Ship Finance Posts Third Quarter Results

Posted by Michelle Howard November 27, 2013

Ship Finance International Limited announced its preliminary financial results for the quarter ended September 30, 2013, reporting preliminary 3Q 2013 results and quarterly dividend of $0.39 per share Hamilton.

Highlights

Declares third quarter dividend of $0.39 per share
Refinanced $390 million bank debt related to an ultra-deepwater drilling rig
Disposal of two older VLCCs

Selected key financial data:

Three Months Ended:
                                   Sep 30, 2013     /    Jun 30, 2013
Charter revenues(1)      $157m      /     $154m
EBITDA(2)                  $121m     /      $122m
Net income                $13m   /      $25m
Earnings per share      $0.14       /    $0.29

Dividends and Results for the Quarter Ended September 30, 2013
The Board of Directors has declared a quarterly cash dividend of $0.39 per share, and Ship Finance has now declared dividends for 39 consecutive quarters. The dividend will be paid on or about December 30, 2013 to shareholders of record as of December 12, 2013. The ex-dividend date will be December 10, 2013.

The company reported total U.S. GAAP operating revenues on a consolidated basis of $68.1 million, or $0.73 per share, in the third quarter of 2013. This number excludes $13.8 million of revenues classified as 'repayment of investments in finance lease', and also excludes $76.1 million of charter revenues earned by assets classified as 'investment in associate'.

Reported net operating income pursuant to U.S. GAAP for the quarter was $24.3 million, or $0.26 per share, and reported net income was $13.5 million, or $0.14 per share. This includes a recorded non-cash mark-to-market loss related to interest rate hedge derivatives of $2.6 million and approximately $1 million of non-cash expense of theoretical equity cost relating to one of our convertible bonds. The quarter also includes $1.4 million of drydocking costs which were fully expensed in the quarter.

Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: "Over the last 12 months, we have successfully raised a combined amount of more than $2.5 billion in equity, bonds, convertible notes and bank financing. The company has in a timely manner addressed debt maturities and refinanced both secured and unsecured debt, in addition to raising capital earmarked for growth."

Mr. Hjertaker continued, "With the ordering of four 8,700 TEU container vessels and the acquisition of a harsh environment jack up drilling rig, we have in 2013 committed to gross investments of around $950 million, and look forward to the positive cash contribution from these investments in 2014 and onwards."