HAMILTON, BERMUDA--(MARKET WIRE)--Aug 21, 2008 --
Ship Finance International Limited (SFL - News) - Earnings Release

Reports second quarter 2008 results and increased quarterly dividend to $0.58 per share

Ship Finance International Limited ("Ship Finance" or the "Company") announces the financial results for the quarter ended June 30, 2008.

Highlights

* Declared an increased quarterly cash dividend of $0.58 per share. This includes the previously announced $0.02 dividend increase relating to the acquisition of an ultra-deepwater drillship. The Company has now declared stable or increasing dividends for 18 consecutive quarters.

* Reported net income for the quarter of $71.3 million, or $0.98 per share, including profit share of $33.1 million, or $0.46 per share.

* The single-hull VLCC Front Sabang commenced its new hire/purchase arrangement in April and a $10.6 million gain on sales was recognized in the second quarter.

* The first of two 17,000 dwt chemical tanker newbuildings was delivered in April 2008 and commenced its 10-year bareboat charter to Bryggen Shipping & Trading AS ("Bryggen").

* The ultra-deepwater drillship West Polaris was delivered in July 2008 and commenced its 15-year bareboat charter to Seadrill Limited ("Seadrill").

* Announced the sale of two newbuilding Suezmax tankers for a record $111 million per vessel. The transaction is expected to generate a book profit of approximately $68 million, or $34 million per vessel, to be recognized at delivery of the vessels in 2009.

Dividends and Results for the Quarter ended June 30, 2008

The Board of Directors has declared an increased quarterly cash dividend of $0.58 per share. The dividend will be paid on or about September 15, 2008 to shareholders of record as of September 2, 2008. The ex-dividend date will be August 28, 2008.

The Company reported total operating revenues of $120.9 million, or $1.66 per share, in the second quarter. Net operating income for the quarter was $96.8 million, or $1.33 per share, and net income was $71.3 million, or $0.98 per share.

As the majority of the Company's assets are accounted for as finance leases, a significant portion of the charter hire is classified as 'Repayment of investment in finance leases' and is deducted from the revenues in the Company's Income Statement. For the second quarter, this amounted to $71.1 million or $0.98 per share, including an extraordinary upfront payment of $21.6 mill. related to the hire/purchase arrangement for Front Sabang.

The profit share accumulated in the second quarter was $33.1 million, or $0.46 per share, compared to $33.7 million, or $0.46 per share, in the first quarter. The substantial profit share accumulated in the quarter was due to a very strong spot charter market for crude oil tankers. The market continued to be strong into the third quarter, but has softened in August.

There was a $3.2 million, or $0.04 per share, positive adjustment in mark-to-market of swaps in the second quarter, compared to a $2.2 million, or $0.03 per share, negative adjustment in the previous quarter.

 
August 21, 2008
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda

Copyright © Hugin AS 2008. All rights reserved.

     Questions should be directed to:
      
     Lars Solbakken
     Chief Executive Officer
     Ship Finance Management AS
     +47 23114006 / +47 91198844
      
     Ole B. Hjertaker
     Chief Financial Officer
     Ship Finance Management AS
     +47 23114011 / +47 90141243