Ship Finance International Limited announces that it has agreed to sell its three remaining single hull vessels to an unrelated third party for a total net sales price of approximately $72.7 million. Concurrently with the sale, Ship Finance has agreed to terminate the corresponding charters to Frontline Ltd.
The estimated delivery of Titan Orion, Titan Aries, and Ticen Ocean to the new owner will be in 1Q 2012, 4Q 2012 and 3Q 2013, respectively. Frontline will receive an aggregate compensation of approximately $26.2 million for the termination of the current charters, or approximately $8.7 million per vessel on average.
As a result of the sale, Ship Finance expects to record an average book gain of approximately $3.2 million per vessel at the time of delivery to the new owner.
The disposal of older vessels is in line with the Company’s strategy of maintaining a young and modern fleet and the liquidity that will be released in connection with the sale is expected to be reinvested in new projects.
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock Exchange. Including newbuildings, the Company has a fleet of 73 vessels, including 28 crude oil tankers (VLCC and Suezmax), two chemical tankers, six oil/bulk/ore vessels, 12 drybulk carriers including seven newbuildings, 15 container vessels, six offshore supply vessels, one jack-up drilling rig, one ultra-deepwater drillship and two ultra-deepwater semi-submersible drilling rigs. The fleet is one of the largest in the world and most of the vessels are employed on long-term charters.
[mappress]
Source: SFL, September 13, 2011.