Ship Finance International Limited (NYSE: SFL) - Earnings Release
Reports preliminary 3Q 2009 results and quarterly dividend of $0.30 per share
Hamilton, Bermuda, November 27, 2009. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended September 30, 2009.
Highlights
?Declared a quarterly dividend of $0.30 per share.
?Reported adjusted net income for the quarter of $36.3 million, or $0.47 per share. Adjustments include a negative non-cash mark-to-market of derivatives of $2.3 million.
?Accrued profit share in the third quarter was $4.8 million, or $0.06 per share. Accrued profit share year-to-date is $27.3 million and payable in March 2010.
?The charterer of the jack-up drilling rig West Ceres exercised a purchase option in July 2009. Net cash effect to the Company in the third quarter was approximately $40 million after repayment of associated bank debt.
?The single-hull VLCC Front Duchess was sold in September 2009. Net cash effect to the Company in the third quarter was approximately $2.5 million after repayment of associated bank debt and a cancellation fee to Frontline.
?The charterer of the single-hull VLCC Front Vanadis exercised a purchase option in November 2009. Net cash effect to the Company in the fourth quarter was approximately $1.2 million after repayment of associated debt.
?The first newbuilding Suezmax tanker was delivered from the shipyard in November 2009. The vessel, MV Glorycrown, has been chartered out for 5-years with a purchase obligation at the end of the charter period.
Dividend
The Board of Directors has declared a quarterly dividend of $0.30 per share in cash, or, at the election of the shareholder, payable in newly issued common shares. The dividend will be paid on or about January 27, 2010 to shareholders of record as of December 8, 2009. The ex-dividend date will be December 4, 2009.
Similar to the previous three quarters, shareholders may make an election to receive the dividend in newly issued common shares after reviewing a prospectus supplement relating to the dividend payment which will be filed with the U.S. Securities and Exchange Commission ("SEC"). The number of common shares to be issued as dividend will be set based on the volume-weighted average price of the shares on the New York Stock Exchange during the three trading days prior to the ex-dividend date, less a 5% discount.
The Company's largest shareholders, Farahead Investments Inc. ("Farahead") and Hemen Holding Ltd. ("Hemen"), who collectively own 42.6 % of the shares, have again informed the Company that they will elect to receive all of their dividends in the form of newly issued common shares. Farahead and Hemen are indirectly controlled by trusts established by Mr. John Fredriksen for the benefit of his immediate family.
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http://shipfinance.bm/index.php?id=462&pressrelease=1357732.html
