d804706_6-k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES
EXCHANGE ACT OF 1934
For
the month of August 2007
Commission
File Number: 0-22704
Ship
Finance International Limited
|
(Translation
of registrant’s name into English)
|
|
Par-la-Ville
Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
|
(Address
of principal executive office)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F [X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes
[_] No [X]
If
“Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of the press release of Ship Finance International
Limited (the “Company”) dated August 22, 2007, announcing the Company’s results for the second quarter
of 2007
and the declaration of a quarterly dividend in the amount of $0.55 per
share.
Exhibit
1
Ship
Finance International Limited (NYSE: SFL) - Earnings
Release
|
Reports
second quarter results and quarterly dividend of $0.55 per
share
|
Ship
Finance International Limited (“Ship Finance” or the “Company”) announces the
financial results for the quarter ended June 30, 2007.
Highlights
|
·
|
Reported
net income for the quarter of $39.5 million or $0.54 per share, including
profit share of $15.7 million or $0.22 per
share.
|
|
·
|
Declared
a quarterly cash dividend of $0.55 per
share.
|
|
·
|
All
five container vessels chartered to Horizon Lines, Inc. have commenced
their long-term charters with full cash flow and earnings effect
from the
third quarter.
|
|
·
|
The
Company’s second jack-up drilling rig West Prospero was delivered
from the shipyard and commenced its 15-year charter to Seadrill Limited
at
the end of the quarter.
|
|
·
|
The
single hull VLCC Front Vanadis was sold on hire/purchase terms,
and a gain of $4.3 million was recorded in the
quarter.
|
|
·
|
Five
newbuilding container vessels were ordered in China for delivery
in 2010
at an aggregate price of approximately $190
million.
|
|
·
|
Acquisition
of a 2003 built 1,700 TEU container vessel scheduled to be delivered
in
August 2007.
|
|
·
|
Acquisition
of five new offshore supply vessels from Deep Sea Supply Plc. in
combination with 12-year charters. Scheduled delivery in late August
2007.
|
|
·
|
Amendment
of profit share agreement with Frontline Ltd. Profit share will be
earned
on a quarterly basis, starting the second quarter
2007.
|
Dividends
and Results for the Quarter ended June 30, 2007
The
Board of Directors has declared a cash dividend for the second quarter of $0.55
per share. The dividend will be paid on or about September 13, 2007 to
shareholders of record as of August 31, 2007. The ex-dividend date will be
August 29, 2007.
The
Company reported total operating revenues of $96.6 million or $1.33 per share
in
the second quarter. This includes $15.7 million or $0.22 per share of profit
share from Frontline Ltd. (“Frontline”). Net operating income for the quarter
was $70.5 million or $0.97 per share and net income was $39.5 million or $0.54
per share.
As
the majority of the Company’s assets are accounted for as finance leases, a
significant portion of the charter hire received does not appear in the Income
Statement. These amounts are classified as ‘repayment of investment in finance
leases’, and are only included in the Statement of Cashflows. For the second
quarter, this amounted to $46.2 million or $0.64 per share.
Net
cash provided by operating activities in the second quarter was $29.0 million,
net cash used in investing activities was $201.9 million and net cash provided
by financing activities was $125.7 million.
Liquidity
and Capital Expenditure
As
of June 30, 2007, the Company had $319.8 million in available funds, comprised
of $100.1 million in free cash and cash equivalents (including $1.0 million
in a
100% owned subsidiary accounted for under the equity method) and $219.7 million
in available credit lines.
As
of June 30, 2007, and including acquisitions announced after the quarter end,
the Company’s capital commitments relating to newbuildings and acquisitions are
estimated as follows:
Period:
|
2H
2007
|
2008
|
2009
|
2010
|
Total
|
|
$266
mill.
|
$323
mill.
|
$168
mill.
|
$98
mill.
|
$855
mill.
|
The
above amounts are net of any seller’s credit, and separate financing
arrangements are already in place for several of these investments.
