Ship Finance International Ltd.  (SFL) Trade Now »     Rate SFL  -  Discuss SFL  -  Add to Watch List        

OPEC’s call for a reduction in oil output and Russian President Dmitry Medvedev’s eager willingness to cooperate might be bullish for oil prices. Whether OPEC can successfully stave off the decline in oil prices is being debated here. The real concern is for the ultimate loser being the oil transportation tanker ships as the combination of demand destruction and reduced oil output means less oil to export.

Ship Finance International Ltd. (SFL) has declared a 60¢ dividend for shareholders of record as of December 23. This marks the 19th straight quarter that Ship Finance has maintained or increased its dividend. Based on Wednesday’s closing price the stock carries a hefty 22.6% yield. I am expecting a nice pop in the share price today.

Ship Finance International Ltd. (SFL) has entered into a purchase then lease back of two deep water drill rigs with Seadrill Ltd. (SDRLF.PK). (Press Release)

The total purchase price of the rigs is $1.7 billion with SFL contributing $300 million and obtaining financing for the $1.4 billion balance. Of the $1.4 billion note, Ship Finance will only be liable for $100 million. The leases to Seadrill will be 15 year bareboat charters.

I should not be bored owning a high yield stock that is this consistent, but the quarterly earnings reports for Ship Finance International Ltd (SFL) almost makes it difficult to write an interesting analysis. (Call Transcript)

Ship Finance International Ltd (SFL) came out with their formal 1st quarter earnings and conference call on Thursday. This follows the announcement of a new mega-lease deal and dividend increase announcement a few days earlier. As expected, Ship Finance had a fine quarter with good news for the future.<!---->