SFL cancels pair

Ship Finance International has ripped up a contract for two more newbuildings at Shanghai Shipyard.

New York-listed SFL said the 4,800-teu ships were cancelled due to excessive delays at the shipyard. 

It marks the second quarterly report in a row in which SFL has deleted newbuildings, having culled to first two ships in the series at the time of its full year earnings release.

In March it warned the other two vessels, which had been set for a charter with Hamburg Sud, could be erased.

SFL expects to receive refunds on the most recently cancelled pair in the present quartet.

Omar Nokta of Global Hunter Securities says the owner paid $58m a piece for the vessels, or which $20m has been handed over in deposits.

“The cancellations have not had a material book effect, and the freed-up capital is expected to be reinvested in new projects,” the owner said.

The change to the orderbook was revealed as the company reported what Nokta calls a solid quarterly performance.

He says core operating profit of $129.7m was aided by $11.7m from crude tankers the company has on long term deals with Frontline.