Core Viewpoint - SFL Corporation Ltd. has agreed to sell two Suezmax tankers, SFL Thelon and SFL Ottawa, for approximately $57 million each, expecting net proceeds of about $26 million per vessel after debt repayment and termination fees, with an aggregate book gain of around $23 million from the transaction [1][2][4] Group 1: Transaction Details - The vessels are scheduled for delivery in the fourth and first quarters, respectively [2] - The company has also mutually agreed to terminate charters for two other Suezmax tankers, SFL Albany and SFL Fraser, with a termination fee in line with a pre-agreed profit share arrangement [3] - The retained vessels are eco-designed and equipped with scrubbers, initially to be employed in the spot market [3] Group 2: Management Commentary - The CEO of SFL Management AS highlighted the transaction as a demonstration of the embedded value in the fleet, realizing significant profit from the sale of 10-year-old vessels shortly after acquisition while benefiting from solid cash flows [4] - A portion of the proceeds from the sales will be reinvested into younger, more fuel-efficient vessels to capitalize on the current strong charter market [4] Group 3: Company Background - SFL has a strong track record in the maritime industry, having paid dividends quarterly since its NYSE listing in 2004, with a diverse fleet including tankers, bulkers, container vessels, car carriers, and offshore drilling rigs [5]

Core Insights - SFL Corporation Ltd. has agreed to sell two 2015-built Suezmax tankers to a subsidiary of Koch Industries for approximately $57 million each, with net proceeds estimated at $26 million per vessel after debt repayment and termination fees [1][2] - The transaction is expected to yield an aggregate book gain of approximately $23 million, which will be allocated between the two vessels [2] - The company will also terminate charters for two 2020-built Suezmax tankers with Koch, incurring a termination fee as per a pre-agreed profit-sharing arrangement [3] - The retained vessels are eco-designed and equipped with scrubbers, initially employed in the spot market, with potential for longer-term employment [3] - The CEO highlighted the transaction as a demonstration of the fleet's embedded value, allowing for significant profit realization from older vessels while benefiting from solid cash flows [4] - A portion of the proceeds from the sale will be reinvested in younger, more fuel-efficient vessels to capitalize on the current strong charter market [4] Company Overview - SFL Corporation has a diverse fleet including tankers, bulkers, container vessels, car carriers, and offshore drilling rigs, and has paid dividends quarterly since its NYSE listing in 2004 [5] - The company's long-term distribution capacity is supported by a portfolio of long-term charters and significant growth in its asset base over time [5]

Core Insights - SFL Corporation Ltd. (NYSE:SFL) is recognized as one of the 15 stocks with the highest dividend yields to invest in [1] - BTIG has raised its price target for SFL to $11 from $10 and reaffirmed a Buy rating, highlighting a strong Q3 performance with adjusted EBITDA of $113 million, exceeding the consensus estimate by 19% [2] - The company maintained its quarterly dividend of $0.20, representing a 41% payout of operating cash flow and an annualized yield of approximately 10% [2] Financial Performance - In Q3 2025, SFL reported revenue of $178.2 million, with 86% derived from shipping charter hire and 14% from energy, despite a more than 30% decline from the previous year, it still surpassed expectations by $4.6 million [4] - The net income for the quarter was $8.6 million, equating to $0.07 per share [4] - As of September 30, 2025, SFL had $278 million in cash and cash equivalents, along with an additional $44 million available under undrawn credit facilities [4] Dividend Reliability - SFL has consistently paid dividends for 87 consecutive quarters, currently offering a yield of 9.75% as of November 16 [5] - The company owns and charters maritime and offshore assets, operating a fleet that supports medium and long-term contracts across the shipping and energy sectors [5] Share Buyback and Investment Strategy - Although SFL did not repurchase shares in the last quarter, it has $80 million remaining under its buyback authorization, valid until Q2 2026 [3] - The company continues to invest in its fleet, although it faces pressure on near-term operating cash flow due to re-deliveries and a soft drilling market [3]

