SFL - Fourth Quarter 2012 Results

Ship Finance International Limited yesterday announced its preliminary financial results for the quarter ended December 31, 2012.
Highlights
• Fourth quarter dividend of $0.39 per share was prepaid in December 2012
• Acquisition of two car carriers in combination with long-term charters
• Raised approximately $89 million in a public equity offering
• Raised the equivalent of approximately $105 million in NOK-denominated senior notes due 2017
• Refinanced $420 million bank debt related to an ultra-deepwater drillship
• Raised $350 million senior convertible notes due 2018 subsequent to quarter-end
• Disposal of four older vessels in 4Q 2012 and two vessels in 1Q 2013
Dividends and Results for the Quarter Ended December 31, 2012
The Board of Directors previously declared a fourth quarter cash dividend of $0.39 per share in November 2012. The Board decided to accelerate the fourth quarter 2012 dividend payment due to uncertainties surrounding taxation on dividends for our U.S. shareholders. The accelerated dividend was paid together with the third quarter 2012 dividend payment in late December 2012.
The Company reported total U.S. GAAP operating revenues on a consolidated basis of $77.7 million, or $0.92 per share, in the fourth quarter of 2012. This number excludes $14.6 million of revenues classified as `repayment of investments in finance lease`, and also excludes $77.8 million of charter revenues earned by assets classified as `investment in associate`.
The cash sweep agreement with Frontline had a net positive effect of $12.1 million, or $0.14 per share in the fourth quarter. For the full year 2012 a total of $52.2 million cash sweep was recorded and is payable to Ship Finance in March 2013.
The Company recorded a $21.5 million gain on sale of vessels in the quarter arising from the sale of four older vessels, including three combination carriers and one single-hull VLCC.
Reported net operating income pursuant to U.S. GAAP for the quarter was $57.9 million, or $0.68 per share, and reported net income was $51.1 million, or $0.60 per share.
Ole B. Hjertaker, Chief Executive Officer of Ship Finance Management AS said in a comment: "Since October 2012, we have successfully raised a combined amount of 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."
Mr Hjertaker continued: "We believe that Ship Finance is well positioned with a strong balance sheet to selectively pursue new investments. We acquired two car carriers in the fourth quarter, and are actively reviewing other investment opportunities across our main market segments. At the same time we are also closely monitoring the performance of our chartering counterparties in light of the prevailing soft spot-market in some of the shipping segments."
Source: Ship Finance International