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 UNDER THE SECURITIES
EXCHANGE ACT OF 1934
For the
month of December 2008
Commission
File Number: 001-32199
|
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 offices)
|
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: ___
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 November 28, 2008, announcing the Company’s
financial results for the third quarter of 2008.
Exhibit
1
 |
Ship
Finance International Limited (NYSE: SFL) - Earnings Release
Reports
third quarter 2008 results and increased quarterly dividend of $0.60 per
share
Hamilton,
Bermuda, November 28, 2008. Ship Finance International Limited (“Ship
Finance” or the “Company”) today announced its financial results for the quarter
ended September 30, 2008.
Highlights
|
·
|
Declared
an increased quarterly cash dividend of $0.60 per share. The Company has
now declared stable or increasing dividends for 19 consecutive
quarters.
|
|
·
|
Reported
net income for the quarter of $47.4 million, or $0.65 per share, including
profit share of $28.5 million, or $0.39 per share, and a $10.4 million, or
$0.14 per share, non-cash negative adjustment in mark-to-market of
swaps.
|
|
·
|
The
ultra-deepwater drillship West Polaris was delivered in July 2008 and
commenced its 15-year bareboat charter to Seadrill Limited
(“Seadrill”).
|
|
·
|
Announced
the sale of two newbuilding Suezmax tankers for a record $111 million per
vessel. The transaction is expected to generate a book profit of
approximately $68 million, or $34 million per vessel, to be recognized at
delivery of the vessels in 2009.
|
|
·
|
Announced
the $1.7 billion acquisition of two ultra-deepwater drilling rigs in
combination with 15-year
bareboat charters to Seadrill. The drilling rigs were delivered to Ship
Finance in November 2008.
|
|
·
|
The
second of two 17,000 dwt chemical tanker newbuildings was delivered in
October 2008 and commenced its 10-year bareboat charter to Bryggen
Shipping & Trading AS
(“Bryggen”).
|
Dividends
and Results for the Quarter ended September 30, 2008
The Board
of Directors has declared a quarterly cash dividend of $0.60 per share. The
dividend will be paid on or about January 7, 2009 to shareholders of record as
of December 23, 2008. The ex-dividend date will be December 19,
2008.
The
Company reported total operating revenues of $114.3 million, or $1.57 per share,
in the third quarter. Net operating income for the quarter was $80.3 million, or
$1.10 per share, and net income was $47.4 million, or $0.65 per
share.
As the
majority of the Company’s assets are accounted for as finance leases, a
significant portion of the charter hire is classified as ‘Repayment of
investment in finance leases’ and is deducted from the revenues in the Company’s
Income Statement. For the third quarter, this amounted to $46.6 million or $0.64
per share.
Under US
GAAP, the drillship West Polaris and the Panamax dry bulk vessel Golden Shadow
are accounted for as investment in associates. Consequently, the ‘net income’
from these 100% owned vessel owning subsidiaries are recognized in the
consolidated income statement of Ship Finance as ‘results in
associate’.
The
profit share accrued in the third quarter was $28.5 million, or $0.39 per share,
compared to $33.1 million, or $0.46 per share, in the second
quarter.
There was
a $10.4 million, or $0.14 per share, negative adjustment in mark-to-market of
swaps in the third quarter, compared to a $3.2 million, or $0.04 per share,
positive adjustment in the second quarter.
Liquidity
and Capital Expenditure
As of
September 30, 2008, the Company had $118.7 million in free cash.
The
accrued profit share year to date 2008 is $95.3 million, of which $60 million
has been paid to Ship Finance in November 2008. The remaining $35.3 million plus
profit share that may accrue in 4Q-2008 is payable in the first quarter of 2009.
Subsequent to the quarter end, the Company has arranged a new secured loan
facility with net proceeds of approximately $72 million.
