Sfl Corporation Ltd · NYSE:SFL
Sfl — Ship Finance International — Q1 2013 Earnings Presentation
16 slides from Sfl's earnings presentation, Jun 4, 2013
Slide 1: Ship Finance International Limited 1Q 2013 Results
* Ship Finance International Limited 1Q 2013 Results May 30, 2013
Slide 2: Forward Looking Statements
* FORWARD LOOKING STATEMENTS This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends, data contained in the C
Slide 3: 1Q 2013 highlights
* 1Q 2013 highlights Net income of $32.4 million ($ 0.38/share) for the quarter Aggregate charter revenue of $152.8 million ($1.79/share)(1) EBITDA(2) of $121.6 million ($1.43/share) First quarter dividend of $0.39 per share Dividend yield(3) of approx. 9% Contracted four 8,700 teu container newbuil
Slide 4: 8,700 teu newbuildings
* 8,700 teu newbuildings Four vessels with delivery in 2014 and 2015 Higher actual cargo capacity(1) than most other 9,000-10,000 teu vessels Highly versatile vessel class suitable for most trade patterns Fits the Panama Canal after the expansion is finished in mid-2015 Bosporus-max (easy access to
Slide 5: Why order containership newbuilding?
* Why order containership newbuilding? Liner companies depend on vessel efficiency and economies of scale Overall service speed has changed fundamentally since 2009 New vessel designs are optimized for lower speed and better actual cargo intake Newbuilding prices at historically low levels Fuel cons
Slide 6: $5.1 billion charter backlog
* * $5.1 billion charter backlog(1) Fixed charter backlog as of March 31, 2013, adjusted for subsequent acquisitions and sales, excluding future cash sweep/profit share, net of any seller’s credit and assuming certain call options are not exercised Charterers by Mkt. Cap Remaining Charter Term(1) 5–
Slide 7: Significant reduction in leverage last years
* * . Significant reduction in leverage last 4 years From $1,250m to ~$445m(2) = 64% reduction in loan amount Loan amortization continues (>$70m/year) Next refinancing: ~$220m in 2015 47 vessels initially in 2004 The fleet has been reduced to 22 vessels by selling the oldest tonnage Only double-hull
Slide 8: Contributions from projects last months
* * Contributions from projects last 12 months(1) Not as accounted per US GAAP – used as an internal guideline to assess the Company’s core business. Fixed charter revenues and return on financial investments Ordinary installments relating to the Company’s projects, assuming all loans fully drawn. E
Slide 9: SFL operational performance
* * SFL operational performance Pro-forma illustration of cash flow (1) Not as accounted for under US GAAP Used as an internal guideline to assess the Company's performance Excluding extraordinary and non-cash items and profit share 1Q 2013 1Q 2013 4Q 2012 4Q 2012 $ mill. $/share $ mill. $/share Fix
Slide 10: Profit & loss
* * Profit & loss Gain on sale of three older vessels No cash sweep accrual for 1Q 2013. Cash sweep for 2012 was paid to SFL in March 2013
Slide 11: Balance sheet
* * Balance sheet Excludes $235 million available under revolving credit facilities Equity ratio of 39.8%, including deferred equity of $148 million 2012 cash sweep received in March 2013
Slide 12: Liquidity and financing
* * Liquidity and financing $300 million in total available liquidity $65 million cash and cash equivalents $235 million available under revolving credit lines $56 million in available for sale securities Mainly senior secured bonds Debt overview $1.7 billion consolidated interest-bearing debt at qu
Slide 13: Staggered debt maturity
* * Staggered debt maturity(1) Amounts also including debt in unconsolidated wholly owned subsidiaries Including currently undrawn amounts available under revolving credits Several debt facilities have recently been refinanced at attractive terms 8.5% Senior notes due 2013 refinanced with $350 mill.
Slide 14: Newbuilding overview
* * 4 x 4,800 teu container vessels at quarter end Expected delivery between 3Q 2013 and 1Q 2014 7-year time charters to Hamburg Süd Entered into four newbuilding contracts subsequent to quarter end 8,700 teu container vessels with expected delivery in 2014 – 2015 Total yard cost of approximately $3
Slide 15: Covenant compliance
* * Covenant compliance Including $216 million in available undrawn credit lines with maturity in excess of .12 months Excluding short-term portion of long-term debt Including $147 million of deferred equity Ship Finance has never experienced any violations of bank covenants, despite the volatility
Slide 16: Summary
* * Summary EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 1Q-13 press release Appendix 1: Reconciliation of Net Income to EBITDA. Quarterly cash dividend, annualized / SFL share price $17.77 (May 29,
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