Meaning: good dividends
SFL $29.66 Sale of two newbuilding Suezmax vessels at record high prices
Thursday July 31, 8:17 am ET
HAMILTON, BERMUDA--(MARKET WIRE)--Jul 31, 2008 --
Ship Finance International Limited (SFL - News) ("Ship Finance" or the "Company"), today announced that it has entered into an agreement to sell two newbuilding Suezmax crude oil tankers, currently under construction in China. Scheduled delivery from the shipyard is in 2009, and delivery to the new owner will take place immediately after delivery from the shipyard.
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The gross sales price per vessel has been agreed to $111 million, and net of construction costs and broker commissions we expect to recognize a book profit of approximately $68 million ($0.94 per share), or approximately $34 million per vessel upon delivery to the new owner.
Lars Solbakken, Chief Executive Officer in Ship Finance Management AS, said in a comment: "We are pleased to announce this very profitable sale of two newbuildings which we ordered without long term employment two years ago. The sale is consistent with our strategy to maximize returns for our shareholders, and we will book a profit of approximately $68 million on a very moderate equity investment in this project. We see significant growth opportunities across our target segments, and the net proceeds from this sale will be redeployed as equity in new accretive projects that we expect will increase our long-term dividend capacity."
