Bermuda-based shipowner Ship Finance International Limited (SFL) invested USD 1.2 billion in new assets in 2018, continuing its fleet renewal efforts.
As explained, these transactions added USD 1.3 billion in future contracted charter revenue.
The company intends to seek further growth opportunities and maintains a strong liquidity position “in order to be able to act decisively.”
“We believe the combination of a challenging banking market for many players and low asset prices will create significant opportunities for Ship Finance in finding investment opportunities with limited downside on asset values,” SFL said.
SFL had a fleet of 86 vessels comprising tankers, bulkers, containerships and rigs at the end of 2018, with only one of the original tankers remaining.
“We have continuously renewed and grown our portfolio and diversified our charter revenue backlog across multiple segments and counterparties. SFL has transformed from a pure vessel leasing company, serving one related party, to a multi-faceted organization with USD 3.8 billion in contracted future revenues,” Ole B. Hjertaker, CEO of Ship Finance Management AS, commented.
SFL reported a net income of USD 3.5 million in the fourth quarter of 2018, down from the net income of USD 29.7 million seen a quarter earlier. The decrease was due to a USD 35.7 million non-cash impairment related to offshore supply vessels.
On the other hand, total operating revenues were USD 118.6 million in Q4 2018, higher when compared to revenues of USD 111 million posted in Q3 2018.
During the fourth quarter, the company delivered the third 10,600 TEU container vessel on long term charter to Maersk Line. SFL also acquired two 19,400 TEU container vessels on long term charters to MSC.
The company concluded more than USD 840 million lease financings in Asia for eight container vessels in Q4 2018.
At the end of the quarter, SFL had ten debt free vessels, with a combined charter free value of USD 200 million.