Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL) covers the month of September 2009. The report primarily documents the results of the Company's 2009 Annual General Meeting (AGM) held on September 25, 2009, in Paget, Bermuda. SFL is a major ship owning company listed on the NYSE with a fleet of 66 vessels, including crude oil tankers, container vessels, and drilling units, most of which are employed on long-term charters.
Key Financial Metrics
The filing text does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current period. The document notes that audited consolidated financial statements for the year ended December 31, 2008, were presented to the AGM, but the specific values from those statements are not included in this text.
One specific financial figure disclosed relates to corporate governance:
- Board Remuneration: Shareholders approved a total fee cap of US$750,000 for the Board of Directors for the year ended December 31, 2009.
Material Changes and Corporate Actions
The AGM passed several resolutions resulting in material corporate changes:
- Share Premium Reduction: The share premium account was reduced from US$2,194,000.00 to nil, with the amount credited to the Contributed Surplus account effective immediately.
- Director Re-elections: Paul Leand Jr., Kate Blankenship, Craig H. Stevenson, Jr., Hans Petter Aas, and Cecilie Fredriksen were re-elected as Directors.
- Auditor Appointment: Moore Stephens, P.C. was appointed as the Company's auditors.
- Board Structure: The maximum number of Directors was set at eight, and the Board was authorized to fill casual vacancies.
Guidance, Outlook, and Risks
The filing includes a cautionary statement regarding forward-looking statements, noting that actual results may differ due to significant uncertainties. Key risk factors identified include:
- Strength of world economies and currencies.
- Fluctuations in charter hire rates and vessel values.
- Changes in demand in the tanker market driven by OPEC production levels and global oil consumption.
- Operating expense volatility, specifically bunker prices, dry-docking, and insurance costs.
- Regulatory changes and potential liabilities from pending or future litigation.
Management commentary highlights that the Company has declared a cash dividend for 22 consecutive quarters.
Investor Verification Checklist
- Verify the impact of the US$2,194,000 share premium reduction on the Company's balance sheet and Contributed Surplus.
- Review the full audited consolidated financial statements for the year ended December 31, 2008, which were presented at the AGM but not detailed in this filing.
- Confirm the specific remuneration structure for the newly appointed auditors, Moore Stephens, P.C.
- Monitor the Company's ability to maintain its dividend streak given the cited risks regarding charter rates and bunker prices.