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Ship Finance International Limited: Preliminary Q2 2019 results and quarterly cash dividend of $0.35 per share

Ship Finance International Limited (“SFL” or the “Company”) announced its preliminary financial results for the quarter ended June 30, 2019.

Highlights

62nd consecutive quarterly dividend declared, $0.35 per share

Received charter hire of $152 million in the quarter from our vessels and rigs

Adjusted EBITDA of $91 million from consolidated subsidiaries, and $30 from unconsolidated subsidiaries

Reported net income of $28.1 million, or $0.26 per share for the second quarter

Issued NOK800 million (approximately $90 million) senior unsecured bonds

Added approximately $200 million to the backlog of contracted future charter hire

Image: Ship Finance International Limited

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

“Over years, SFL has solidified its position in the maritime industry with a diversified portfolio of assets supported by a strong technical and commercial operating platform. This gives us the ability to offer a wide range of services to our customers, from structured financing to full service time charters.

We are careful and selective in our investments, and with our portfolio approach we have been able to time our investments in each segment through the market cycles. Our consistent ability to access attractively priced capital has allowed us to continuously renew our fleet and pursue profitable growth opportunities. As a result, $2.2 billion has been returned to shareholders through dividends since 2004, and we have a significant charter backlog supporting future distribution capacity.”

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.35 per share. The dividend will be paid on or around September 23, to shareholders on record as of September 12, and the ex-dividend date on the New York Stock Exchange will be September 11, 2019.

Results for the Quarter ended June 30, 2019

The Company reported total U.S. GAAP operating revenues on a consolidated basis of $110.9 million in the second quarter, down from $116.5 million in the previous quarter. This figure is lower than actual earned charter hire as it excludes $10.4 million of charter hire accounted for as ‘repayment of investment in finance leases’ that is not reflected in the income statement. In addition, our 100% owned subsidiaries which are classified as ‘investment in associates’ for accounting purposes, received charter hire of $30.1 million for the quarter which is also not included in the U.S GAAP operating revenue number above.

SFL recorded a $16.8 million gain on mark-to-market movement on its equity securities investments and losses of $4.4 million related to mark-to-market movement on hedging derivatives and $2.0 million in amortization of deferred charges, all of which are non-cash items for the quarter. In addition, the Company recorded a $8.2 million non-cash impairment on a note issued by a subsidiary of Solstad Offshore in conjunction with the sale of a vessel and termination of charter in 2016.

Reported net operating income pursuant to U.S. GAAP for the quarter was $46.1 million, or $0.43 per share, and reported net income was $28.1 million, or $0.26 per share.

Full Report

Source: Ship Finance International Limited

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