SFL - Fourth Quarter 2010 Results
(Thomson Reuters ONE) -
Ship Finance International Limited (NYSE: SFL) - Earnings Release
Reports preliminary 4Q 2010 results and increased quarterly dividend of $0.38
per share
Hamilton, Bermuda, February 18, 2010. Ship Finance International Limited ("Ship
Finance" or the "Company") today announced its preliminary financial results for
the quarter ended December 31, 2010.
Highlights
* The Board of Directors declared an increased quarterly dividend of $0.38 per
share. This is the fourth consecutive dividend increase in the last 12
months.
* Net income for the quarter was $30.5 million, or $0.39 per share, including
an accrued profit share in the fourth quarter of $2.0 million, or $0.03 per
share. Total accrued profit share for 2010 was $30.6 million and will be
payable in March 2011.
* In November 2010, the Company agreed to acquire two 57,000 dwt Supramax dry
bulk carriers in combination with long-term time charters to Glovis Co. Ltd.
* In January 2011, the Company agreed to acquire the modern Jack-up drilling
rig Soehanah in combination with a seven-year bareboat charter.
* In February 2011, the Company successfully completed an offering of $125
million senior convertible notes due 2016. The notes have an annual coupon
of 3.75% and an initial conversion price of $27.05.
* In February 2011, the Company agreed to sell two single hull VLCCs which
will free up approximately $14.5 million of capital for the Company, after
fees, expenses and debt prepayment.
Dividends and Results for the Quarter ended December 31, 2010
The Board of Directors has declared a quarterly cash dividend of $0.38 per
share. The dividend will be paid on or about March 29, 2011 to shareholders of
record as of March 11, 2011. The ex-dividend date will be March 9, 2011.
The profit share accrued in the fourth quarter was $2.0 million, or $0.03 per
share, compared to $5.8 million, or $0.07 per share in the third quarter of
2010. The reduced profit share was a result of a continued soft tanker spot
market in the fourth quarter.
Under US GAAP, subsidiaries owning the drilling units West Polaris, West
Hercules, West Taurus have been accounted for as 'investment in associate' using
the 'equity method' in 2010. Our investment is a combination of intercompany
loans and equity. In our Income Statement, the net contribution from these
unconsolidated subsidiaries is recognized as a combination of 'interest income
from associate' and 'results in associate'.
The Company reported total net operating revenues on a consolidated basis of
$71.2 million, or $0.90 per share, in the fourth quarter of 2010. This number
excludes charter hire classified as 'repayment of investments in finance lease',
and also excludes substantial charter revenues earned by the assets classified
as 'investment in associate'.
Reported net operating income for the quarter was $38.7 million, or $0.49 per
share, and reported net income was $30.5 million, or $0.39 per share. The fourth
quarter net income was partly impacted by higher operating expenses due to the
delivery of three new vessels in the quarter. In addition, this was the first
full quarter where all non-double hull VLCCs are on a reduced rate and
classified as operating leases. Due to reduced rates and book depreciation, the
net operating income contribution from these vessels was $(0.7) million, or
$(0.01) per share in the quarter, compared to $3.0 million, or $0.04 per share
positive contribution in 4Q 2009.
The full report can be found in the link below
February 18, 2011
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Questions should be directed to:
Investor and Analyst Contact:
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
Forward Looking Statements
This press release contains 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, data contained in the Company's records and other data
available from third parties. 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 our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions including fluctuations in charter hire rates and
vessel values, changes in demand in the markets in which we operate, changes in
demand resulting from changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, developments regarding the technologies
relating to oil exploration, changes in market demand in countries which import
commodities and finished goods and changes in the amount and location of the
production of those commodities and finished goods, increased inspection
procedures and more restrictive import and export controls, changes in our
operating expenses, including bunker prices, drydocking and insurance costs,
performance of our charterers and other counterparties with whom we deal, timely
delivery of vessels under construction within the contracted price, 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 Securities and
Exchange Commission.
Fourth Quarter 2010 Results:
http://hugin.info/134876/R/1490581/426241.pdf
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#1490581]
Unternehmensinformation / Kurzprofil:
Datum: 18.02.2011 - 14:33 Uhr
Sprache: Deutsch
News-ID 51700
Anzahl Zeichen: 7714
contact information:
Town:
Hamilton
Kategorie:
Business News
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"SFL - Fourth Quarter 2010 Results"
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