Ship Finance 3Q Profit Falls 55 Percent

Ship Finance 3rd-Qtr Profit Falls 55 Percent As Revenue Falls Faster Than Expenses
November 15 (AP)

Ship Finance International Ltd. said Thursday its net income fell more than half in the third quarter, as revenue fell at a higher rate than expenses and its spot-tanker business delivered lower profits.
Profit fell 55 percent to $20.6 million, or 28 cents per share, from $45.7 million, or 63 cents per share, a year earlier. Revenue fell 23.3 percent to $93.4 million from $121.8 million.

Analysts polled by Thomson Financial expected earnings of 43 cents per share on revenue of $97.5 million, on average.

Though operating expenses also fell, they used up about 36 percent of revenue last quarter compared with 29 percent in the year-ago period. Results also included a loss of $7.2 million or 10 cents per share, from a noncash accounting adjustment.

The company also said the spot-tanker market has been "substantially weaker" and negatively impacted earnings.

Ship Finance shares fell 55 cents, or 2.1 percent, to $25.80 in afternoon trading.