Press release from Ship Finance International Limited, February 7, 2013.
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today announced that it has agreed to sell the 1993-built Suezmax Front Pride
and the 1991-built OBO Front Guider toÂ unrelated third parties. The Company has
simultaneously agreed to terminate the corresponding charter parties with a
subsidiary of Frontline Ltd. ("Frontline").
Front Pride is expected to be delivered to the new owner in February 2013 and
Ship Finance expects to receive net proceeds of approximately $12.1 million
including a $2.1 million charter termination compensation payment from
Front Guider is expected to be delivered to the new owner in March 2013 and Ship
Finance expects to receive net proceeds of approximately $9.1 million. This is
the last of the older OBOs in the fleet, and the Company received charter
termination compensation for this vessel already in December 2012, as part of
the $23.5 million settlement for the remaining OBOs.
The Company expects to record book gains of approximately $13.3 million in the
first quarter of 2013 in connection with the sale of the two vessels.
Divesting of older vessels is a part of the Company's strategy to renew and
diversify the fleet, and the net cash proceeds after repayment of debt is
expected to be reinvested in new assets. Following the sale of the two vessels,
the number of vessels on charter to Frontline is reduced to 22 vessels,
including 17 VLCCs and five Suezmax crude oil carriers.
The newbuilding program continues according to plan with five vessels remaining.
One 32,000 dwt Handysize bulk carrier is scheduled to be delivered in the first
quarter of 2013, three 4,800 teu eco-design container vessels are scheduled for
the second half of 2013, and a 4,800 teu eco-design container vessel is
scheduled to be delivered in the first quarter of 2014. All newbuildings have
been chartered out on medium to long-term time charters.
The Board of Directors
Ship Finance International Limited
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock
Exchange (NYSE: SFL). Including newbuildings, the Company has a fleet of 65
vessels, including 24 crude oil tankers (VLCC and Suezmax), two chemical
tankers, 12 drybulk carriers including one newbuilding, 15 container vessels
including four newbuildings, six offshore supply vessels, one jack-up drilling
rig, one ultra-deepwater drillship, two ultra-deepwater semi-submersible
drilling rigs and two car carriers. The fleet is one of the largest in the world
and most of the vessels are employed on long-term charters.
More information can be found on the Company's website: www.shipfinance.org
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Ship Finance management's examination of historical
operating trends. Although Ship Finance believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Ship Finance cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this presentation include the strength
of world economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in demand in the
tanker market as a result of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in the Company's operating
expenses including bunker prices, dry-docking and insurance costs, changes in
governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due
to accidents or political events, and other important factors described from
time to time in the reports filed by the Company with the United States
Securities and Exchange Commission.
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ship Finance International Limited via Thomson Reuters ONE