The
Company’s capital commitments relating to newbuildings and acquisitions are
estimated as follows:
|
Period:
|
4Q-2008
|
2009
|
2010
|
Total
|
|||||||
|
Gross
investment
|
$1,720
|
mill.
|
$581
|
mill.
|
$98
|
mill.
|
$2,399
|
mill.
|
|||
|
Committed
financing
|
$(1,540)
|
mill.
|
$(380)
|
mill.
|
-
|
$(1,920)
|
mill.
|
||||
|
Contracted
sale of vessels*
|
-
|
$(217)
|
mill.
|
-
|
$(217)
|
mill.
|
|||||
|
Net
investment
|
$180
|
mill.
|
$(16)
|
mill.
|
$98
|
mill.
|
$262
|
mill.
|
|||
All
investments in 4Q-2008 have been completed and the committed financings have
been drawn. The investments in 2009 include a $250 million payment to Seadrill
covering the final payment of West Taurus which is fully covered by a committed
financing. Further investments in 2009 include two dry bulk carriers we have
agreed to acquire from subsidiaries of Golden Ocean Group Limited and yard
installments on our newbuildings. The investments in 2010 are related to the
remaining installments on our container newbuildings and are expected to be
financed with debt. The delivery dates for vessels under construction may be
adjusted, which in turn may impact the timing of our investments.
Business Update
As of
September 30, 2008, and including recently announced transactions, the gross
fixed-rate charter backlog is in excess of $8.5 billion, with average remaining
charter term of 10.1 years, or 13.7 years if weighted by charter revenue. Some
of our charters have purchase options, which, if exercised, will reduce the
fixed charter backlog and average remaining charter term.
As of
September 30, 2008, 31 of our crude oil tankers and eight of our oil/bulk/ore
(“OBO”) vessels operate on long term contracts to subsidiaries of Frontline Ltd.
(“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 a base charter rate. The average vessel earnings have
consistently been above the base charter rates since the Company’s inception in
2003, and the profit share accumulated in the third quarter was $28.5
million.
The
average daily TCEs earned by Frontline in the third quarter in the spot and time
charter period market from the Company’s VLCCs, Suezmax tankers and OBOs were
approximately $72,900, $76,100 and $44,100, respectively. These numbers exclude
off-hire days and the corresponding average daily TCEs in the second quarter of
2008 were approximately $83,700, $76,300 and $44,100, respectively.
In July
2008, we acquired the ultra-deepwater drillship West Polaris from a
subsidiary of Seadrill for an approximate project cost of $850 million. West Polaris immediately
commenced its 15-year bareboat charter to Seadrill and is employed on a four
year sub-charter to a subsidiary of Exxon Mobil Corporation. Net of interest
expense and debt repayment, the average annual net cash contribution the first
five years will be approximately $23 million, or $0.32 per share. The drillship
is accounted for as a finance lease, and the vessel owning subsidiary is
classified as ‘investment in associate’.
In July
2008, the Company announced the sale of two newbuilding Suezmax vessels at
record high levels. The gross sales price was agreed at $111 million per vessel,
and net of construction costs and broker commissions we expect to recognize a
book profit of approximately $68 million, or $0.93 per share in total. The
vessels are currently under construction in China, and are scheduled to be
delivered to the new owner in 2009, immediately after delivery from the
shipyard.
In
September 2008, the Company announced the acquisition of West Hercules and West Taurus, two
ultra-deepwater semi-submersible drilling rigs, from subsidiaries of Seadrill.
Both drilling rigs were delivered in November 2008 for an approximate project
cost of $1.7 billion. Most of the purchase price was paid to Seadrill in
November 2008 except for $250 million which is due in February 2009. The average
annual net cash contribution over the first five years, after estimated interest
expense and debt repayment will be approximately $46.5 million, or $0.63 per
share, per year. The drilling rigs will be accounted for as finance leases, and
the vessel owning subsidiary will be classified as ‘investment in
associate’.
In
October 2008, the Company took delivery of the second chemical tanker, SC
Guangzhou, from Bryggen. The first vessel was delivered in April 2008 and both
vessels are on 10-year bareboat charters to Bryggen with sub-charters to
Sinochem. The charters are classified as operating leases.
In
November 2008, the Company announced the termination of an agreement to acquire
three seismic vessels from SCAN Geophysical ASA ("SCAN") with 12-year charters
attached. The transaction was announced in March 2007, and the plan was to
acquire the vessels immediately after delivery from the shipyard. In light of
significantly delayed deliveries, Ship Finance and SCAN have agreed to terminate
the agreement.
