SFL - Second Quarter 2024 Results
Preliminary Q2 2024 results and quarterly
cash dividend to $0.27 per share
Hamilton, Bermuda, August 14, 2024, SFL
Corporation Ltd. (“SFL” or the “Company”) today announced its
preliminary financial results for the quarter ended June 30,
2024.
Highlights
- 82nd
consecutive quarterly dividend declared, $0.27 per share
- Net profit of
$20.6 million, or $0.16 per share in the second quarter
- Received charter
hire1 of $198.8 million in the quarter, including $4.4
million of profit share
- Adjusted
EBITDA2 of $123.3 million from consolidated
subsidiaries, plus $7.8 million adjusted EBITDA2 from
associated companies
- New five year
time charters for three 10,600 teu and four 8,700 teu vessels to
Maersk adding approximately $485 million of backlog
- Delivery of the
newbuild LR2 product tanker SFL Tucana in June with two
additional vessels due for delivery in Q3 and Q4
- Delivery of the
LNG dual-fuel 33,000 dwt chemical tanker SFL Aruba in
August, with another vessel to be delivered later in Q3
- Newbuild order
for five LNG dual-fuel 16,800 teu container vessels with scheduled
delivery in 2028, in combination with ten year time charters to a
leading liner company
- Issuance of 8
million common shares in a U.S. public offering subsequent to
quarter end, raising $100 million gross proceeds
Ole B. Hjertaker, CEO of SFL Management AS, said
in a comment:
«We are pleased to execute on our
growth strategy, and have added more than $2 billion to our charter
backlog this year. This is a combination of vessel acquisitions and
charter extensions on existing vessels, and the charter backlog now
stands at nearly $5 billion.
Over the last decade, we have built up a
high quality operational platform, which has enabled us to secure
repeat transactions with our key customers. At the same time, we
have continued to diversify our asset mix and expanding our
customer base. This has enabled us to refine our business model
from being a financing provider to facilitate maritime
infrastructure for logistics companies.
The recently announced newbuild deal for
five large container vessels marks another milestone investment for
SFL. With these vessels delivered, we will have 11 LNG dual-fuel
vessels, which demonstrates our commitment to continue expanding
our investment focus to assets with a lower carbon footprint whilst
ensuring significant visibility through ten year firm
charters.»
Quarterly Dividend
The Board of Directors has declared a quarterly
cash dividend of $0.27 per share. The dividend will be paid on or
around September 27. The record date and ex-dividend date on the
New York Stock Exchange will be September 11, 2024.
The full report can be found in the link below
and at the Company’s website www.sflcorp.com
Webcast and Presentation
In connection with the earnings release, a
webcast will be held today at 10:00 AM (EST) / 4:00 PM (CET)
In order to listen to the webcast and see the
presentation, you may do one of the following:
A: Join Webcast in Listen Only Mode:
Visit the Investor Relations section of the Company’s website
at www.sflcorp.com and click on the link to webcasts, or
access directly via the webcast link below. The webcast with
slideshow will be played from this platform:
SFL Corporation Ltd. Q2 2024
Webcast
B: Join Conference Call to
Participate in Live Q&A through
Zoom:
Join through the Zoom link below to ask a question:
SFL Q2 2024 Q&A
Meeting ID: 932 3249 7638
Passcode: 718030
In conjunction with the quarterly results, we
have published a short video in which Ole Hjertaker, CEO of SFL,
discusses the highlights of the second quarter. The video can be
accessed through SFL Corporation Ltd.’s linkedin profile.
The presentation material used in the webcast
may be downloaded at www.sflcorp.com and replay details are also
available at this Company website.
Questions may be directed to SFL Management AS:
Investor and Analyst Contact
Aksel C. Olesen, Chief Financial Officer: +47 23114036
André Reppen, Chief Treasurer & Senior Vice President: +47
23114055
Sander Borgli, Vice President - IR: +47 23114073
Media Contact
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
About SFL
SFL has a unique track record in the maritime industry and has paid
dividends every quarter since its initial listing on the New York
Stock Exchange in 2004. The Company’s fleet of vessels is comprised
of tanker vessels, bulkers, container vessels, car carriers and
offshore drilling rigs. SFL’s long term distribution capacity is
supported by a portfolio of long term charters and significant
growth in the asset base over time. More information can be found
on the Company’s website: www.sflcorp.com
Cautionary Statement Regarding Forward Looking
Statements
This press release may contain forward looking statements. These
statements are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including SFL
management’s examination of historical operating trends, data
contained in the Company’s records and other data available from
third parties. Although SFL believes that these assumptions were
reasonable when made, because assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond its control, SFL cannot give
assurance that it will achieve or accomplish these expectations,
beliefs or intentions.
Important factors that, in the Company’s view, could cause
actual results to differ materially from those discussed in the
forward looking statements include the strength of world economies,
fluctuations in currencies and interest rates, general market
conditions in the seaborne transportation industry, which is
cyclical and volatile, including fluctuations in charter hire rates
and vessel values, changes in demand in the markets in which the
Company operates, including shifts in consumer demand from oil
towards other energy sources or changes to trade patterns for
refined oil products, changes in market demand in countries which
import commodities and finished goods and changes in the amount and
location of the production of those commodities and finished goods,
technological innovation in the sectors in which we operate and
quality and efficiency requirements from customers, increased
inspection procedures and more restrictive import and export
controls, changes in the Company’s operating expenses, including
bunker prices, dry docking and insurance costs, performance of the
Company’s charterers and other counterparties with whom the Company
deals, the impact of any restructuring of the counterparties with
whom the Company deals, and timely delivery of vessels under
construction within the contracted price, governmental laws and
regulations, including environmental regulations, that add to our
costs or the costs of our customers, potential liability from
pending or future litigation, potential disruption of shipping
routes due to accidents, political instability, terrorist attacks,
piracy or international hostilities, the length and severity of the
coronavirus outbreak and governmental responses thereto and the
impact on the demand for commercial seaborne transportation and the
condition of the financial markets, and other important factors
described from time to time in the reports filed by the Company
with the United States Securities and Exchange Commission. SFL
disclaims any intention or obligation to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
1 Charter hire represents the amounts
billable in the period by the Company and its associates for
chartering out vessels and rigs. This is mainly the contracted
daily rate multiplied by the number of chargeable days plus any
additional billable income, including profit share. Long term
charter hire relates to contracts undertaken for a period greater
than one year. Short term charter hire relates to contracts
undertaken for a period less than one year, including voyage
charters.
2 ‘Adjusted EBITDA’ is a
non-U.S. GAAP measure. It represents cash
receipts from operating activities before net interest and
capital payments.
- SFL - Second Quarter 2024 Results
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