Ship Finance International Limited (SFL) - Earnings Release
Reports preliminary 1Q 2014 results and increased quarterly dividend of $0.41 per share
Hamilton, Bermuda, May 27, 2014. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended March 31, 2014.
Highlights
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Increased first quarter dividend of $0.41 per share
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$11.7 million accumulated in cash sweep from Frontline
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Delivery of the drilling rig West Linus and commencement of long-term charter
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Acquisition of nine container vessels in combination with long-term charters
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Acquisition of two 82,000 dwt dry-bulk carriers in combination with long-term charters
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Secured long term contracts for four 8,700 TEU container vessels under construction
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Raised approximately $150 million of senior unsecured bonds
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Received $15 million in partial settlement for early termination of charters and unpaid charter hire
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Selected key financial data:
| Three Months Ended | ||||
| Mar 31, 2014 | Dec 31, 2013 | |||
| Charter revenues(1) | $160m | $152m | ||
| EBITDA(2) | $130m | $114m | ||
| Net income | $ 41m | $ 18m | ||
| Earnings per share | $0.44 | $0.20 | ||
Dividends and Results for the Quarter Ended March 31, 2014
The Board of Directors has declared an increased quarterly cash dividend of $0.41 per share, and Ship Finance has now declared dividends for 41 consecutive quarters. The dividend will be paid on or about June 30, 2014 to shareholders of record as of June 12, 2014. The ex-dividend date will be June 10, 2014.
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $82.7 million, or $0.89 per share, in the first quarter of 2014. This number excludes $11.2 million of revenues classified as `repayment of investments in finance lease`, and also excludes $67.1 million of charter revenues earned by assets classified as `investment in associate`.
The cash sweep agreement with Frontline had a positive effect of $11.7 million, or $0.13 per share in the quarter. The cash sweep for the full year 2014 will be payable in March 2015. There was also a $0.5 million profit share in the quarter relating to four Handysize dry-bulk carriers.
Reported net operating income pursuant to U.S. GAAP for the quarter was $46.6 million, or $0.50 per share, and reported net income was $40.7 million, or $0.44 per share. This includes approximately $1.0 million of non-cash expense of theoretical equity cost relating to one of our convertible bonds and $10.2 million book gain related to early termination of charters.
Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: "We continue building the asset base and charter backlog across our core business segments. We have significant capital available for new transactions and our objective is to continue building the long-term distributable cash flow."
The full report can be found in the link below.