Business
Update
As
of June 30, 2007 the fleet consisted of 53 operating vessels and rigs, and
the
Company had contracted to acquire 12 newbuildings. After the end of the quarter,
Ship Finance has announced the acquisition of six additional vessels, scheduled
to be delivered in late August 2007.
The
gross fixed-rate charter backlog was approximately $5.5 billion as of June
30,
2007, with an average charter tenure of 10.3 years, or 13.9 years if weighted
by
charter revenue. Some of our charters have purchase or cancellation options
which, if exercised, will reduce the fixed charter backlog and average charter
tenure.
As
of June 30, 2007, 34 of our crude oil tankers and eight of our oil/bulk/ore
(“OBO”) vessels operated on long term contracts to subsidiaries of Frontline. In
addition to the fixed base charter rate, Ship Finance is also entitled to
receive 20% of the time charter equivalent (“TCE”) earnings for these vessels in
excess of the base charter rate. For the second quarter of 2007, the average
base charter rate was approximately $26,300 for our VLCC’s and $20,700 for our
Suezmax tankers and OBOs. The average vessel earnings have consistently been
above the base charter rates since the Company’s inception in 2003.
The
average daily TCE earned by Frontline in the second quarter in the spot and
time
charter period market from the Company’s VLCCs, Suezmax tankers and OBOs were
approximately $49,200, $43,700 and $38,300, respectively. The corresponding
average daily TCEs in the first quarter were approximately $46,700, $36,600
and
$33,900, respectively.
In
April 2007, the newbuilding container vessels Horizon Eagle and
Horizon Falcon were delivered on 12-year charters to Horizon Lines,
Inc. (“Horizon Lines”) and Horizon Tiger, the final vessel, was
delivered in May 2007. All five vessels are now operating, with full cashflow
and earnings effect from the third quarter. The vessels are chartered out on
bareboat contracts, where Horizon Lines covers all operating and maintenance
expenses, and the average annual net cash contribution after interest expense
and debt repayment will be approximately $0.15 per share.
In
June 2007, the Company ordered two 2,500 TEU and three 1,700 TEU newbuilding
container vessels in China with delivery scheduled for 2010. The aggregate
contract price is approximately $190 million, of which 20% is payable in 2007
and the remainder is payable in intervals based on construction progress,
starting in mid 2009. Based on a combination of very attractive contract price
for the vessels and a positive outlook for the container market, Ship Finance
expects the new vessels to have a positive contribution to long term dividend
capacity when the vessels commence trading.
In
late June 2007, the Company’s second jack-up drilling rig West Prospero
was delivered from the shipyard and commenced a 15-year bareboat charter to
a
subsidiary of Seadrill Limited. No revenues were recorded in the second quarter,
but there will be full cashflow and earnings effect from the third quarter.
The
charter rate and the loan installments will be higher in the initial period
when
the rig is on a profitable third party sub-charter to ExxonMobil Exploration
and
Production Malaysia Inc., and the average annual net cash contribution for
the
first six years after estimated interest expense and debt repayment will be
approximately $0.10 per share.
In
July 2007, the Company announced the acquisition of the 2003 built 1,700 TEU
container vessel Montemar Europa at a net purchase price of $32.5
million. The acquisition of the vessel will be funded through the Company’s cash
and available credit lines. The vessel is scheduled to be delivered in late
August, and has a $13,500 per day timecharter attached that expires in the
fourth quarter of 2008. The charter market for modern 1,700 TEU container
vessels has strengthened significantly in 2007, and the vessel will be marketed
for medium to long-term contracts following the completion of the existing
charter.
In
August 2007, Ship Finance announced the agreement to acquire five offshore
supply vessels from Deep Sea Supply Plc. (“Deep Sea”) based on a total delivered
price of $198.5 million, less a seller’s credit of $17.5 million. The Company
has arranged a $148.9 million bank financing, and the remaining $32.1 million
will be funded through the Company’s cash and available credit lines. The
vessels are scheduled to be delivered to Ship Finance in late August 2007 and
will be bareboat chartered back to Deep Sea for a period of 12 years. The
average annual net cash contribution for the first seven years after estimated
interest expense and debt repayment will be approximately $0.07 per
share.
Corporate
and Other Matters
The
profit share agreement with Frontline has been very profitable for the Company,
and has over the last 14 quarters generated an average quarterly contribution
of
$22.3 million or $0.31 per share. The profit share has been calculated at the
end of each calendar year, and as a consequence, no profit share could be
recorded until the cumulative TCE earnings-to-date exceeded annual base
charterhire under the Frontline charters. One effect of this accounting method
is that the profit share recorded in the quarterly income statement has
generally not reflected the profit share generated in the quarter.
The
Company has now agreed with Frontline to change the profit share agreement
from
an annual calculation to a quarterly calculation, effective April 1, 2007.
Based
on the amended agreement, the profit share may also be negative for a quarter,
but the aggregate profit share to Ship Finance for any calendar year will be
payable in March the following year, and will not be less than
zero.
The
new agreement is not expected to have an impact on the annual cash profit share
payable by Frontline, but will enable Ship Finance to record the profit share
contribution in the quarter when it is generated.
The
accumulated profit share associated with the period from January through March
2007, estimated by the Company to approximately $15.2 million, will be recorded
based on the previous calculation method and is expected to be included in
the
operating revenues in the fourth quarter.
At
the end of the second quarter, $449.1 million of the 8.5% Senior Notes due
2013
were outstanding, of which $57.0 million were subject to Bond Swap Agreements.
After the end of the quarter this has increased to $100.4 million. The financing
cost on the Senior Notes held under Bond Swap Agreements is effectively reduced
to approximately LIBOR plus 1% per annum.
Strategy
and Outlook
The
strategy of the Company is to increase its portfolio of assets and to employ
its
assets on medium- to long-term contracts to support a predictable long-term
dividend capacity. The Company will seek to reduce the risks for its
shareholders by investing in different sectors of the shipping and oil service
industry and also by having a diversified client base. During 2006 and 2007,
the
Company has committed to new investments in excess of $1.6 billion, and these
investments have increased the Company’s fixed charter income and dividend
capacity.
After
the completion of recently announced acquisitions, the Company will have an
operating fleet of 59 vessels and rigs, and the Company has contracted to
acquire 12 additional newbuildings. Our strategy is to continue to grow the
fleet with accretive transactions, and we see opportunities from time to time
to
potentially further enhance the value to shareholders through placing
newbuilding orders or acquiring modern second-hand vessels with no or shorter
term charters initially. The management’s objective will then be to find more
profitable long-term charters for these assets over time.
In
the third quarter, the fixed rate charter revenues are expected to increase
over
the second quarter as a consequence of the full cash flow and earnings effect
from the five container vessels on charter to Horizon Lines and the jack-up
drilling rig West Prospero. In addition, we also expect the five new
offshore supply vessels and the container vessel Montemar Europa, all
scheduled to be delivered in August 2007, to have a cash flow and earnings
effect in the last month of the quarter.
Contribution
from the profit share agreement with Frontline is based on the performance
of
the vessels in the market. The spot tanker market has been weaker in the third
quarter compared to the second quarter. However, several of the vessels on
charter to Frontline have been sub-chartered at higher levels than the current
spot market.
The
Company will continue to pursue new projects and additional investment
opportunities are currently under consideration. In addition to the recently
announced acquisitions, Ship Finance has significant capacity to invest in
new
projects without raising additional equity capital.
Forward
Looking Statements
This
press release contains 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 press release 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 world wide
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.
August
22, 2007
The
Board of Directors
Ship
Finance International Limited
Hamilton,
Bermuda
Questions
should be directed to:
Lars
Solbakken: Chief Executive Officer, Ship Finance Management AS
+47
23114006 / +47 91198844
Ole
B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47
23114011 / +47 90141243
SHIP
FINANCE INTERNATIONAL LIMITED
SECOND
QUARTER 2007 REPORT (UNAUDITED)
|
|
Three
months ended
|
|
|
Six
months ended
|
|
|
Twelve
months ended
|
|
INCOME
STATEMENT
(in
thousands of $ except per share data)
|
|
June
30, 2007
|
|
|
June
30, 2006
|
|
|
June
30, 2007
|
|
|
June
30, 2006
|
|
|
Dec.
31, 2006
(audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating revenues (1)
|
|
|
96,551
|
|
|
|
90,899
|
|
|
|
183,091
|
|
|
|
175,020
|
|
|
|
424,658
|
|
Loss
(gain) on sale of assets
|
|
|
(4,332 |
) |
|
|
(8,999 |
) |
|
|
(35,096 |
) |
|
|
(10,131 |
) |
|
|
(9,807 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
|
224
|
|
|
|
385
|
|
|
|
597
|
|
|
|
1,096
|
|
|
|
1,736
|
|
Ship
operating expenses
|
|
|
25,270
|
|
|
|
29,781
|
|
|
|
54,229
|
|
|
|
57,324
|
|
|
|
117,957
|
|
Administrative
expenses
|
|
|
1,706
|
|
|
|
937
|
|
|
|
3,722
|
|
|
|
1,458
|
|
|
|
6,584
|
|
Depreciation
|
|
|
3,197
|
|
|
|
3,646
|
|
|
|
6,195
|
|
|
|
8,005
|
|
|
|
14,490
|
|
Total
operating expenses
|
|
|
30,397
|
|
|
|
34,749
|
|
|
|
64,743
|
|
|
|
67,883
|
|
|
|
140,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
70,486
|
|
|
|
65,149
|
|
|
|
153,444
|
|
|
|
117,268
|
|
|
|
293,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,866
|
|
|
|
1,664
|
|
|
|
4,302
|
|
|
|
2,390
|
|
|
|
3,978
|
|
Interest
expense
|
|
|
(37,125 |
) |
|
|
(27,136 |
) |
|
|
(69,187 |
) |
|
|
(53,534 |
) |
|
|
(113,588 |
) |
Results
in associate
|
|
|
229
|
|
|
|
(73 |
) |
|
|
463
|
|
|
|
(73 |
) |
|
|
267
|
|
Other
financial items
|
|
|
3,034
|
|
|
|
3,671
|
|
|
|
5,823
|
|
|
|
11,049
|
|
|
|
(3,733 |
) |
Foreign
currency exchange gain (loss)
|
|
|
7
|
|
|
|
143
|
|
|
|
(67 |
) |
|
|
169
|
|
|
|
219
|
|
Taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(42 |
) |
Net
income
|
|
|
39,497
|
|
|
|
43,418
|
|
|
|
94,778
|
|
|
|
77,269
|
|
|
|
180,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share ($)
|
|
$ |
0.54
|
|
|
$ |
0.60
|
|
|
$ |
1.30
|
|
|
$ |
1.06
|
|
|
$ |
2.48
|
|
(1)
|
For
all vessels on finance lease, the fixed charter payments are split
in
three elements; ‘Interest income’, ‘Repayment of investment in finance
leases’ and ‘Service income’. The ‘Interest income’ and the ‘Service
income’ are included in the Company’s Income Statement. ‘Repayment of
investment in finance leases’ is not included in the Total operating
revenues in the Income Statement, and appears in the Statement of
Cashflows and in the Balance Sheet as a reduction of the balance
“Investment in finance leases”.
|
SHIP
FINANCE INTERNATIONAL LIMITED
SECOND
QUARTER 2007 REPORT (UNAUDITED)
BALANCE
SHEET
(in
thousands of $)
|
|
June
30, 2007
|
|
|
June
30, 2006(2)
|
|
|
December
31, 2006
(audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
99,116
|
|
|
|
33,347
|
|
|
|
64,569
|
|
Restricted
cash
|
|
|
11,707
|
|
|
|
10,847
|
|
|
|
12,937
|
|
Amount
due from related parties
|
|
|
14,021
|
|
|
|
7,646
|
|
|
|
63,024
|
|
Other
current assets
|
|
|
183,331
|
|
|
|
136,777
|
|
|
|
166,623
|
|
Long
term
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuildings
and vessel purchase options
|
|
|
259
|
|
|
|
-
|
|
|
|
7,658
|
|
Vessels
and equipment, net
|
|
|
366,399
|
|
|
|
242,121
|
|
|
|
238,891
|
|
Investment
in finance leases
|
|
|
2,061,048
|
|
|
|
1,813,243
|
|
|
|
1,958,691
|
|
Investment
in associate
|
|
|
4,069
|
|
|
|
45,895
|
|
|
|
3,698
|
|
Deferred
charges
|
|
|
16,995
|
|
|
|
44,515
|
|
|
|
16,848
|
|
Other
long-term assets
|
|
|
27,993
|
|
|
|
-
|
|
|
|
20,738
|
|
Total
assets
|
|
|
2,784,938
|
|
|
|
2,334,391
|
|
|
|
2,553,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term and current portion of long term interest bearing
debt
|
|
|
182,969
|
|
|
|
125,426
|
|
|
|
144,451
|
|
Other
current liabilities
|
|
|
20,246
|
|
|
|
27,635
|
|
|
|
14,793
|
|
Amount
due to related parties
|
|
|
42,118
|
|
|
|
-
|
|
|
|
14,411
|
|
Long
term
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
term interest bearing debt
|
|
|
1,903,591
|
|
|
|
1,620,129
|
|
|
|
1,770,749
|
|
Other
long term liabilities
|
|
|
1,227
|
|
|
|
604
|
|
|
|
8,743
|
|
Stockholders’
equity (1)
|
|
|
634,787
|
|
|
|
560,597
|
|
|
|
600,530
|
|
Total
liabilities and stockholders’ equity
|
|
|
2,784,938
|
|
|
|
2,334,391
|
|
|
|
2,553,677
|
|
(1)
|
As
of June 30, 2007 Stockholders’ equity excludes $233.2 million
of deferred equity which is being recognised over time. In connection
with
the initial and subsequent acquisitions of vessels from Frontline,
Ship
Finance was required to carry over Frontline’s historical book values of
the vessels to its books, and the excess of the aggregate purchase
price
above their historical book value was treated as deferred equity
and
recorded
as a reduction of the Investment in finance leases. This
deferred equity is amortised to Stockholders’ equity in line with the
charter payments received from Frontline.
|
(2)
|
As
of June 30 2006 Rig Finance Ltd. was not fully consolidated, but
accounted
for as an investment in associate company. Following further analysis,
the
subsidiary was fully consolidated effective December 31,
2006.
|
SHIP
FINANCE INTERNATIONAL LIMITED
SECOND
QUARTER 2007 REPORT (UNAUDITED)
|
|
Three
months ended
|
|
|
Six
months ended
|
|
|
Twelve
months ended
|
|
STATEMENT
OF CASHFLOWS
(in
thousands of $)
|
|
June
30, 2007
|
|
|
June
30, 2006(1)
|
|
|
June
30, 2007
|
|
|
June
30, 2006 (1)
|
|
|
Dec.
