Fixed-rate charter hire, excluding profit share contribution, increased by 15% to $132.8 million, or $1.83 per share in the quarter. Due to lease accounting, a significant portion of the cash flow is not included in the Income Statement, but appears as 'repayment of investment in finance leases' only.
The Company's second jack-up drilling rig West Prospero was delivered from the shipyard end of June 2007 and was in operation for the full quarter.
Acquisition of the 2003 built 1,700 TEU container vessel Montemar Europa, which was delivered to Ship Finance end of August 2007.
Acquisition of seven offshore supply vessels from Deep Sea Supply Plc. in combination with 12-year charters. Four vessels were delivered in September 2007, one vessel in October 2007 and the last two vessels are expected to be delivered in December 2007.
Announced the sale of the single hull VLCC Front Duchess to an unrelated third party. Delivery to new owner is expected in the first quarter 2008.
The Board of Directors has approved a share repurchase program for up to 7 million shares (9.6% of outstanding shares).
Dividends and Results for the Quarter ended September 30, 2007
The Board of Directors has declared a cash dividend for the third quarter of $0.55 per share. The dividend will be paid on or about December 10, 2007 to shareholders of record as of November 27, 2007. The ex-dividend date will be November 23, 2007.
The Company reported total operating revenues of $93.4 million or $1.28 per share in the third quarter. This includes $5.5 million or $0.07 per share of profit share from subsidiaries of Frontline Ltd. ("Frontline"). Net operating income for the quarter was $59.9 million or $0.82 per share and net income was $20.6 million or $0.28 per share.
The profit share contribution is down from $15.7 million, or $0.22 per share in the second quarter, due to lower earnings in the spot tanker market in the period. Year-to-date, $36.4 million of profit share has accumulated, of which $15.2 million, or $0.21 per share has not yet been recognized in the accounts, and will be included in the fourth quarter.
The fixed-rate charter hire increased to $132.8 million, or $1.83 per share in the quarter, up from $115.0 million, or $1.58 per share in the second quarter. Net of operating expenses and general and administrative expenses in the third quarter, the contribution from the fixed-rate charters was $105.4 million or $1.45 per share, compared to $87.8 million, or $1.21 per share in the second quarter. This excludes profit share contribution.
For the complete report please see the link below.
November 15, 2007
The Board of Directors
Ship Finance International Limited
Questions should be directed to:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 23114006 / +47 91198844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS