DJ Ship Finance 4th-Quarter Net Jumps 69% on One-Time Gains
By Saabira Chaudhuri
Ship Finance International Ltd.´s (SFL) fourth-quarter earnings jumped 69% as the tanker company benefited from a cash sweep agreement and a one-time gain from a sale.
Ship Finance, which owns and charters out large vessels that transport crude oil, in recent years has been diversifying its assets to include areas such as dry bulk and container ships. Though Ship Finance had seen a soft tanker market, the company in August said that the crude oil tanker market remained relatively firm.
Chief Executive Ole B. Hjertaker noted that since October, the company has raised more than $1 billion in equity, bonds, convertible notes and bank financing. "The company has in a timely manner addressed debt maturities and refinanced both secured and unsecured debt, in addition to raising capital earmarked for growth," he said. "We believe that Ship Finance is well positioned with a strong balance sheet to selectively pursue new investments."
Mr. Hjertaker added Ship Finance is actively reviewing investment opportunities across its main market segments, while also closely monitoring the performance of its chartering counterparties in light of the "prevailing soft spot-market in some of the shipping segments."
Ship Finance reported a profit of $51.1 million, or 60 cents a share, versus $30.2 million, or 38 cents a share, a year earlier. The latest period included $12.1 million from a cash sweep agreement with Frontline Ltd. (FRO) and a $21.5 million gain on the sale of vessels.
Total operating revenue rose 2.1% to $77.7 million.
Analysts polled by Thomson Reuters most recently forecast earnings of 33 cents on revenue of $89.9 million.
Shares closed Friday at $16.27 and were inactive in recent premarket trading. The stock has risen 20% over the past 12 months.
I love your rants Stagg you soar with the Eagles --you are the best -- you keep me interested all the time!
SFL will go the direction of the market and right now fear is in the air-- I say be careful as a fool is soon parted from his money
Fast Money says buy PG 2.9$% and JNJ 3.2% --Me I will be on hold and see what Friday brings
Very best to all
And Mark I gotta love your input on all things--Bayman and Gambler , Keebon and many others thanks so much for your posts
keeps me going as i am 65% cash
Max the Sarge