Ship Finance Net Income Up in Q1
- Business & Finance
Ship Finance International wrapped up the first quarter of this year with a higher net income.
The company posted a net income of USD 25 million in Q1 2018, compared to USD 20 million seen in Q4 2017.
Total operating revenues stood at USD 92 million in the three-month period ended March 31, 2018, compared to USD 96 million recorded in the fourth quarter of 2017.
In March, Ship Finance agreed to acquire a fleet of 15 feeder size container vessels. The vessels range in size from 1,100-4,400 TEU and were delivered to the company in early April 2018, upon which they immediately commenced 7-year fixed rate bareboat charters.
What is more, the company inked a deal this week to buy four 14,000 TEU containerships in combination with long-term time-charters to an unrevealed container line.
“Ship Finance has successfully deployed over USD 500 million towards accretive investments over the last three months. In the process, we have increased the size of our fleet considerably and further diversified our exposure with high-quality counterparts,” Ole B. Hjertaker, CEO of Ship Finance Management AS, commented.
“The latest acquisition of four large eco-design container vessels alone increases the charter backlog by nearly USD 450 million, representing the company’s largest investment in five years, and we are very pleased to build a relationship with another leading container line,” Hjertaker added.
Ship Finance forecasts that the combination of a challenging banking market for many operators and low asset prices will create significant investment opportunities for the company, particularly in market sectors where downside asset risk is limited and the potential exists for asset value appreciation.
Following the recent acquisitions, Ship Finance now has a fleet of 40 container vessels, two car carriers, fourteen crude oil, product and chemical tankers, five offshore support vessels, four drilling rigs and 22 bulkers.