SFL - Third Quarter 2015 Results

Ship Finance International Limited (NYSE: SFL) - Earnings Release

Reports preliminary 3Q 2015 results and increased quarterly dividend of $0.45 per share

Hamilton, Bermuda, November 24, 2015. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended September 30, 2015. 

Highlights

• Increased third quarter dividend of $0.45 per share

• $16.6 million profit share from vessels on charter to Frontline

• Successful delivery of eight Capesize dry bulk carriers with long-term charters

• Acquisition of container vessels with long term charters

• Sale of older crude oil tankers

• Selected key financial data:

Dividends and Results for the Quarter Ended September 30, 2015

The Board of Directors has declared an increased quarterly cash dividend of $0.45 per share. The dividend will be paid on or about December 30, 2015 to shareholders on record as of December 10, 2015, and the ex-dividend date will be December 8, 2015. This is the 47^th consecutive quarterly dividend declared by the Company.

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $111 million, or $1.18 per share, in the third quarter of 2015. This number excludes $9.1 million of revenues classified as 'repayment of investments in finance lease', and $47 million of charter revenues earned by 100% owned assets classified as 'investment in associate'.

The new 50% profit share agreement with Frontline had a positive contribution of $16.6 million, or $0.18 per share in the third quarter. There was also a $1.0 million profit share in the third quarter relating to some of our dry bulk carriers.

Reported net operating income pursuant to U.S. GAAP for the quarter was $58.6 million, or $0.63 per share, and reported net income was $45.5 million, or $0.49 per share. This is after approximately $15.2 million, or $0.16 per share in negative non-cash charges, which includes a negative mark-to-market of $12.4 million related to interest rate hedging instruments and amortization of deferred charges of $2.8 million in the third quarter of 2015.

Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS, said in a comment: "Ship Finance delivers yet another strong quarter, and with new vessel deliveries, the distributable cash-flow is expected to increase going forward. Our business model has been tested through all market cycles, and we have been profitable every quarter. With our track record and industry relationships we have access to a consistent stream of growth opportunities, and we have significant capital available for new accretive investments."