John Fredriksen-controlled shipowning company Ship Finance International made a Q£ net profit of US$45.7m, or $0.63 per share, which reflected US$16.4m unrealized loss relating to interest rate swaps related to its secured credit facilities. Ship Finance says in a statement: “A part of the Company's debt is on floating rate terms and lower interest rates in the future will, if sustained, improve long term earnings.”
The company has also announced that the single-hull VLCC Front Tobago has been sold for a “gross sales price” of US$45m with delivery to the new owner at the end of next year. Meanwhile single-hull Suezmax Front Sunda is to be converted to a heavy-lift vessel. The conversion should be completed at the beginning of the second quarter of next year. After delivery the ship will start a 10 year fixed-rate charter to Frontline Shipping II. Ship Finance also says that two suezmax newbuildings have been ordered in China for delivery in 2009 and will be marketed for medium to long-term charters, “consistent with the company's strategy”.