SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the "Company") announces that its annual report on Form 20-F for the financial year ended December 31, 2025 (the "Annual Report") has been filed with the U.S. Securities and Exchange Commission (the "Commission"). The Annual Report may be accessed through SFL's website, www.sflcorp.com, or directly in the link below. The Annual Report is also available on the website of the Commission at www.sec.gov. Shareholders may also receive a hard copy of the Annual Report, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F [ ☐ ] REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [☒] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR [ ☐ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [ ☐ ] SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Core Viewpoint - SFL Corporation Ltd. is highlighted as a strong marine shipping stock, showcasing solid financial performance and a robust revenue backlog [1]. Financial Performance - For Q4 2025, SFL reported revenue of $175.51 million, a decrease from $178.21 million in the previous year. Adjusted EBITDA was $109 million, while the company experienced a net loss of $5 million, equating to $0.04 per share [2]. - The company generated $52 million from the sale of two 2015 Suezmax tankers and invested $23 million in two 2020-built Suezmax tankers, enhancing its position in the tanker market [2]. Dividend Information - The board declared a quarterly dividend of $0.20, which will be payable on March 20, 2026, to shareholders of record on March 12, 2026. This marks the 88th consecutive quarterly dividend [3]. Business Operations - SFL Corporation Ltd. operates a diversified fleet that includes tankers, dry bulk carriers, container vessels, and offshore drilling rigs. The company focuses on long-term contracts, prioritizing the transport of oil, dry bulk, and automobiles, which helps generate stable cash flow for shareholders [3].

Industry Overview - Marine shipping companies are experiencing a significant rally due to the escalation of the Middle East conflict, particularly the closure of the Strait of Hormuz, which has led to increased freight futures and shipping stock prices [1][2] - The forward curve in the container shipping industry has shifted into contango, indicating higher future commodity prices compared to current spot prices, which may lead to a tightening in vessel supply and increased congestion at Asian ports [2] Company Highlights - Matson Inc. (NYSE:MATX) has formed a strategic partnership to enhance cargo security and reported strong Q4 results with an EPS of $4.60 and net income of $143.1 million, although quarterly revenue decreased to $851.9 million [8][10] - Hafnia Limited (NYSE:HAFN) reported a net profit of $109.7 million for Q4 2025, up from $79.6 million in Q4 2024, and announced an 80% payout ratio for dividends, yielding about 10% [12][14] - SFL Corporation Ltd. (NYSE:SFL) reported Q4 revenue of $175.51 million, down from $178.21 million the previous year, and declared a $0.20 quarterly dividend, marking its 88th consecutive dividend [16][17] - Genco Shipping & Trading Limited (NYSE:GNK) reported a net income of $15.4 million for Q4 and declared a multi-year high dividend of $0.50 per share, reflecting strong financial performance [20][23] - Ardmore Shipping Corporation (NYSE:ASC) achieved a net income of $9.3 million for Q4, an improvement from the previous year, and ended the year with $272.2 million in liquidity [24][26] - Euroseas Ltd. (NASDAQ:ESEA) reported record Q4 earnings per share of $5.79, with a net income of $40.5 million, and reaffirmed its commitment to shareholder value through dividends and buybacks [27][29]

Core Viewpoint - SFL Corporation Ltd. has secured a drilling contract valued at approximately $170 million for the semi-submersible rig Hercules, which will operate in Canada for a minimum term of 400 days, starting in the first quarter of 2027 [1][2][3]. Contract Details - The contract is with a large, investment-grade multinational oil and gas company and is expected to commence in Q1 2027 [2]. - The Hercules rig is currently located in Norway and will be prepared for mobilization to Canada later this year [2]. Management Commentary - Ole B. Hjertaker, CEO of SFL Management AS, expressed satisfaction in securing the contract, highlighting the significant demand for harsh environment, deepwater capable semi-submersibles towards the end of the decade [3]. Company Background - SFL Corporation Ltd. has a strong track record in the maritime industry, having paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004 [4]. - The company's fleet includes various types of vessels such as tankers, container vessels, car carriers, bulkers, and offshore rigs, supported by long-term charters and growth in its asset base [4].

Group 1 - As of February 13, 2026, two stocks in the energy sector are identified as potential warnings for momentum-focused investors [1] - SFL Corporation Ltd reported better-than-expected fourth-quarter sales results on February 11, contributing to a stock price increase of approximately 22% over the past month [2] - SFL's stock reached a 52-week high of $10.29, with an RSI value of 83.1, indicating it may be overbought [2]

Core Insights - Two stocks in the energy sector are identified as potentially overbought, signaling caution for momentum-focused investors [1] Company Summaries - **Antero Midstream Corp (NYSE:AM)**: No specific details provided in the news article [2] - **SFL Corporation Ltd (NYSE:SFL)**: Reported better-than-expected fourth-quarter sales results on February 11, leading to a stock price increase of approximately 22% over the past month, with a 52-week high of $10.29. The Relative Strength Index (RSI) value is noted at 83.1, indicating overbought conditions. On the last trading day, shares rose by 2.6% to close at $10.26 [2]

Core Viewpoint - SFL Corporation Ltd. is facing financial challenges despite exceeding revenue expectations, with a focus on strategic asset management in the shipping and energy sectors [2][3][4]. Financial Performance - The company reported an earnings per share (EPS) of -$0.02, missing the estimated EPS of $0.02, while revenue reached $175.5 million, surpassing the estimated $168.1 million [2][6]. - SFL recorded a net loss of $4.7 million for the quarter, contributing to a negative price-to-earnings (P/E) ratio of -856.87 [3][6]. Strategic Moves - SFL generated $52 million from the sale of two Suezmax tankers and invested $23 million in two newer tankers, indicating a proactive approach to optimizing its asset portfolio [4][6]. Financial Ratios - The price-to-sales ratio stands at 1.75, suggesting investors are willing to pay $1.75 for every dollar of sales [5]. - The current ratio of 0.42 indicates potential liquidity challenges, while a debt-to-equity ratio of 2.78 reflects a reliance on debt financing [5].

