SFL - Sale of older Suezmax tanker
05 August 2015 - 10:12PM
Press release from Ship Finance
International Limited, August 5, 2015.
Ship Finance International Limited
(NYSE: SFL) ("Ship Finance" or the "Company"), today announced that
it has agreed to sell the 1995 built Suezmax Front
Glory to an unrelated third party. The Company has
simultaneously agreed to terminate the corresponding charter party
for the 20-year old crude oil carrier with a subsidiary of
Frontline Ltd. ("Frontline").
The vessel is expected to be
delivered to its new owner at the end of the third quarter, 2015.
Net sales price is agreed to approximately $16 million, and Ship
Finance will receive a net amount of approximately $13.8 million,
after compensation of approximately $2.2 million to Frontline for
the termination of the current charter. The vessel is currently
debt free.
Divesting of older vessels is a
part of the Company's strategy to renew and diversify the fleet,
and the proceeds are expected to be reinvested in new assets.
Following this sale, the number of vessels on charter to Frontline
will be reduced to 16 vessels, including 12 VLCCs and four Suezmax
crude oil carriers.
The Board of Directors
Ship Finance International
Limited
Hamilton, Bermuda
Questions can be directed to Ship
Finance Management AS:
Harald Gurvin, Chief Financial
Officer: +47 23114009
Andre Reppen, Senior Vice
President: +47 23114055
About Ship
Finance
Ship Finance is a major ship
owning company listed on the New York Stock Exchange (NYSE: SFL).
Including acquisitions and sales, the Company will have a fleet of
74 vessels consisting of: 18 crude oil tankers (VLCC and Suezmax,
excluding the vessel agreed sold), two chemical tankers, 22
dry-bulk carriers (including 4 acquisitions), 20 container vessels
(including 3 acquisitions), two car carriers, six offshore supply
vessels, two jack-up drilling rigs and two ultra-deepwater
semi-submersible drilling rigs. 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.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ship Finance International Limited via
Globenewswire
HUG#1943797