Ship Finance Reports 1Q Profit, Looking for Accretive Investment Opportunities

Ship Finance International Bermuda-based shipowner Ship Finance International (SFL) delivered a net income of USD 32 million in the first quarter of this year, up from a net income of USD 29 million posted in the previous quarter. The company earned USD 152 million of total charter revenues in 1Q, compared to USD 154 million posted in 4Q 2016. SFL continued diversification and renewal of its fleet as it took delivery in March of MSC Viviana, the second 19,200 TEU boxship which immediately commenced a 15-year bareboat charter to Mediterranean Shipping Company (MSC). The first vessel was delivered in December 2016 and is also chartered to MSC for a period of 15 years. The company also expects to take delivery of the two 114,000 dwt LR2 newbuilding product tankers in 3Q 2017. Both ships have been chartered out on long-term charters to Phillips 66, with a minimum period of seven years and options for the charter to extend the period to up to 12 years. In April, the 1,700 TEU containership MSC Alice started a hire-purchase lease also to MSC for a period of five years at a net bareboat hire rate of USD 1,600 per day. Furthermore, SFL secured charter for the 2007-built drilling rig Soehanah with a national company in Asia for a minimum period of 12 months. Ship Finance continues to take steps to strengthen its balance sheet and diversify its contracted backlog. In the first quarter, we took delivery of our second 19,200 TEU container vessel, and we expect to take delivery of two product tankers in the third quarter this year. These three vessels, backed by long-term charters, will add approximately USD 26 million in annual EBITDA following their deliveries. We are also pleased to have secured employment for our sole uncontracted drilling rig, Ole B. Hjertaker, CEO of Ship Finance Management AS, commented. We are of course focused on the restructuring of Seadrill, one of our large counterparties, which we hope will be finalized in the coming months. At the same time, we have significant capital available for investments, and our objectives remain to find accretive investment opportunities across our core markets and to maximize returns from our existing portfolio of assets, Hjertaker added.