Core Insights - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Group 1 - The service offers subscribers access to exclusive investment ideas earlier than they are released to the general public, with many ideas not released at all [1] - Subscribers receive in-depth research that is not available to the general public [1] - A two-week free trial is currently being offered for the service [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][6] - The net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [16][17] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet added $23 million, and the tanker segment generated $44 million [14] - Dry bulk contributed $6 million, down from $19 million, due to the divestiture of 13 dry bulk carriers as part of the fleet renewal strategy [14][15] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [6][17] - The overall utilization across the shipping fleet in Q3 was about 98.7%, with adjusted utilization at 99.9% [9] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold older vessels and invested in cargo handling and fuel efficiency upgrades, with 11 vessels now capable of operating on LNG fuel [4][11] - The company aims to diversify its asset base and maintain a sustainable long-term capacity for shareholder returns, supported by a solid liquidity position [7][17] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules rig, despite its current idle status, and is exploring various opportunities for its utilization [5][19] - The company is cautious about the geopolitical situation affecting shipping routes, particularly in the Red Sea, and is closely monitoring developments [28] Other Important Information - The company has returned approximately $2.9 billion to shareholders over 87 consecutive quarters, with a dividend yield of over 10% based on the recent share price [6][17] - The company has about $80 million remaining on a $100 million share buyback program, having repurchased $10 million worth of shares at an average price of $7.98 per share [26] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for the Hercules rig, focusing on areas where it has unique capabilities, such as the North Sea and Canadian markets [19][20] Question: Type of work considered for Hercules - The company is open to various opportunities for the Hercules, including well intervention and exploration drilling, and has made upgrades to facilitate development drilling [21][22] Question: Securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [23] Question: Update on the $100 million buyback - Approximately $80 million remains on the buyback program, with $10 million repurchased this year [26] Question: Impact of Houthi attacks on shipping in the Red Sea - Management is cautious and monitoring the situation, noting that any return to normalcy in the region will be gradual [28] Question: Purchase obligations in charter contracts - The company has shifted from bareboat charters to time charters, reducing purchase obligations and maintaining upside in residual vessel value [30] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime segments, focusing on strong counterparties and favorable deal structures [31][32]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][6] - The net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [16][17] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet added $23 million, and the tanker segment generated $44 million [14] - Dry bulk contributed $6 million, down from $19 million, due to the divestiture of 13 dry bulk carriers as part of the fleet renewal strategy [14][15] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [6][17] - The overall utilization across the shipping fleet in Q3 was about 98.7%, with adjusted utilization at 99.9% [9] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold five older dry bulk vessels and redelivered eight Cape-sized bulkers, which has improved operational and fuel efficiency [4][8] - Investments in cleaner technology are ongoing, with 11 vessels now capable of operating on LNG fuel, including five newbuildings under construction [4][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction to attract and retain high-quality charterers, with ongoing investments in modernizing the fleet [11][12] Other Important Information - The company has returned approximately $2.9 billion to shareholders over 87 consecutive quarters, with a dividend yield of over 10% based on the recent share price [6][17] - The company has about $80 million remaining on a $100 million share buyback program, having repurchased $10 million worth of shares at an average price of $7.98 per share [26] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for the Hercules rig, focusing on areas where it has unique capabilities, such as the North Sea and Canadian markets [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the Hercules, including well intervention or exploration drilling, and has made upgrades to the rig for development drilling [22] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [23] Question: Update on the $100 million buyback - Approximately $80 million remains on the buyback program, with $10 million repurchased so far this year [26] Question: Impact of Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes a slow return to normal activity in the Red Sea is likely, with potential reductions in operating expenses if vessels return to the region [28][29] Question: Purchase obligations in charter contracts - The company has transformed its business model to focus on time charters, reducing the prevalence of purchase obligations in contracts [30] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime segments, focusing on strong counterparties and favorable deal structures [31][32]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][12] - Net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [15][16] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet generated $23 million, down from $26 million due to scheduled dry docking of SFL Composer [12][14] - The tanker segment produced $44 million, benefiting from long-term charters, while dry bulk contributed $6 million, down from $19 million due to divestitures [12][14] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [5][16] - The overall utilization of the shipping fleet in Q3 was about 98.7%, with adjusted utilization reaching 99.9% when accounting for unscheduled technical issues [8] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold older vessels and invested in cargo handling and fuel efficiency upgrades, with 11 vessels now capable of operating on LNG fuel [4][10] - The strategy includes securing long-term charters with strong counterparties, as evidenced by new five-year charters for three container vessels, adding approximately $225 million to the charter backlog from 2026 onwards [4][5] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status, and is exploring various opportunities for its deployment [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction in attracting and retaining charterers, highlighting ongoing investments in modernizing the fleet [10][11] Other Important Information - The company declared a quarterly dividend of $0.20 per share, marking the 87th consecutive dividend, with a total of approximately $2.9 billion returned to shareholders over the years [5][17] - The financial position remains strong, with approximately $278 million in cash and cash equivalents and $40 million in undrawn credit lines, totaling $320 million in liquidity [15][16] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for Hercules, focusing on markets where its unique capabilities are needed, such as the North Sea and Canada, rather than the Gulf of Mexico [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the rig, including well intervention or exploration drilling, and has made upgrades to facilitate development drilling [23] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [24] Question: Update on the $100 million buyback implementation - Approximately $80 million remains on the buyback, with $10 million of shares repurchased at an average price of $7.98 per share [27] Question: Impact of potential pause in Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes it will take time for container ship operators to return to the region, with a focus on safety and risk evaluation [30][32] Question: Purchase obligations in charter contracts - The company has shifted from bareboat charters to time charters, reducing purchase obligations and maintaining upside in residual values [34] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime sectors, focusing on strong counterparties and structuring deals with favorable return characteristics [35][36]