Financial Performance - The Company reported total U.S. GAAP operating revenues of approximately $176 million for Q4 2025, with 87% from shipping and 13% from energy [17]. - Adjusted EBITDA for the quarter was $109 million, including $8 million from associated companies [20]. - The reported net loss for Q4 2025 was $4.7 million, or $0.04 per share [18]. - Total operating revenues for Q4 2025 were $175.5 million, a slight decrease from $178.2 million in Q3 2025 [39]. - Net loss for Q4 2025 was $4.7 million, compared to a net income of $8.6 million in Q3 2025 [39]. - Operating income for Q4 2025 was $31.8 million, down from $48.7 million in the previous quarter [39]. - Adjusted EBITDA for Q4 2025 was $101.2 million, reflecting cash receipts from operating activities before net interest and capital payments [52]. - The company reported a loss on the sale of vessels and settlement of charters amounting to $11.7 million in Q4 2025 [51]. - The company’s investment in associates contributed $612,000 to net income for Q4 2025 [46]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2025, amounted to $151 million, with an additional $46 million available under undrawn credit lines [26]. - Cash and cash equivalents at the end of Q4 2025 were $150.8 million, a decrease from $278.2 million at the end of Q3 2025 [45]. - Net cash provided by operating activities for Q4 2025 was $74.6 million, an increase from $66.8 million in Q3 2025 [45]. Assets and Liabilities - Total assets decreased to $3.64 billion as of December 31, 2025, from $3.85 billion at the end of Q3 2025 [42]. - Long-term interest-bearing debt was $1.96 billion, slightly up from $1.95 billion in Q3 2025 [42]. Investments and Future Commitments - The contracted fixed rate charter backlog was approximately $3.7 billion, with a weighted remaining charter term of 6.5 years [21]. - The Company has five 16,800 teu container vessels under construction, with remaining capital expenditures of approximately $850 million [31]. - Total investments in vessel retrofitting and upgrades since 2023 reached nearly $110 million, focusing on efficiency and sustainability [25]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on or around March 30, 2026 [16]. Revenue Generation - The Company generated gross charter hire of $176 million in Q4 2025, with a fleet utilization rate of 99% for container vessels [21]. - The Company realized a net gain of $11.3 million from the sale of a Suezmax tanker in Q4 2025, with total net proceeds from two tanker sales estimated at $52 million [20][22].

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported revenues of $176 million and an EBITDA-equivalent cash flow of $109 million, with a total EBITDA of $450 million over the past 12 months, indicating strong operational stability [3][14] - The net result for the quarter was a loss of approximately $4.7 million or $0.04 per share, impacted by non-recurring and non-cash items [16] Business Line Data and Key Metrics Changes - Charter revenue from the fleet was approximately $176 million, with the container fleet contributing around $81 million, the car carrier fleet generating approximately $26 million, and the tanker fleet generating about $42 million [14][15] - The overall utilization of the shipping fleet in Q4 was about 98.6%, with adjusted utilization at 99.8% [12] Market Data and Key Metrics Changes - The company noted a significant strengthening in the tanker market, with the Suezmax segment expected to benefit from high charter rates due to correlations with the VLCC market [8][25] - The market for secondhand vessels is currently strong, with broker reports indicating a modern Suezmax tanker could command rates in the high $40,000s to over $60,000 per day [36] Company Strategy and Development Direction - The company aims to build a diversified, high-quality fleet and has secured long-term agreements with strong counterparties, enhancing its charter backlog to approximately $3.7 billion [3][9] - The company is focused on investing in efficiency upgrades and exploring new long-term charter opportunities, particularly in the tanker market [4][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing new employment for the Hercules rig, citing recent industry consolidations and increasing demand for premium rigs [9][42] - The company remains disciplined in its approach to capital deployment, focusing on sustainable cash flows and long-term contracts [30][31] Other Important Information - The company declared its 88th consecutive dividend of $0.20 per share, representing a dividend yield of around 9% [9][17] - The company has a solid liquidity position with cash and cash equivalents totaling approximately $151 million and an additional $46 million available on credit facilities [16][17] Q&A Session Questions and Answers Question: How is the company thinking about the Suezmax vessels given the strong crude tanker spot market? - Management finds the Suezmax market interesting and is looking for long-term charters while also benefiting from the current spot market [20][25] Question: What is the outlook for the dividend over the next 12 months? - Management indicated that the board does not guide on dividends but emphasized the importance of sustainable cash flows and disciplined capital deployment [28][31] Question: What was the rate on the previous contract for the terminated charters? - The previous charter rates for the sold vessels were around $27,000 per day, and the company sold them for $57 million each [35][36] Question: What is the status of the Hercules rig? - The Hercules rig has been idle since November 2024, but management sees signs of improving market dynamics and potential employment opportunities [42] Question: What is the size of the new rig financing facility? - The new financing facility for the Hercules rig is expected to be in the amount of $100 million [48]