SFL - Sale Of Two VLCCs

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 FrontChampion  and  Golden  Victory  to  unrelated  third  parties.  The  Company hassimultaneously  agreed  to  terminate  the  corresponding charter parties with asubsidiary of Frontline Ltd. ("Frontline").The  vessels are expected to be delivered to the new owners in November 2013 andShip  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  fromFrontline.The  amortization  profile  and  maturity  of  the  notes will match the currentcharters  for the two vessels, with reduced rates until 2015 and full rates from2016. Front  Champion and Golden Victory were  acquired in 2005 with the highestcharter  rates across  the vessels  on charter  to Frontline,  and the  level ofcompensation payments for early termination is a reflection of this.While  the spot VLCC market has currently shown some signs of recovery, there isstill  a  fundamental  oversupply  in  the  market,  and the retirement of oldervessels will contribute to a balancing of the market going forward. The decisionto  phase out Front  Champion and Golden  Victory has been  made on the basis ofindividual  assessments  of  the  vessels  and  the costs of taking them throughexpensive drydockings later this year.Divesting  of older  vessels is  a part  of the  Company's strategy to renew anddiversify  the fleet. The majority of our charter revenues are currently sourcedfrom  the  offshore  segment,  and  in  the second quarter of 2013, the adjustedEBITDA  from the vessels on charter to  Frontline was limited to only 18% of thetotal.  Following this sale, the number of  vessels on charter to Frontline willbe  reduced  to  20 vessels,  including  15 VLCCs  and  five  Suezmax  crude oilcarriers.The Board of DirectorsShip Finance International LimitedHamilton, BermudaQuestions can be directed to Ship Finance Management AS:Ole B. Hjertaker, Chief Executive Officer: +47 23114011Magnus T. Valeberg, Senior Vice President: +47 23114012About Ship FinanceShip  Finance  is  a  major  ship  owning  company  listed on the New York StockExchange  (NYSE: SFL).  Including newbuildings,  the Company  has a fleet of 68vessels,  including  22 crude  oil  tankers  (VLCC  and  Suezmax),  two chemicaltankers,    12 drybulk   carriers,   19 container   vessels   (including   eightnewbuildings),  two  car  carriers,  six  offshore  supply  vessels, two jack-updrilling  rigs (including one newbuilding), two ultra-deepwater semi-submersibledrilling rigs and one ultra-deepwater drillship. The fleet is one of the largestin 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.orgCautionary Statement Regarding Forward Looking StatementsThis  press release may contain forward looking statements. These statements arebased  upon various assumptions, many of which  are based, in turn, upon furtherassumptions,  including  Ship  Finance  management's  examination  of historicaloperating  trends. Although  Ship Finance  believes that  these assumptions werereasonable  when made, because assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossible to predict andare  beyond its control, Ship Finance cannot give assurance that it will achieveor accomplish these expectations, beliefs or intentions.Important  factors that,  in the  Company's view,  could cause actual results todiffer materially from those discussed in this presentation include the strengthof   world   economies  and  currencies,  general  market  conditions  includingfluctuations  in charter hire rates and vessel  values, changes in demand in thetanker  market as a result of changes  in OPEC's petroleum production levels andworldwide  oil  consumption  and  storage,  changes  in  the Company's operatingexpenses  including bunker prices,  dry-docking and insurance  costs, changes ingovernmental  rules and regulations or  actions taken by regulatory authorities,potential  liability  from  pending  or  future litigation, general domestic andinternational  political conditions, potential disruption of shipping routes dueto  accidents or  political events,  and other  important factors described fromtime  to  time  in  the  reports  filed  by  the  Company with the United StatesSecurities and Exchange Commission.[HUG#1741497]

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