Corporate
and Other Matters
At the
end of the third quarter 2008, $449 million of the 8.5% Senior Notes due 2013
were outstanding of which $148 million were controlled by the Company through
Bond Swap Agreements. The financing cost on the Senior Notes held
under Bond Swap Agreements is effectively reduced to LIBOR plus a
margin.
The
Company has used Total Return Swaps (“TRS”) to effectively achieve the economic
effect of repurchasing shares. As of September 30, 2008, the Company controlled
approximately 692,000 shares through the TRS agreements at an average cost of
$25.66 per share (including funding costs). The shares are legally owned by the
banks who provide the TRS agreements, and no shares have been
cancelled.
Subsequent
to quarter end, the value of our bonds and shares held under TRS agreements has
declined, and we have therefore deposited approximately $30 million as
additional restricted cash security. These funds will be released to the Company
if the value of our bonds and/or shares should increase.
Strategy
and Outlook
Including
recently announced acquisitions, the Company has an operating fleet of 61
vessels and rigs, and has contracted to acquire nine newbuildings.
The
Company’s objective has been to reduce the risks for its shareholders by
investing in different sectors of the shipping and oil service industries and by
having a diversified client base. During the last 12 months, the Company has
committed to new investments of approximately $2.7 billion and these investments
have significantly increased the Company’s fixed charter revenue backlog. We
will have full cash flow and profit and loss effect from these investments as
from mid February 2009.
In the
Company’s view, the recent $1.7 billion acquisition of West Hercules and West Taurus in combination
with a $1.4 billion bank financing demonstrates the Company’s ability to
structure accretive transactions in an otherwise challenging financing
environment. Our focus has been on acquiring assets with immediate cash flow,
and after taking delivery of the two drilling rigs, our remaining newbuilding
commitments are low compared to our overall fleet.
We have
recently experienced significant turmoil in the international credit markets and
generally softer shipping markets. Our main investments are, however, in the
crude oil shipping and deepwater drilling markets, which have remained
relatively strong. Further our substantial contract backlog provides added
stability in an otherwise turbulent environment.
The
softer shipping markets are expected to provide a number of interesting
investment opportunities in the coming year. We are currently positioning
ourselves to take advantage of these opportunities, but at the same time we are
committed to manage the company in a conservative manner to also protect the
downside for our shareholders.
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, data contained in the Company’s records and other data
available from third parties. 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 our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the strength of world
economies, fluctuations in currencies and interest rates, general market
conditions including fluctuations in charter hire rates and vessel values,
changes in demand in the markets in which we operate, changes in demand
resulting from changes in OPEC's petroleum production levels and world wide oil
consumption and storage, developments regarding the technologies relating to oil
exploration, changes in market demand in countries which import commodities and
finished goods and changes in the amount and location of the production of those
commodities and finished goods, increased inspection procedures and more
restrictive import and export controls, changes in our operating expenses,
including bunker prices, drydocking and insurance costs, performance of our
charterers and other counterparties with whom we deal, timely delivery of
vessels under construction within the contracted price, 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 Securities and Exchange
Commission.
