Business Context and Reporting Period
This Form 6-K filing by Ship Finance International Limited (SFL) covers the month of December 2007. SFL is a major ship owning company listed on the NYSE with a fleet of 69 vessels, including crude oil tankers, container vessels, and offshore supply vessels. The filing primarily announces a specific asset disposal transaction.
Key Financial Metrics
The filing details a specific transaction rather than full-period financial statements. Key figures related to the sale of the offshore supply vessel Sea Trout include:
- Sales Price: Approximately $29.0 million.
- Outstanding Seller Credit: Approximately $2.4 million included in the sales price.
- Outstanding Loans: Approximately $21.8 million secured against the vessel.
- Net Cash Effect: Estimated at approximately $4.8 million to SFL.
- Profit Impact: A small book profit is expected, to be recognized in the first quarter of 2008.
The filing text does not provide clear values for total revenue, operating profit, cash flow, margins, total debt, or liquidity for the reporting period.
Material Changes
The primary material change is the agreement to sell the vessel Sea Trout to Deep Sea Supply Plc. This transaction involves the exercise of a repurchase option by Deep Sea, originally granted during the acquisition of five plus two offshore supply vessels in August and November 2007. Additionally, the delivery schedule for two other offshore supply vessels previously expected in December 2007 has been delayed to January 2008.
Outlook, Risks, and Management Commentary
Management expects the vessel to be delivered to the new owner in January 2008, with the remaining offshore supply vessels continuing their long-term charters to Deep Sea. The filing includes a cautionary statement regarding forward-looking statements, noting that actual results may differ due to uncertainties including:
- Strength of world economies and currencies.
- Fluctuations in charter hire rates and vessel values.
- Changes in OPEC production levels and global oil consumption.
- Operating expense changes, including bunker prices, dry-docking, and insurance.
- Regulatory changes and potential litigation liabilities.
- Political conditions and disruptions to shipping routes.
Investor Verification Checklist
- Verify the final closing date and actual net cash proceeds from the Sea Trout sale in Q1 2008 reports.
- Confirm the recognition of the "small book profit" in the Q1 2008 financial statements.
- Monitor the delivery status of the two offshore supply vessels rescheduled for January 2008.
- Review subsequent filings for updates on the remaining long-term charters with Deep Sea Supply Plc.