SFL Ship Finance International Stock Profile
Simply put it means that a project generates nearly no value for Ship Finance (NPV standing at $613 million is only a little bit higher than the acquisition cost, which is $600 million). IRR standing at 6.83% means that the project generates the rate, which is very close to the cost of capital for Ship Finance (in my calculations, due to the variable structure of financing, the company’s cost of capital is between 5.03% – 8.21%). Discover dividend stocks matching your investment objectives with our advanced screening tools.
Ship Finance International Limited reports have an aggregate usefulness score of 4.8 based on 89 reviews. SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Wednesday’s session are Avid Technology, Callaway Golf, Legg Mason and M.D.C. Holdings. CHICAGO (MarketWatch) — Ship Finance International Ltd. shares were down 11% Tuesday after Moody’s Investors Service cut the company’s rating to B1 from Ba3, sending it further into junk bond-grade. SFL Corporation Ltd. (“SFL”) has a unique track record in the maritime industry paying dividends every quarter since 2004. Professional experience comprises about 20 years in a number of financial and industrial companies. Certain financial information included in Dividend.com is proprietary to Mergent, Inc. (“Mergent”) Copyright © 2014.
And of course, you get a higher degree of contribution and you find room to increase the dividend. Furthermore, the company’s operating expenses increased at the delivery of five vessels during the quarter. And we also had approximately $900,000 higher operating expenses relating to COVID-19 measures, among others, due to our efforts to maintain a normalized crew change cycle for our seafarers despite challenging travel logistics around the globe.
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- The offering of the Notes and the offering of the Common Shares will be made under separate prospectus supplements under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission on September 26, 2016.
- And all these vessels are on time charter terms where we are responsible for technical management and vessel operations.
- Frontline Ltd.’s FRO fourth-quarter loss narrowed as revenue improved, but the company warned that overcapacity in the tanker market could lead to significant financial problems.
- In addition, we have excluded charter hire relating to the drilling rigs to be conservative in light of the ongoing financial restructuring in Seadrill.
- The announced dividend of $0.18 per share is an increase of 20% over last quarter’s dividend and represents a dividend yield of around 9% based on closing price yesterday.
- Purchasers of the Notes may separately sell up to 7,000,000 of the Company`s common shares that they may borrow through the Share Borrowers.
Simply Wall St has no position in the stocks mentioned. And I — for us, I think we would see those financing terms coming in, I would say, close to this profit and loss in terms of margin cost and also duration of that debt. I think, that’s a reflection of our approach to structuring deals, the type of assets, counterparty quality, and of course, the duration of the charters. So for us, I think we will continue assets for the time being, but of course, always evaluating alternatives to see if we can kind of improve from what we have today. We are always looking at the older fleet as potential sales candidates, of course. But in light of the current strong market for some of these vessels, like the container ships, for instance, these are — we just fixed our 2005, 700 TEU vessels at 27,000 a day for three or three and a half years.
The Board of Ship Finance believes in the long term fundamentals of the container sector and the stability of the US flag market. The five sister vessels are being built at Hyundai Mipo in Korea and will be delivered over the course of six months commencing at the end of 2006. The vessels are 2,800 TEUS and capable of 23 knots service speed. To summarize, although the whole idea of having West Linus in the company’s portfolio looks attractive in the Ship Finance’s announcement, after looking at it very closely it seems there is not too much sense in it.
Ship Finance International Ltd. engages in the ownership and operation of vessels and offshore related assets. It also involves in the charter, purchase, and sale of assets. Its assets include oil tankers, dry bulk carriers, container vessels, car carriers, jack-up drilling rig, ultra-deepwater drilling units, offshore supply vessels, and chemical tankers. The company was founded on October 10, 2003 and is headquartered in Hamilton, Bermuda. Ship Finance International Limited (SFL) has a unique track record in the maritime industry, being consistently profitable and paying dividends every quarter since 2004.
Compared to one year ago, the value of these vessels has nearly doubled. And these vessels were debt-free at quarter end, so cash effect will be similar to net sales price. Two of the vessels have been delivered already, while the remaining five will be delivered toward the end of the quarter. In connection with the Company`s offering of the Notes, a subsidiary of the Company will enter into separate share lending agreements with each of Morgan Stanley & Co.
I think, we are quite happy with the current capital structure. I think, as you know, we are — annually, we are retiring about $200 million in senior secured debt on our assets. I think, as we look on new acquisitions going forward, I think the board will also, on a quarterly basis, we cannot take a view on the dividend to what extent they intent to increase that. But I think, that is again for the board to decide on a quarterly basis.
