CEO Ole Hjertaker reveals the company, which itself was spun off fromFrontline nearly a decade ago, has laid the groundwork for the move.

Speakingafter a stronger than expected second quarter showing, Hjertaker explained: “Wementioned the container segment in the last quarterly report as we saw that aspotentially interesting segment.

“And whatwe have done after that is that we have structured it so that we have theability to spin it off if and when we believe timing is right and we believe itwill benefit our shareholders in the long term.”

Hjertakersays such a move will sow the seeds for consolidation in the boxship market.

He added:“We see several entities and structures in the container market, both thelisted companies but also on the private side and portfolios controlled by thebanks, where there could be potential for asset consolidation.

“Andhaving that ability to do that not only in, call it, Ship Finance a parentcompany but also on a segment specific set up for the containers, we believe,is a benefit.

“So it'ssomething we have. We have it you can say structurally ready. We can do it ifand when we believe timing is right.”

The ideaof the spin-off comes at a time where market rumours have suggested Fredriksenis looking into containership newbuildings orders.

SFIalready has 15 container vessels to its name, including a couple of 13,000-teuvessels on charter to CMA CGM.

Ship Finance yesterday reported a profit of $61.2min the three months to 30 June 2012, versus a gain of $39m in the comparableperiod a year ago.

The result, which included a $16.3m cash sweep fromFrontline, amounted to $0.77 in earnings per share, well above the $0.49 turnedin at this stage 12 months prior.

Analysts on Wall Street had been looking for theowner to turn in a profit of $0.37 per share.

Spin-offshave become something of a signature for Fredriksen.

Golar LNGPartners was unwound from Golar LNG, while Seadrill is presently looking atlisting an MLP in the US and a subsidiary in Brazil having already stripped outsome of its harsh environment fleet into North Atlantic Drilling.

Frontline2012, seen as his new flagship venture, was created as part of a rescue deal forthe original Frontline last year.

SFI was spun-offfrom Frontline in 2003 and was listed on the New York Stock Exchange in 2004.