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SFL - Sale Of Two VLCCs

Stocks in this article: SFL

HAMILTON, Bermuda, Nov. 7, 2013 (GLOBE NEWSWIRE) --

Press release from Ship Finance International Limited, November 7 2013.
Ship Finance International Limited (NYSE:SFL) ("Ship Finance" or the "Company"),
today  announced that it has agreed to  sell the 1998 and 1999 built VLCCs Front
Champion  and  Golden  Victory  to  unrelated  third  parties.  The  Company has
simultaneously  agreed  to  terminate  the  corresponding charter parties with a
subsidiary of Frontline Ltd. ("Frontline").
The  vessels are expected to be delivered to the new owners in November 2013 and
Ship  Finance expects  to receive  cash proceeds  of approximately  $43 million,
including approximately $11 million upfront payment from Frontline. In addition,
we  will  receive  approximately  $79  million  in  7.5% amortizing  notes  from
Frontline.
The  amortization  profile  and  maturity  of  the  notes will match the current
charters  for the two vessels, with reduced rates until 2015 and full rates from
2016. Front  Champion and Golden Victory were  acquired in 2005 with the highest
charter  rates across  the vessels  on charter  to Frontline,  and the  level of
compensation payments for early termination is a reflection of this.
While  the spot VLCC market has currently shown some signs of recovery, there is
still  a  fundamental  oversupply  in  the  market,  and the retirement of older
vessels will contribute to a balancing of the market going forward. The decision
to  phase out Front  Champion and Golden  Victory has been  made on the basis of
individual  assessments  of  the  vessels  and  the costs of taking them through
expensive drydockings later this year.
Divesting  of older  vessels is  a part  of the  Company's strategy to renew and
diversify  the fleet. The majority of our charter revenues are currently sourced
from  the  offshore  segment,  and  in  the second quarter of 2013, the adjusted
EBITDA  from the vessels on charter to  Frontline was limited to only 18% of the
total.  Following this sale, the number of  vessels on charter to Frontline will
be  reduced  to  20 vessels,  including  15 VLCCs  and  five  Suezmax  crude oil
carriers.

The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda

Questions can be directed to Ship Finance Management AS:
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
Magnus T. Valeberg, Senior Vice President: +47 23114012

About Ship Finance
Ship  Finance  is  a  major  ship  owning  company  listed on the New York Stock
Exchange  (NYSE: SFL).  Including newbuildings,  the Company  has a fleet of 68
vessels,  including  22 crude  oil  tankers  (VLCC  and  Suezmax),  two chemical
tankers,    12 drybulk   carriers,   19 container   vessels   (including   eight
newbuildings),  two  car  carriers,  six  offshore  supply  vessels, two jack-up
drilling  rigs (including one newbuilding), two ultra-deepwater semi-submersible
drilling rigs and one ultra-deepwater drillship. The fleet is one of the largest
in the world and most of the vessels are employed on long-term charters.
More information can be found on the Company's website: www.shipfinance.org

Cautionary Statement Regarding Forward Looking Statements
This  press release may contain forward looking statements. These statements are
based  upon various assumptions, many of which  are based, in turn, upon further
assumptions,  including  Ship  Finance  management's  examination  of historical
operating  trends. Although  Ship Finance  believes that  these assumptions were
reasonable  when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are  beyond its control, Ship Finance cannot give assurance that it will achieve
or accomplish these expectations, beliefs or intentions.
Important  factors that,  in the  Company's view,  could cause actual results to
differ materially from those discussed in this presentation include the strength
of   world   economies  and  currencies,  general  market  conditions  including
fluctuations  in charter hire rates and vessel  values, changes in demand in the
tanker  market as a result of changes  in OPEC's petroleum production levels and
worldwide  oil  consumption  and  storage,  changes  in  the Company's operating
expenses  including bunker prices,  dry-docking and insurance  costs, changes in
governmental  rules and regulations or  actions taken by regulatory authorities,
potential  liability  from  pending  or  future litigation, general domestic and
international  political conditions, potential disruption of shipping routes due
to  accidents or  political events,  and other  important factors described from
time  to  time  in  the  reports  filed  by  the  Company with the United States
Securities and Exchange Commission.


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