Ship Finance’s Boxships Duo to Start Work for Maersk
- Business & Finance
New York-listed Ship Finance International Limited said that it took delivery of the remaining two 9,300-9,500 TEU container vessels, adding to the vessel delivered to the company in November 2015.
The boxships, which joined their owner in February and in May, have been chartered to Maersk Line for a minimum period of five years, with options for the charterer to extend the period up to seven years.
Ship Finance estimates that the aggregate EBITDA contribution from the three vessels during the firm period of the charters would amount to more than USD 32 million per year on average.
Additionally, the company said that it continued its fleet renewal and diversification strategy with the sale of an older offshore support vessel in the first quarter and an older VLCC subsequent to quarter end. Ship Finance said that it “will receive sales proceeds of approximately USD 24 million” for the sale of the 1998-built VLCC Front Vanguard, which is scheduled to be delivered to its new owner in June.
“Our key focus remains on prudently managing our balance sheet and our existing asset portfolio whilst sourcing new accretive opportunities through our industry relationships and unique access to deal flow,” Ole B. Hjertaker, CEO of Ship Finance Management AS, said.
The company’s net income for the first quarter ended March 31, 2016 was at USD 47 million, a decrease compared to the USD 54 million reported in the previous quarter, while the operating income for the period increased to USD 57 million from USD 48.5 million seen in the previous quarter.
As of March 31, 2016, and adjusted for subsequent sales, the fixed rate charter backlog from the company’s fleet of 74 vessels and rigs was approximately USD 4.2 billion, with an average remaining charter term of 5.2 years.