Ship Finance International Acquires Two Post-Panamax Containerships
Ship Finance International Limited (NYSE: SFL) (“Ship Finance” or the “Company”) today announced the agreement to acquire two 5,800 teu post-panamax container vessels built in 2001/2002 in combination with long-term charters.
The vessels are expected to be delivered to SFL over the course of the next few weeks, and the annual EBITDA contribution is estimated to be approximately $5.5 million on average during the charter period. The charters include a purchase option with profit share after 5 years.
The Company is also pleased to announce the settlement of a claim relating to four Handysize dry bulk carriers which were redelivered to us in 2012, before the final maturity of their charters. A significant portion of the settlement amount has been paid to us in cash already, with the remaining amount to be paid in installments over the next three quarters. The Company expects to book a gain of approximately $25 million relating to the settlement.
Ole B. Hjertaker, CEO of Ship Finance Management AS, said in a comment: “Similar to the acquisition of the seven 4,100 teu container vessels last week, the acquisition of these additional 5,800 teu container vessels were also sourced from the German KG market. While the capital to be invested in the vessels is limited, the risk/reward profile of the transactions is viewed as attractive. Our business model allows us to target opportunities across our core business segments, and our main strategy remains to acquire modern vessels and rigs and combine with charters to leading operators.”
Mr Hjertaker continued: “We are also happy to see the effect of our resolve and patience coming to fruition with the settlement of a two year old chartering dispute. The vessels in question have been operated in the market without any disruption, and the market has recovered from the low-point two years ago. The cash received from the settlement will be made available for new investments.”
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