HAMILTON, BERMUDA--(Marketwire - Oct 24, 2012) - Press release from Ship FinanceInternational Limited, October 24, 2012
Ship Finance International Limited (
The vessels will be time chartered to an investment grade logisticscompany,publicly listed in Asia. The charter period will be five years, addingapproximately $85 million to our charter backlog. Expected delivery of thevessels will be in October and November 2012.
The funding of the vessels will be a combination of equity and loans, andShipFinance has already received indications for 70% financing of the purchasepriceat favorable terms. The aggregate net cash flow after estimated operatingexpenses, interests and loan amortization is projected to be approximately$4.8million in aggregate per year, or approximately 20% annual return oninvestedequity during the charter period.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: "Wearevery pleased to expand ourlong-standing relationship with one of the premierlogistics companies in Asia. The purchase price is very attractive comparedtoreplacement cost for similar high specification assets, and there will beanimmediate positive cashflow effect for the Company already in the fourthquarter."
October 24, 2012
The Board of Directors
Ship Finance International Limited
About Ship Finance
Ship Finance is a major ship owning company listed on the New York StockExchange (
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 statementsarebased upon various assumptions, many of which are based, in turn, uponfurtherassumptions, including Ship Finance management's examination of historicaloperating trends. Although Ship Finance believes that these assumptionswerereasonable when made, because assumptions are inherently subject tosignificantuncertainties and contingencies which are difficult or impossible topredict andare beyond its control, Ship Finance cannot give assurance that it willachieveor accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual resultstodiffer materially from those discussed in this presentation include the strengthof world economies and currencies, general market conditions includingfluctuations in charter hire rates and vessel values, changes in demand inthetanker market as a result of changes in OPEC's petroleum production levelsandworldwide oil consumption and storage, changes in the Company's operatingexpenses including bunker prices, dry-docking and insurance costs, changesingovernmental rules and regulations or actions taken by regulatoryauthorities,potential liability from pending or future litigation, general domestic andinternational political conditions, potential disruption of shipping routesdueto accidents or political events, and other important factors describedfromtime to time in the reports filed by the Company with the United StatesSecurities and Exchange Commission.
This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:
(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
- Investment & Company Information
Chief Financial Officer, Ship Finance Management AS
Magnus T. Valeberg
Senior Vice President, Ship Finance Management AS
Ole B. Hjertaker
Chief Executive Officer, Ship Finance Management AS