November
28, 2008
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
THIRD
QUARTER 2008 REPORT (UNAUDITED)
|
INCOME
STATEMENT
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
(in
thousands of $
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
|||||||||||||||
|
except
per share data)
|
2008
|
2007
|
2008
|
2007
|
(audited)
|
|||||||||||||||
|
Charter
revenues - operating lease
|
18,952 | 13,793 | 55,957 | 38,244 | 57,516 | |||||||||||||||
|
Charter
revenues - finance lease
|
113,415 | 119,022 | 372,005 | 344,070 | 461,942 | |||||||||||||||
|
-
less revenues classified as Repaymentof investment in
finance
leases
|
(46,599 | ) | (44,839 | ) | (166,207 | ) | (126,965 | ) | (173,193 | ) | ||||||||||
|
Profit
share income
|
28,530 | 5,455 | 95,311 | 21,173 | 52,527 | |||||||||||||||
|
Total
operating revenues
|
114,298 | 93,431 | 357,066 | 276,522 | 398,792 | |||||||||||||||
|
Gain
/ (loss) on sale of assets
|
- | - | 17,377 | 35,096 | 41,669 | |||||||||||||||
|
Vessel
operating expenses
|
(24,952 | ) | (25,930 | ) | (74,942 | ) | (80,756 | ) | (107,161 | ) | ||||||||||
|
Administrative
expenses
|
(1,720 | ) | (1,482 | ) | (7,252 | ) | (5,203 | ) | (7,783 | ) | ||||||||||
|
Depreciation
|
(7,323 | ) | (6,079 | ) | (20,516 | ) | (12,274 | ) | (20,636 | ) | ||||||||||
|
Total
operating expenses
|
(33,995 | ) | (33,491 | ) | (102,710 | ) | (98,233 | ) | (135,580 | ) | ||||||||||
|
Operating
income
|
80,303 | 59,940 | 271,733 | 213,385 | 304,881 | |||||||||||||||
|
Interest
income
|
498 | 1,010 | 2,407 | 5,312 | 6,781 | |||||||||||||||
|
Interest
expense
|
(29,966 | ) | (26,534 | ) | (93,307 | ) | (95,721 | ) | (130,401 | ) | ||||||||||
|
Results
in associate(1)
|
7,091 | 227 | 7,552 | 689 | 923 | |||||||||||||||
|
Other
financial items
|
(200 | ) | (127 | ) | (590 | ) | (1,286 | ) | (1,902 | ) | ||||||||||
|
Mark
to Market of Derivatives
|
(10,408 | ) | (13,997 | ) | (9,372 | ) | (7,012 | ) | (12,557 | ) | ||||||||||
|
Foreign
currency exchange gain/loss
|
120 | 46 | 106 | (21 | ) | (17 | ) | |||||||||||||
|
Taxes
|
- | - | - | - | - | |||||||||||||||
|
Net
income
|
47,438 | 20,565 | 178,529 | 115,346 | 167,708 | |||||||||||||||
|
Basic
earnings per share ($)
|
$0.65 | $0.28 | $2.45 | $1.59 | $2.31 | |||||||||||||||
|
Weighted
average number of shares
|
72,743,737 | 72,743,737 | 72,743,737 | 72,743,737 | 72,743,737 | |||||||||||||||
|
Common
shares outstanding
|
72,743,737 | 72,743,737 | 72,743,737 | 72,743,737 | 72,743,737 | |||||||||||||||
|
(1)
|
Two
of our 100% owned subsidiaries are accounted for as “investment in
associates”, and only the “net income” from these subsidiaries are
therefore included in our consolidated Income
Statement.
|
SHIP
FINANCE INTERNATIONAL LIMITED
THIRD
QUARTER 2008 REPORT (UNAUDITED)
|
BALANCE
SHEET
|
Sept,
30
|
Sept,
30
|
Dec
31, 2007
|
|||||||||
|
(in
thousands of $)
|
2008
|
2007
|
(audited)
|
|||||||||
|
ASSETS
|
||||||||||||
|
Short
term
|
||||||||||||
|
Cash
and cash equivalents
|
118,657 | 45,426 | 78,255 | |||||||||
|
Restricted
cash
|
36,340 | 22,670 | 26,983 | |||||||||
|
Amount
due from related parties
|
91,138 | 16,271 | 42,014 | |||||||||
|
Other
current assets
|
187,619 | 197,828 | 186,343 | |||||||||
|
Long
term
|
||||||||||||
|
Newbuildings
|
66,036 | 45,705 | 46,259 | |||||||||
|
Vessels
and equipment, net
|
564,239 | 562,119 | 583,244 | |||||||||
|
Investment
in finance leases
|
1,954,295 | 2,004,724 | 1,963,470 | |||||||||
|
Investment
in associate(1)
|
158,388 | 4,296 | 4,530 | |||||||||
|
Deferred
charges
|
16,293 | 17,413 | 16,922 | |||||||||
|
Other
long-term assets
|
8,473 | 22,069 | 2,008 | |||||||||
|
Total
assets
|
3,201,478 | 2,938,521 | 2,950,028 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
Short
term
|
||||||||||||
|
Short
term and current portion of long term interest bearing
debt
|
180,600 | 189,742 | 179,428 | |||||||||
|
Other
current liabilities
|
58,879 | 31,247 | 42,804 | |||||||||
|
Amount
due to related parties
|
6,394 | 5,353 | 5,693 | |||||||||
|
Long
term
|
||||||||||||
|
Long
term interest bearing debt
|
2,245,528 | 2,077,390 | 2,090,566 | |||||||||
|
Other
long term liabilities
|
34,314 | 25,175 | 17,060 | |||||||||
|
Stockholders’
equity (2)
|
675,763 | 609,614 | 614,477 | |||||||||
|
Total
liabilities and stockholders’ equity
|
3,201,478 | 2,938,521 | 2,950,028 | |||||||||
|
(1)
|
Two
100% owned subsidiaries are accounted for as ‘investments in
associates’.
|
|
(2)
|
As
of September, 2008 Stockholders’ equity excludes $217.2 million of
deferred equity which is being recognized over time. The deferred equity
contribution is shown as a reduction in the net investment in finance
leases in the balance sheet, and results from the related party nature of
both the transfer of vessels from and the subsequent charter to Frontline.
This deferred equity is amortized to Stockholders’ equity in line with the
charter payments received from
Frontline.
|
SHIP
FINANCE INTERNATIONAL LIMITED
THIRD
QUARTER 2008 REPORT (UNAUDITED)
|
STATEMENT
OF CASHFLOWS
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
(in
thousands of $)
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
(audited)
|
||||||||||||||||
|
OPERATING
ACTIVITIES
|
||||||||||||||||||||
|
Net
income
|
47,438 | 20,565 | 178,529 | 115,346 | 167,708 | |||||||||||||||
|
Adjustments
to reconcile net income to net cash provided by
operating activities:
|
||||||||||||||||||||
|
Depreciation
and amortization
|
7,997 | 6,771 | 22,661 | 14,724 | 23,554 | |||||||||||||||
|
Adjustment
of financial derivatives to market value
|
10,408 | 13,997 | 9,372 | 7,012 | 12,557 | |||||||||||||||
|
Gain
on sale of assets
|
- | - | (17,377 | ) | (35,096 | ) | (41,669 | ) | ||||||||||||
|
Result
in associate
|
(7,091 | ) | (227 | ) | (7,552 | ) | (689 | ) | (923 | ) | ||||||||||
|
Stock
based compensation
|
403 | 159 | 1,124 | 470 | 785 | |||||||||||||||
|
Other
|
(1,057 | ) | (12,755 | ) | (3,131 | ) | (28,384 | ) | (51,278 | ) | ||||||||||
|
Change
in operating assets and liabilities
|
(25,974 | ) | (10,531 | ) | (49,131 | ) | 87,596 | 91,684 | ||||||||||||
|
Net
cash provided by operating activities
|
32,124 | 17,979 | 134,495 | 160,979 | 202,418 | |||||||||||||||
|
INVESTING
ACTIVITIES
|
||||||||||||||||||||
|
Repayment
of investments in finance leases
|
46,356 | 44,839 | 165,493 | 126,965 | 173,193 | |||||||||||||||
|
Net
placement of restricted cash
|
(1,413 | ) | (10,963 | ) | (9,357 | ) | (9,733 | ) | (14,046 | ) | ||||||||||
|
Proceeds
from sale of vessel/new buildings
|
- | (13,191 | ) | 23,005 | 128,827 | 152,659 | ||||||||||||||
|
Net
investment in newbuildings
|
(17,882 | ) | (37,220 | ) | (18,616 | ) | (37,479 | ) | (47,383 | ) | ||||||||||
|
Purchase
of vessels
|
(1 | ) | (194,458 | ) | (134,101 | ) | (617,300 | ) | (644,287 | ) | ||||||||||
|
Investment
in associate companies
|
(146,304 | ) | - | (146,306 | ) | 92 | 92 | |||||||||||||
|
Purchase
of short term investment
|
- | 4 | - | 3,000 | 3,000 | |||||||||||||||
|
Other
investments
|
(4,445 | ) | - | (6,465 | ) | (2,008 | ) | (2,008 | ) | |||||||||||
|
Net
cash (used in) provided by investing activities
|
(123,689 | ) | (210,989 | ) | (126,347 | ) | (407,636 | ) | (378,780 | ) | ||||||||||
|
FINANCING
ACTIVITIES
|
||||||||||||||||||||
|
Proceeds
from long-term debt
|
206,973 | 226,750 | 336,473 | 563,100 | 620,225 | |||||||||||||||
|
Expenses
paid in connection with securing finance
|
(718 | ) | (1,198 | ) | (2,088 | ) | (3,103 | ) | (3,432 | ) | ||||||||||
|
Repayment
of long-term debt
|
(42,769 | ) | (46,177 | ) | (180,339 | ) | (211,166 | ) | (265,430 | ) | ||||||||||
|
Cash
settlement of derivatives
|
2,507 | - | 1,149 | |||||||||||||||||
|
Cash
dividends paid
|
(42,192 | ) | (40,055 | ) | (122,937 | ) | (119,338 | ) | (159,335 | ) | ||||||||||
|
Deemed
dividends paid
|
- | - | - | (1,979 | ) | (1,983 | ) | |||||||||||||
|
Net
cash provided by (used in) financing activities
|
123,801 | 139,320 | 32,258 | 227,514 | 190,045 | |||||||||||||||
|
Net
(decrease) increase in cash and cash equivalents
|
32,236 | (53,690 | ) | 40,406 | (19,143 | ) | 13,683 | |||||||||||||
|
Cash
and cash equivalents at start of period
|
86,422 | 99,116 | 78,252 | 64,569 | 64,569 | |||||||||||||||
|
Cash
and cash equivalents at end of period
|
118,658 | 45,426 | 118,658 | 45,426 | 78,252 | |||||||||||||||
SUBSIDIARIES
ACCOUNTED FOR AS INVESTMENT IN ASSOCIATES
THIRD
QUARTER 2008 REPORT (UNAUDITED)
SFL
West Polaris Limited (West Polaris)
|
INCOME
STATEMENT
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
(in
thousands of $)
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
(audited)
|
||||||||||||||||
|
Total
operating revenue (1)
|
12,714 | - | 12,714 | - | - | |||||||||||||||
|
Total
operating expenses
|
(132 | ) | - | (132 | ) | - | - | |||||||||||||
|
Operating
income
|
12,582 | - | 12,582 | - | - | |||||||||||||||
|
Interest
expense
|
(5,468 | ) | - | (5,468 | ) | - | - | |||||||||||||
|
Other
financial items
|
(246 | ) | - | (246 | ) | - | - | |||||||||||||
|
Net income(2)
|
6,868 | - | 6,868 | - | - | |||||||||||||||
|
(1)
|
The
vessel is accounted for as a finance lease asset, and the charter hire is
split in ‘Finance lease interest income’ and ‘Repayment of investment in
finance leases’. The portion classified as ‘Finance lease interest income’
is included in ‘Total operating revenues’, while ‘Repayment of investment
in finance leases’ appears in the Statement of Cashflows
only.
|
|
(2)
|
Net
income from this 100% owned subsidiary appears in the Company’s
consolidated income statement as ‘Results in
associate’.
|
|
BALANCE
SHEET
|
Sept
30,
|
Sept
30,
|
Dec
31,
|
|||||||||
|
(in
thousands of $)
|
2008
|
2007
|
2007
|
|||||||||
|
ASSETS
|
||||||||||||
|
Short
term
|
||||||||||||
|
Cash
and cash equivalents
|
76 | - | - | |||||||||
|
Other
current assets
|
68,555 | - | - | |||||||||
|
Long
term
|
||||||||||||
|
Investment
in finance leases
|
781,685 | - | - | |||||||||
|
Deferred
charges
|
4,142 | - | - | |||||||||
|
Total
assets
|
854,458 | - | - | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
Short
term
|
||||||||||||
|
Short
term and current portion of long term interest bearing
debt
|
63,479 | - | - | |||||||||
|
Other
current liabilities
|
4,096 | - | - | |||||||||
|
Amounts
due to related parties
|
251,304 | - | - | |||||||||
|
Long
term
|
||||||||||||
|
Long
term interest bearing debt
|
386,521 | - | - | |||||||||
|
Stockholders
equity(1)
|
149,058 | - | - | |||||||||
|
Total
liabilities and stockholders’ equity
|
854,458 | - | - | |||||||||
|
(1)
|
Stockholders’
equity in this 100% owned subsidiary appears in the Company’s consolidated
‘Balance sheet’ as ‘Investments in
associate’.
|
SUBSIDIARIES
ACCOUNTED FOR AS INVESTMENT IN ASSOCIATES
THIRD
QUARTER 2008 REPORT (UNAUDITED)
SFL
West Polaris Limited (West Polaris)
|
STATEMENT
OF CASHFLOWS
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
||||||||||||||||
|
(in
thousands of $)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||
|
OPRATING
ACTIVITIES
|
||||||||||||||||||||
|
Net
income
|
6,868 | - | 6,868 | - | - | |||||||||||||||
|
Adjustments
to reconcile net income to net cash
|
||||||||||||||||||||
|
procvided
by operating activities:
|
||||||||||||||||||||
|
Depreciation
and amortisation
|
195 | - | 195 | - | - | |||||||||||||||
|
Additional
income accrued in initial period
|
(3,089 | ) | - | (3,089 | ) | - | - | |||||||||||||
|
Change
in operating assets and liabilities
|
250,439 | - | 250,439 | - | - | |||||||||||||||
|
Net
cash Provided by operating activities
|
254,413 | - | 254,413 | - | - | |||||||||||||||
|
INVESTING
ACTIVITIES
|
||||||||||||||||||||
|
Purchase
of vessel
|
(845,000 | ) | - | (845,000 | ) | - | - | |||||||||||||
|
Repayment
of finance lease
|
- | - | - | - | - | |||||||||||||||
|
Net
cash provided by investing activities
|
(845,000 | ) | - | (845,000 | ) | - | - | |||||||||||||
|
FINANCING
ACTIVITIES
|
||||||||||||||||||||
|
Debt
fees paid
|
(4,337 | ) | - | (4,337 | ) | - | - | |||||||||||||
|
Procedes
from long term debt
|
450,000 | - | 450,000 | - | - | |||||||||||||||
|
Equity
investment by parent company
|
145,000 | - | 145,000 | - | - | |||||||||||||||
|
Net
cash used in financing activities
|
590,663 | - | 590,663 | - | - | |||||||||||||||
|
Net
increase in cash and cash equivalents
|
76 | - | 76 | - | - | |||||||||||||||
|
Cash
at beginning of period
|
- | - | - | - | - | |||||||||||||||
|
Cash
and cash equivalents at period end
|
76 | - | 76 | - | - | |||||||||||||||
SUBSIDIARIES
ACCOUNTED FOR AS INVESTMENT IN ASSOCIATES
THIRD
QUARTER 2008 REPORT (UNAUDITED)
Front
Shadow Inc (Golden Shadow)
|
INCOME
STATEMENT
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
(in
thousands of $)
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
(audited)
|
||||||||||||||||
|
Total
operating revenue (1)
|
382 | 549 | 1,219 | 1,663 | 2,193 | |||||||||||||||
|
Total
operating expenses
|
- | - | (3 | ) | (3 | ) | (4 | ) | ||||||||||||
|
Operating
income
|
382 | 549 | 1,216 | 1,660 | 2,189 | |||||||||||||||
|
Interest
expense
|
(162 | ) | (333 | ) | (547 | ) | (996 | ) | (1,269 | ) | ||||||||||
|
Other
financial items
|
3 | 10 | 15 | 25 | 3 | |||||||||||||||
|
Net income(2)
|
223 | 226 | 684 | 689 | 923 | |||||||||||||||
|
(1)
|
The
vessel is accounted for as a finance lease asset, and the charter hire is
split in ‘Finance lease interest income’ and ‘Repayment of investment in
finance leases’. The portion classified as ‘Finance lease interest income’
is included in ‘Total operating revenues’, while ‘Repayment of investment
in finance leases’ appears in the Statement of Cashflows
only.
|
|
(2)
|
Net
income from this 100% owned subsidiary appears in the Company’s
consolidated income statement as ‘Results in
associate’.
|
|
BALANCE
SHEET
|
Sept
30,
|
Sept
30,
|
Dec
31, 2007
|
|||||||||
|
(in
thousands of $)
|
2008
|
2007
|
(audited)
|
|||||||||
|
ASSETS
|
||||||||||||
|
Short
term
|
||||||||||||
|
Cash
and cash equivalents
|
839 | 618 | 1,103 | |||||||||
|
Other
current assets
|
1,607 | 1,493 | 1,522 | |||||||||
|
Long
term
|
||||||||||||
|
Investment
in finance leases
|
23,900 | 25,507 | 25,110 | |||||||||
|
Deferred
charges
|
76 | 85 | 83 | |||||||||
|
Total
assets
|
26,422 | 27,703 | 27,818 | |||||||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||
|
Short
term
|
||||||||||||
|
Short
term and current portion of long term interest bearing
debt
|
2,060 | 2,060 | 2,060 | |||||||||
|
Other
current liabilities
|
25 | 167 | 49 | |||||||||
|
Amounts
due to related party
|
5,943 | 5,940 | 5,940 | |||||||||
|
Long
term
|
||||||||||||
|
Long
term interest bearing debt
|
16,520 | 18,580 | 18,580 | |||||||||
|
Stockholders
equity (1)
|
1,874 | 956 | 1,189 | |||||||||
|
Total
liabilities and stockholders’ equity
|
26,422 | 27,703 | 27,818 | |||||||||
|
(1)
|
Stockholders’
equity and a part of ‘Amounts due to related party’ in this 100% owned
subsidiary appears in the Company’s consolidated ‘Balance sheet’ as
‘Investments in associate’.
|
SUBSIDIARIES
ACCOUNTED FOR AS INVESTMENT IN ASSOCIATES
THIRD
QUARTER 2008 REPORT (UNAUDITED)
Front
Shadow Inc (Golden Shadow)
|
STATEMENT
OF CASHFLOWS
|
Three
months ended
|
Nine
months ended
|
Full
year
|
|||||||||||||||||
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
2007
|
||||||||||||||||
|
(in
thousands of $)
|
2008
|
2007
|
2008
|
2007
|
(audited)
|
|||||||||||||||
|
OPRATING
ACTIVITIES
|
||||||||||||||||||||
|
Net
income
|
223 | 226 | 684 | 689 | 923 | |||||||||||||||
|
Adjustments
to reconcile net income to net cash
|
||||||||||||||||||||
|
procvided
by operating activities:
|
||||||||||||||||||||
|
Depreciation
and amortisation
|
2 | 2 | 7 | (12 | ) | 10 | ||||||||||||||
|
Change
in operating assets and liabilities
|
13 | 107 | (23 | ) | 605 | 486 | ||||||||||||||
|
Net
cash Provided by operating activities
|
238 | 335 | 668 | 1,282 | 1,419 | |||||||||||||||
|
INVESTING
ACTIVITIES
|
||||||||||||||||||||
|
Repayment
of finance lease
|
389 | 361 | 1,125 | 1,027 | 1,394 | |||||||||||||||
|
Net
cash provided by investing activities
|
389 | 361 | 1,125 | 1,027 | 1,394 | |||||||||||||||
|
FINANCING
ACTIVITIES
|
||||||||||||||||||||
|
Repayment
of long term debt
|
(1,030 | ) | (1,030 | ) | (2,060 | ) | (2,060 | ) | (2,060 | ) | ||||||||||
|
Debt
fees paid
|
- | (20 | ) | |||||||||||||||||
|
Repaid
to parent conmpany
|
- | - | 3 | (92 | ) | (91 | ) | |||||||||||||
|
Net
cash used in financing activities
|
(1,030 | ) | (1,030 | ) | (2,057 | ) | (2,152 | ) | (2,171 | ) | ||||||||||
|
Net
increase in cash and cash equivalents
|
(403 | ) | (334 | ) | (264 | ) | 157 | 642 | ||||||||||||
|
Cash
at beginning of period
|
1,242 | 952 | 1,103 | 461 | 461 | |||||||||||||||
|
Cash
and cash equivalents at period end
|
839 | 618 | 839 | 618 | 1,103 | |||||||||||||||
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
authorized.
| SHIP FINANCE INTERNATIONAL LIMITED | |||
| (registrant) | |||
|
Dated: December
2, 2008
|
By:
|
/s/ Lars
Solbakken
|
|
|
Name:
|
Lars
Solbakken
|
||
|
Title:
|
Chief
Executive Officer
|
||
|
Ship
Finance Management AS
|
|||
SK 23153 0001
943053