Financial Data and Key Metrics Changes - The company reported revenues of $193 million for Q1 2025, with an EBITDA equivalent cash flow of $116 million. The EBITDA equivalent over the last twelve months was $545 million [4][20] - A net loss of $32 million was recorded for the quarter, translating to $0.24 per share, compared to a net profit of approximately $20.2 million or $0.15 per share in the previous quarter [4][24] - The company has returned over $2.8 billion to shareholders through dividends over 85 consecutive quarters, with the latest dividend yielding approximately 13% based on the share price [4][27] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire, while the car carrier fleet contributed about $25 million, and the tanker fleet generated approximately $43 million [20] - The seven dry bulk vessels employed in the spot market contributed approximately $4.4 million in net charter revenue, down from $7.2 million in the previous quarter [20] - The overall utilization of the shipping fleet was 98.6%, with adjusted utilization at 99.8% when excluding unscheduled technical off-hire [12][13] Market Data and Key Metrics Changes - The charter backlog stands at $4.2 billion, with more than two-thirds of this backlog attributed to customers with investment-grade ratings, providing cash flow visibility [7][27] - The company anticipates that approximately 27 vessels in its fleet will be affected by new U.S. tariffs on Chinese-built vessels, primarily impacting car carriers and tankers [14][15][87] Company Strategy and Development Direction - The company aims to enhance its fleet through investments in new technology and vessel upgrades, focusing on organic growth and compliance with stricter regulatory demands [11] - The strategy includes maintaining long-term charters with strong industrial players, which provides resilience against market volatility [47] - The company is exploring strategic opportunities for its rigs while remaining cautious due to recent market volatility and oil price fluctuations [6][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding new employment for the Hercules rig despite current market challenges, emphasizing the rig's capabilities in harsh environments [6][36] - The management noted that recent market volatility has led to longer decision-making processes among customers, but discussions for long-term charters are picking up again [47] - The company is well-positioned with strong liquidity and a diversified fleet, allowing it to pursue new investment opportunities [27] Other Important Information - The company has been active in share repurchases, buying back $10 million worth of shares below $8 per share [5][27] - The company has approximately $174 million in cash and cash equivalents, along with undrawn credit lines of about $48 million [24] Q&A Session Summary Question: Inquiry about vessel and rig operating expenses - Management indicated that this year is a busy dry docking year, with up to 17 vessels scheduled for dry docking, which is above the average of 10 [30] Question: Update on Hercules rig - The Hercules rig remains warm stacked in Norway, with ongoing discussions for new contracts, but no specific timeline can be provided [36] Question: Long-term distribution potential and share repurchases - The dividend is set quarterly based on long-term sustainable cash flow, and the board aims to maximize long-term distribution per share through a combination of investments, debt repayments, share buybacks, and dividends [68] Question: Impact of new tariffs on vessels - Approximately 27 vessels are estimated to be affected by new U.S. tariffs, primarily impacting car carriers and tankers, but the costs will likely be passed on to charterers [15][90]

Financial Performance - Gross revenue was $193 million[4] - Adjusted EBITDA was $116 million[4] - Net loss was $32 million, or $0.24 per share[4, 17] Dividend and Share Repurchase - Quarterly dividend of $0.27 per share[4, 25] - Share buy-back of approximately $10 million at an average price of $7.98[4] Contracted Revenue and Backlog - Contracted backlog of $4.2 billion[4, 6, 25] - 68% of the contracted revenue is with investment grade counterparties[6] Portfolio Composition - Container vessels account for 68% of the contracted revenue[6] - Energy sector accounts for 12% of the contracted revenue[6] - Dry bulk accounts for 11% of the contracted revenue[6] - Tanker sector accounts for 8% of the contracted revenue[6] