SFL - Acquisition of two car carriers in combination with five-year charters
(Thomson Reuters ONE) -
Press release from Ship Finance International Limited, October 24, 2012
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today announced that it has agreed to acquire two car carriers at attractive
prices. The Japan-built vessels have a capacity of approximately 6,500 car
equivalent units (CEU) and were built in 2005 and 2006, respectively.
The vessels will be time chartered to an investment grade logistics company,
publicly listed in Asia. The charter period will be five years, adding
approximately $85 million to our charter backlog. Expected delivery of the
vessels will be in October and November 2012.
The funding of the vessels will be a combination of equity and loans, and Ship
Finance has already received indications for 70% financing of the purchase price
at favorable terms. The aggregate net cash flow after estimated operating
expenses, interests and loan amortization is projected to be approximately $4.8
million in aggregate per year, or approximately 20% annual return on invested
equity during the charter period.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "We are
very pleased to expand our long-standing relationship with one of the premier
logistics companies in Asia. The purchase price is very attractive compared to
replacement cost for similar high specification assets, and there will be an
immediate positive cashflow effect for the Company already in the fourth
quarter."
October 24, 2012
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Investor and Analyst Contacts:
Harald Gurvin, Chief Financial Officer, Ship Finance Management AS
+47 23114009
Magnus T. Valeberg, Senior Vice President, Ship Finance Management AS
+47 23114012
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, Ship Finance Management AS
+47 23114011
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 68
vessels, including 25 crude oil tankers (VLCC and Suezmax), two chemical
tankers, three oil/bulk/ore vessels, 11 drybulk carriers including two
newbuildings, 15 container vessels including four newbuildings, six offshore
supply vessels, one jack-up drilling rig, one ultra-deepwater drillship, two
ultra-deepwater semi-submersible drilling rigs and two car carriers. 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#1651888]
Unternehmensinformation / Kurzprofil:
Datum: 24.10.2012 - 11:44 Uhr
Sprache: Deutsch
News-ID 195596
Anzahl Zeichen: 5354
contact information:
Town:
Hamilton
Kategorie:
Business News
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"SFL - Acquisition of two car carriers in combination with five-year charters"
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