In addition, we also saw an increase in depreciation due to the new additions to the fleet during the quarter. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods. Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study.
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The firm operates through subsidiaries located in Bermuda, Cyprus, Malta, Liberia, Norway, the United Kingdom, and the Marshall Islands. Of this amount, about 75% was derived from our vessels on long-term charters to among others, frontline at Phillips 66. The net charter hire from the company’s Suezmax tankers employed in short-term market was approximately $1.7 million, compared to $1.8 million in the previous quarters. During the third quarter, we also acquired three Suezmax tankers with five-year charters to world-leading commodity trading and logistics company.
To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. Investors shouldn’t only follow analyst recommendations. Forecasts should be used to supplement existing strategies and plans. Trading based on a recommendation chart is is considered bad practice. Analyst reports should only be used in conjunction with your own analytics.
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Excluding the drilling rigs, the backlog from our own and managed shipping assets was $2.7 billion at the end of the third quarter. Over the years, we have changed both fleet composition and structure, and we now have around 70 vessels in our portfolio. In addition to the long-term chartered vessels, we have 15 vessels trading in the short-term market. And we also had a significant contribution for profit share over time, both relating to charter rates and fuel savings.
Shipping & Finance LTD, combines the experience and expertise of its founding partners in investment banking and ship brokerage. SFL provides investment banking advisory services for cargo and passenger vessels and also for offshore energy vessels and rigs, closing over $2.5 billion in financing or joint venture transactions for clients. Learn more about dividend stocks, 5 types of elasticity of demand including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center. The longer term view from the 6 analysts covering SFL is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point.
Schedule monthly income from dividend stocks with a monthly payment frequency. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. I think, I mean, despite, as I said, the banks kind of retracting https://1investing.in/ from the market for some time now, we’ve been fortunate to have a very good access with more than 25 international banks in our portfolio. We see many banks that, for a long time, have basically reduced the portfolios coming back with strength in the market.
We’ve seen a quite interesting demand for shipbuilding capacity, driven, I would say, particularly over the last 12 months by the containership market. At the same time, we’ve seen over the years, over the last few years, that there has been — the capacity — the building capacity at shipyards has shrunk quite significantly. Some estimate up to maybe a third of the market has been removed compared to the boom around 2008. Thank you, and welcome, everyone, to SFL’s third quarter conference call. I will start the call by briefly going through the highlights of the quarter. And following that, our CFO, Aksel Olesen, will take us through the financials, and the call will be concluded by opening up for questions.
Instead, the shares are provided by way of a loan from one of Ship Finance’s largest shareholders, which is an affiliate of the Company. A roundup of the latest corporate earnings reports and what companies are saying about future quarters. In this article I am analyzing the economics of one of such charters, namely a charter of West Linus jack-up rig (the newest company’s acquisition). Quickest stock price recoveries post dividend payment.
Customized to investor preferences for risk tolerance and income vs returns mix. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company’s SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Based on the Q3 numbers, the company had a book equity ratio of approximately 26%. The board has declared a cash dividend of $0.18 per share for the quarter. This represents a dividend yield of approximately 9% based on the closing share price yesterday. GAAP, the company reported a net profit of $33.2 million or $0.26 per share. At quarter end, SFL had approximately $251 million in cash and cash equivalents. Additionally, the company had marketable securities of approximately $25 million based on market prices at the end of the quarter.
I mean, I mentioned the four vessels we have financed already, two in the senior bank market and two with Japanese operating leases. And as I stated, I mean, the remaining capex is expected to be financed in a similar manner. But I think, it’s worth just adding to that that for the vessels that we chartered out now for three to three and a half years, EBITDA contribution from that vessel is, you can say, probably essentially similar to the sales value. So in a way, you get the value through cash flow and you keep the vessel.
All these vessels will approve higher effects during the fourth quarter. Our tanker fees generated approximately $16 million in gross charter hire during the quarter. There were only minor one-offs in the quarter, including a smaller mark-to-market gain on interest hedging instruments.
That’s right — they think these 10 stocks are even better buys. The Barchart Technical Opinion rating is a 72% Buy with a Weakening short term outlook on maintaining the current direction. The Zacks Industry Rank for the Transportation-Shipping industry paints a dull picture. Braving the industry headwinds are three stocks, INSW, SFL and ASC, which you might consider adding to your portfolio…. A company with a hold recommendation is expected to perform on par with comparable companies or in line with the market.