31, 2006
(audited)
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
39,497
|
|
|
|
43,418
|
|
|
|
94,778
|
|
|
|
77,269
|
|
|
|
180,799
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortisation
|
|
|
4,186
|
|
|
|
4,310
|
|
|
|
7,953
|
|
|
|
9,317
|
|
|
|
17,559
|
|
Unrealised
foreign currency exchange loss
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
Adjustment
of financial derivatives to market value
|
|
|
(3,442 |
) |
|
|
(3,834 |
) |
|
|
(6,983 |
) |
|
|
(8,922 |
) |
|
|
6,375
|
|
Loss
(gain) on sale of assets
|
|
|
(4,332 |
) |
|
|
(25,337 |
) |
|
|
(35,096 |
) |
|
|
(26,469 |
) |
|
|
(26,469 |
) |
Result
in associate
|
|
|
(228 |
) |
|
|
73
|
|
|
|
(463 |
) |
|
|
73
|
|
|
|
(4,205 |
) |
Stock
based compensation
|
|
|
159
|
|
|
|
-
|
|
|
|
311
|
|
|
|
-
|
|
|
|
49
|
|
Other
|
|
|
72
|
|
|
|
(991 |
) |
|
|
90
|
|
|
|
(2,750 |
) |
|
|
(5,140 |
) |
Change
in operating assets and liabilities
|
|
|
(6,954 |
) |
|
|
(16,078 |
) |
|
|
82,410
|
|
|
|
80,275
|
|
|
|
24,532
|
|
Net
cash provided by operating activities
|
|
|
28,958
|
|
|
|
1,563
|
|
|
|
143,000
|
|
|
|
128,795
|
|
|
|
193,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment
of investments in finance leases
|
|
|
46,200
|
|
|
|
30,271
|
|
|
|
82,126
|
|
|
|
62,405
|
|
|
|
136,760
|
|
Net
maturity (placement) of restricted cash
|
|
|
1,775
|
|
|
|
236
|
|
|
|
1,230
|
|
|
|
(9,272 |
) |
|
|
(11,362 |
) |
Sale
of vessel
|
|
|
-
|
|
|
|
-
|
|
|
|
142,018
|
|
|
|
40,466
|
|
|
|
75,606
|
|
Acquisition
of subsidiaries, net of cash acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(34,810 |
) |
|
|
(34,810 |
) |
Net
(investment in) proceeds from sale of newbuilding
|
|
|
(259 |
) |
|
|
2,000
|
|
|
|
7,399
|
|
|
|
-
|
|
|
|
(7,658 |
) |
Sale
(purchase) of vessels
|
|
|
(247,635 |
) |
|
|
-
|
|
|
|
(430,500 |
) |
|
|
-
|
|
|
|
(266,750 |
) |
Investment
in associate companies
|
|
|
(2 |
) |
|
|
(45,967 |
) |
|
|
92
|
|
|
|
(45,967 |
) |
|
|
508
|
|
Purchase
of short term investment
|
|
|
-
|
|
|
|
-
|
|
|
|
2,996
|
|
|
|
-
|
|
|
|
(3,000 |
) |
Other
investments
|
|
|
(2,008 |
) |
|
|
-
|
|
|
|
(2,008 |
) |
|
|
-
|
|
|
|
-
|
|
Net
cash (used in)provided by investing
activities
|
|
|
(201,929 |
) |
|
|
(13,460 |
) |
|
|
(196,647 |
) |
|
|
12,822
|
|
|
|
(110,706 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
of shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,212 |
) |
|
|
(7,212 |
) |
Proceeds
from long-term debt
|
|
|
209,162
|
|
|
|
25,000
|
|
|
|
336,350
|
|
|
|
25,000
|
|
|
|
312,588
|
|
Debt
fees paid
|
|
|
(500 |
) |
|
|
(87 |
) |
|
|
(1,905 |
) |
|
|
(88 |
) |
|
|
(1,047 |
) |
Repayment
of long-term debt
|
|
|
(42,638 |
) |
|
|
(30,006 |
) |
|
|
(164,989 |
) |
|
|
(73,103 |
) |
|
|
(190,716 |
) |
Cash
dividends paid
|
|
|
(40,001 |
) |
|
|
(36,370 |
) |
|
|
(79,283 |
) |
|
|
(72,742 |
) |
|
|
(149,123 |
) |
Deemed
dividends paid
|
|
|
(321 |
) |
|
|
(1,764 |
) |
|
|
(1,979 |
) |
|
|
(12,982 |
) |
|
|
(15,569 |
) |
Net
cash provided by (used in) financing activities
|
|
|
125,702
|
|
|
|
(43,227 |
) |
|
|
88,194
|
|
|
|
(141,127 |
) |
|
|
(51,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
|
(47,269 |
) |
|
|
(55,125 |
) |
|
|
34,547
|
|
|
|
490
|
|
|
|
31,712
|
|
Cash
and cash equivalents at start of period
|
|
|
146,385
|
|
|
|
88,472
|
|
|
|
64,569
|
|
|
|
32,857
|
|
|
|
32,857
|
|
Cash
and cash equivalents at end of period
|
|
|
99,116
|
|
|
|
33,347
|
|
|
|
99,116
|
|
|
|
33,347
|
|
|
|
64,569
|
|
|
(1)
|
As
of June 30 2006 Rig Finance
Ltd. was not fully consolidated, but accounted for as an investment
in
associate company. Following further analysis, the subsidiary was
fully
consolidated effective December 31,
2006.
