(RTTNews) -  Ship Finance International Ltd. (SFL: News ), Friday reported a decline in profit for the third quarter, as revenues dropped year over year.

Net income for the quarter was $33.97 million or $0.44 per basic share, lower than $47.44 million or $0.65 per basic share in the same quarter last year.

Adjusted net income for the quarter was $36.3 million or $0.47 per share. Adjustments mainly included a negative non-cash mark-to-market of derivatives of $2.3 million.

On an average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share. Analysts' estimates typically excluded special items.

The Hamilton, Bermuda-based company's total operating revenues declined to $80.22 million from $114.30 million in the year-ago quarter. Revenues for the quarter excluded $39.61 million of repayment of investments in finance leases, and $439 thousand of investment in associate. Five analysts estimated revenues of $94.51 million for the quarter.

Total operating expenses increased marginally to $34.09 million from $34.00 million a year ago. Operating income plunged to $46.14 million from $80.30 million in the prior year.

Profit share accrued was $4.8 million or $0.06 per share, compared to $8.0 million or $0.11 per share in the previous quarter.
In November, the first Suezmax tanker was delivered from the shipyard and chartered to an affiliate of North China Shipping Holdings Co. Ltd., pursuant to a 5-year bareboat charter agreement. The company said the second Suezmax tanker is estimated to be finalized from the yard in the first quarter of 2010, and will thereafter be delivered to North China Shipping based on a similar hire/purchase agreement.

According to the company, the transactions will increase its contract backlog by $61 million, excluding upfront payments and purchase obligations, accordingly strengthen its distribution capacity.

For the nine-month period, net income dropped to $130.17 million from $178.53 million last year. Year-to-date, total operating revenues were $265.11 million, lower than $357.07 million in the previous year.

The company has declared a quarterly dividend of $0.30 per share, which will be paid on or about January 27, 2010 to shareholders of record as of December 8, 2009. The ex-dividend date will be December 4, 2009.

SFL is currently trading at $12.78 per share, down 4.34%, on the New York Stock Exchange.

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by RTT Staff Writer

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