Ship Finance Has Some Good News

New York London GMT Tokyo Singapore

Ship Finance Has Some Good News

By Tim Plaehn on May 20, 2008 | More Posts By Tim Plaehn | Author's Website

I have considered Ship Finance International (SFL) a core component of my income portfolio. The press release above announces the single most expensive sale/leaseback transaction in maritime history. The benefit to SFL after interest and principle payments is 32¢ per share. Ship finance will be borrowing $700 million and the balance will be out of company fund. The drillship will complete construction in June and be on a 15 year bare ship lease fully guaranteed by Seadrill Ltd. This is SFL’s first acquisition of a deep water drilling rig and I find the timing interesting after reading this article on Seeking Alpha recently: Petrobras is Hoarding the World’s Deep Sea Drillers

At the same time, SFL announced they will increase the quarterly dividend 2¢ to 57¢. This is good news after several quarters without an increase. Ship Finance is conservatively managed and has more than adequate coverage for the dividend. It is good to see them putting some capital to work to increase the return to shareholders. I am looking forward to the earnings release on Thursday! SFL is a component of this site’s Income Portfolio.

Note: I have a long position in SFL.

Check Out These Related Posts:

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Recent News:

Macedonia’s Jan.-Sept. Trade Deficit At US$1.61 Bln - 1 day ago
Natural Gas Prices Extend Two-Month Low - 1 day ago
Stocks Finish Modestly Higher Despite Weak Jobs Report - U.S. Commentary - 1 day ago
Treasury Economist: Unemployment Numbers Disappointing But Not Unexpected - 1 day ago
Consumer Credit Fell By $14.8 Bln In September - 1 day ago

Opinions From Our Contributors

Commodities ‘Worst Is Behind Us,’ UH Economist Says Non Farm Payrolls To Bring The Bears Out Eight Months Into The Rally, What’s Next For The US Stock Market And Gold? Update: Gold’s Expanding Arc In Daily Chart Back To Bubble Land Fuel Your Stock Portfolio With BHP Billiton: The Best-Run Commodities Company In The World Will Gold’s Historic Bull Run Spill Over Into Silver? Gold, Silver, Oil And Natural Gas Have Gone Wild! Why Now Is The Time To Buy All Things Silver! Gold Is Going To Suffer A Serious Correction In Dollar Terms Read More »	Financials Stock Picks For Monday: Citigroup, JDS Uniphase And General Electric Are Discount Broker Shares Worth Owning? Investment News Briefs: UBS Fined $13.3 Million; Exxon And Shell Sign Iraq Oil Contract; Shares Of Ancestry.com Soar On IPO Retaining Risk On Wall Street: Necessary But Painful A Still-Safe 18% Dividend In “Virtual Banks” Goldman Sachs ‘Shooting Fish In A Barrel’ Warren Buffett Goes “All In” On America… How To Play The Oracle’s Big Bet IASB At Odds With FASB On ‘Extend And Pretend’ Option Traders Suggest Further Retail Sector Weakness JPMorgan Settles SEC Charges, Agrees To Pay More Than $700 Million Read More »	Exchange Traded Funds Rydex Market Timer Funds: Extremely Mixed ETFs To Cover What Warren Buffett Is Buying 10 Reasons ETF Tracking Error Occurs Law Firm Files Class Action Lawsuit On Behalf Of Investors In ProShares Ultra Oil & Gas Fund (DIG) 6 Reasons To Watch China’s ETFs Five Tips For Trading ETFs The Carry Trade: What Is It And How To Play It? Midday Market Update: Jobs Report Cheers Wall Street Gold ETF: With Each Push Higher, Volume Has Been Declining Gold To Continue Its Record Run As Central Banks Stock Up Read More »
Stocks Month To Date Market Review S&P 500: Market Is Strong, But Correction Should Continue Doctor Up Your Portfolio With This Medical Communications Company Dendreon Corp.: Put This Promising Biotech Stock On Your Watch List Has Asia Dethroned Detroit As The Auto Sector Leader? Three Marketing Giants Adjust To The New “Post-Crash” Reality Market’s Reaction To The US Unemployment Report: Neither A Buyer Nor Seller Be Stock Market Movers: Nvidia, Blue Coat Systems, The Clorox Company Stock Picks For Friday: Motorola, Crocs And Cell Therapeutics Did Warren Buffett Get A Good Deal On Burlington Northern? Read More »	Forex Australian Dollar: The Downside Prevails Canadian Dollar: Caution USD/JPY Moves Below The 89.82 Level As Stocks Move Back And Forth Swiss Franc: The Downside Prevails Japanese Yen: Under Pressure British Pound: The Downside Prevails Euro: Under Pressure Friday’s Forex Outlook US Dollar Steadies Before Friday’s NFPs But Should We Expect Breakouts? Who Cares About The US Dollar? Read More »	Economy US Unemployment Rate Troubling, But … Cartoon: It’s Still The Economy, Stupid Extension Of US Unemployment Benefits: Will That Really Benefit The Overall Economy? The Economic Implications Of Being Out Of Work For Six Months Or More Fed Signals “All Systems Go” For More Inflation Cartoon: It’s Tough To Pay Taxes Without A Job The Good, Bad And The Ugly: The Economies Of Australia, US And UK Cartoon: Cannibal Capitalism An In-Depth Look At The Unemployment Report Mancession Update: Record Oct. Male Jobless Rate Of 11.4%, Female Rate Still 1.6% Below 1982 High Read More »