Financial Highlights - SFL announced a dividend of $0.20 per share for the quarter[5, 25] - The company reported a net income of $9 million, resulting in earnings per share of $0.07[5] - Gross revenue reached $178 million[5] - Adjusted EBITDA was $113 million[5] Contracted Revenue and Backlog - The company has a contracted backlog of $40 billion[5, 8, 25] - Approximately 67% of the contracted backlog is with investment-grade counterparties[8] Fleet and Operations - The company's portfolio includes 30 container vessels, 18 tankers, 7 car carriers, and 2 energy assets[8] - The average charter term for container vessels is 72 years, for tankers 67 years, for car carriers 35 years, and for energy assets 33 years[8] - Utilization rates for container vessels, car carriers, tankers, and dry bulk vessels were all at 100%[11] - The company invested approximately $100 million in vessel efficiency upgrades since 2023[5] Balance Sheet and Capital Expenditure - The company's cash and cash equivalents at the end of the quarter were $278 million[22, 25] - The company has approximately $44 million of undrawn credit lines[23] - Remaining capital expenditures of $850 million are expected on five large container newbuildings[23]

Group 1 - The company will present its preliminary third quarter results on November 11, 2025 [1] - An attachment containing the third quarter 2025 results presentation is provided [2]

Core Insights - SFL Corporation Ltd. announced preliminary financial results for Q3 2025, reporting a quarterly cash dividend of $0.20 per share, marking the 87th consecutive quarterly dividend [1][5]. Financial Performance - Total operating revenues reached $178 million, with approximately 86% derived from charter hire in shipping and 14% from energy [9]. - Adjusted EBITDA was reported at $113 million, which includes $8 million from associated companies [9]. - The net income for the quarter was $8.6 million, translating to $0.07 per share [9]. Strategic Focus - The company is committed to maintaining a modern and efficient fleet, having invested nearly $100 million in fuel efficiency and cargo optimization upgrades [4]. - These initiatives have added approximately $1.2 billion to the fixed rate charter backlog, which currently stands at around $4 billion, ensuring strong cash-flow visibility [4][5]. Operational Highlights - All assets, except for the legacy drilling rig Hercules, are employed on profitable charters with high utilization [4]. - The company is optimistic about securing new employment for Hercules in the upcoming year and is exploring strategic opportunities to unlock additional value [4]. Dividend Information - The declared quarterly cash dividend of $0.20 per share will be paid on or around December 29, 2025, with the record date set for December 12, 2025 [5].