Ship Finance orders five containerships

Ship Finance orders five containerships Ship Finance International Ltd., a Bermuda-based shipowner, said it has ordered five containerships from two different Chinese shipyards.
   Jiangsu Yangzijiang Shipbuilding Co. Ltd. will build two 2,500-TEU containerships, while Guangzhou Wenchong Shipyard Co. Ltd. will build three 1,700-TEU ships.
   The aggregate construction cost for the vessels will be about $190 million and the ships are expected to be delivered in 2010.
   Including newbuildings, the company’s container fleet will then comprise 12 vessels, out of a total fleet of 65 vessels.
   The company said it would seek medium to long-term contracts for the ships.
   “A combination of very attractive construction cost for the vessels and a positive outlook for the container market is expected to generate premium returns for Ship Finance and a higher long-term dividend capacity when the vessels commence trading,” said Lars Solbakken, the company’s chief executive officer.
   The ships will initially be financed through existing credit lines and will thereby not restrict the dividend capacity until delivery, he said. 'These investments verify the company’s strategy to grow and diversify the asset base, and we anticipate further growth opportunities in the container segment.'
   In addition to the dozen containerships existing or on order, Ship Finance has 37 crude VLCC and Suezmax oil tankers, eight oil/bulk/ore vessels, three dry bulk carriers, two jack-up drilling rigs and three seismic vessels in its fleet or on order.