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Ship Finance International bullish on prospects after strong Q1

Ship Finance International bullish on prospects after strong Q1
Ship Finance International has reported a $33.1m profit for the first quarter, down on Q1 2014's $40.7m which included one-off gains of around $10m.

Total operating revenues of $90m were reported for the quarter, with operating income of $42.4m.

As the components of John Fredriksen's empire announced their first quarter results, SFL also revealed a new arrangement with Frontline which will reduce daily charter rates for its 17 SFL tankers from July, with profit shares to SFL doubling for earnings over the lower rate. SFL also receives a 27% stake in Frontline under the terms of the deal, or 55m shares.

Outside of the quarter, the company agreed to purchase eight capesize bulkers from Golden Ocean for an aggregate $272m. From their expected delivery in August 2015, the ships will be chartered to Golden Ocean at $17,600 for the first seven years with a 33% profit share on earnings over the base rate.

SFL's rig and vessel fleet totalled 72 units at the end of the quarter, with a charter backlog of $4.1bn and average remaining term of 5.7 years.

In its outlook the company was confident that its diverse assets make for a comfortable future, with opportunities visible in a number of core segments and capital on-hand to fund expansion.