SFL - Closing of charter amendments with Frontline Ltd.
(Thomson Reuters ONE) -
Press release from Ship Finance International Limited, January 3, 2012
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today announced that it has successfully completed the previously announced
amendments to the chartering agreements with Frontline Ltd. ("Frontline").
Ship Finance has agreed to temporarily reduce the charter rates by $6,500 per
day per vessel from 2012 through 2015, and thereafter revert to previous charter
rate levels.
Frontline has paid a cash compensation of $106 million to Ship Finance. In
addition there will be a cash sweep feature, whereby Ship Finance will receive
100% of vessel earning up to the old base rates. The old profit share
arrangement has been improved from 20% to 25%, and will be calculated from the
old threshold levels. Of the $106 million upfront payment, $50 million is a non-
refundable, early payment of profit split for revenues above the old threshold
levels. The cash sweep and the profit split will be payable on an annual basis,
as before.
Following the agreement with Frontline, Ship Finance has prepaid $156 million of
related bank financing, of which $106 million represents the cash compensation
from Frontline. Consequently, the bank financing relating to the vessels has
been reduced from approximately $740 million to approximately $584 million at
year-end 2011.The net effect of this significant debt reduction is considerably
lower debt service payments for Ship Finance going forward, and for 2012 alone
we estimate debt service to be reduced by approximately $40 million. If
Frontline generates market revenues in line with the previous base rates, the
cash sweep payments alone may give a positive net effect of approximately $0.20
per share per quarter, or double the previous net contribution from Frontline.
January 3, 2011
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions should be directed to:
Investor and Analyst Contacts:
Eirik Eide, Chief Financial Officer, Ship Finance Management AS
+47 23114006 / +47 95008921
Magnus T. Valeberg, Vice President, Ship Finance Management AS
+47 23114012 / +47 93440960
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS
+47 23114011 / +47 90141243
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock
Exchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 69
vessels, including 25 crude oil tankers (VLCC and Suezmax), two chemical
tankers, five oil/bulk/ore vessels, 11 drybulk carriers including six
newbuildings, 15 container vessels including four newbuildings, six offshore
supply vessels, one jack-up drilling rig, one ultra-deepwater drillship and two
ultra-deepwater semi-submersible drilling rigs. The fleet is one of the largest
in the world and most of the vessels are employed on long-term charters.
More information can be found on the Company's website: www.shipfinance.org
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Ship Finance cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this presentation include the strength
of world economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in demand in the
tanker market as a result of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in the Company's operating
expenses including bunker prices, dry-docking and insurance costs, changes in
governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due
to accidents or political events, and other important factors described from
time to time in the reports filed by the Company with the United States
Securities and Exchange Commission.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ship Finance International Limited via Thomson Reuters ONE
[HUG#1574723]
Unternehmensinformation / Kurzprofil:
Datum: 03.01.2012 - 10:22 Uhr
Sprache: Deutsch
News-ID 100627
Anzahl Zeichen: 5755
contact information:
Town:
Hamilton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 129 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SFL - Closing of charter amendments with Frontline Ltd."
steht unter der journalistisch-redaktionellen Verantwortung von
Ship Finance International Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