|
SUBSIDIARY
ACCOUNTED FOR AS INVESTMENTS IN ASSOCIATES
SECOND
QUARTER 2007 REPORT (UNAUDITED)
FRONT
SHADOW INC
|
|
Three
months ended
|
|
|
Three
months ended
|
|
INCOME
STATEMENT (2)
(in
thousands of $)
|
|
June
30,
2007
|
|
|
March
31,
2007
|
|
|
|
|
|
|
|
|
Total
operating revenue (1)
|
|
|
552
|
|
|
|
562
|
|
Total
operating expenses
|
|
|
(3 |
) |
|
|
-
|
|
Operating
income
|
|
|
549
|
|
|
|
562
|
|
Interest
expense
|
|
|
(324 |
) |
|
|
(333 |
) |
Other
financial items
|
|
|
3
|
|
|
|
6
|
|
Net
income
|
|
|
228
|
|
|
|
235
|
|
(1)
|
Revenue
is comprised of interest income derived from a long-term finance
lease
with Golden Ocean. The lease is for a period of 10 years and Golden
Ocean
has various call options to purchase the vessel from our subsidiary
Front
Shadow Inc. At the end of the lease, Ship Finance also has a put
option on
Golden Ocean.
|
(2)
|
The
Charter for Golden Shadow is accounted for as a finance
lease. A part of the charter hire is classified as ‘Repayment
of investment in finance leases’ and is not included in the Total
operating revenues in the Income
Statement. ‘Repayment of investment in finance leases’ was $666,000 for
the six months ended June 30, 2007, and $323,000 for the three months
ended March 31, 2007
|
SUBSIDIARY
ACCOUNTED FOR AS INVESTMENTS IN ASSOCIATES
SECOND
QUARTER 2007 REPORT (UNAUDITED)
FRONT
SHADOW INC
BALANCE
SHEET
(in
thousands of $)
|
|
June
30,
2007
|
|
|
December
31,
2007
|
|
ASSETS
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
952
|
|
|
|
461
|
|
Other
current assets
|
|
|
1,462
|
|
|
|
1,911
|
|
Long
term
|
|
|
|
|
|
|
|
|
Investment
in finance leases
|
|
|
25,898
|
|
|
|
26,632
|
|
Deferred
charges
|
|
|
88
|
|
|
|
73
|
|
Total
assets
|
|
|
28,400
|
|
|
|
29,077
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
Short
term and current portion of long term interest bearing
debt
|
|
|
2,060
|
|
|
|
2,060
|
|
Other
current liabilities
|
|
|
60
|
|
|
|
79
|
|
Amounts
due to related party (1)
|
|
|
5,940
|
|
|
|
6,031
|
|
Long
term
|
|
|
|
|
|
|
|
|
Long
term interest bearing debt
|
|
|
19,610
|
|
|
|
20,640
|
|
Stockholders
equity
|
|
|
730
|
|
|
|
267
|
|
Total
liabilities and stockholders’ equity
|
|
|
28,400
|
|
|
|
29,077
|
|
(1)
|
Comprised
of a seller’s credit received from Golden Ocean at the time the vessel was
purchased. The seller’s credit is treated as a non-interest bearing
loan.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorised.
Ship
Finance International Limited
Dated: August
22,
2007 By
/s/ Lars
Solbakken
Name: Lars
Solbakken
Title: Chief
Executive Officer
Ship
Finance Management AS