Bermuda-based shipowner Ship Finance International (SFI) ended the third quarter of this year with a net income of USD 29 million, up from a net income of USD 20 million posted a quarter earlier.
Total charter revenues remained flat during the three-month period ended September 30, 2017, and stood at USD 150 million.
Adjusted EBITDA for the quarter dropped to USD 115 million from USD 118 million seen in Q2 2017.
In August, SFI took delivery of two 114,000 dwt LR2 product tanker newbuildings. The ships commenced their seven-year time charters to Phillips 66 immediately upon delivery, with options for the charterer to extend the period up to 12 years.
During the quarter, the company strengthened balance sheet through early conversion of convertible notes. In October, USD 121 million principal amount was converted to equity and 9.4 million shares were issued. The remaining amount of USD 63 million is due in February 2018.
“The fleet renewal continues and we have strengthened our balance sheet through amendments to certain loan facilities, the issuance of new unsecured notes in the market and the early conversion of a large portion of our convertible notes,” Ole B. Hjertaker, CEO of Ship Finance Management AS, commented.
“These proactive measures significantly enhance our financial profile, allowing us to intensify our focus on growth,” Hjertaker concluded.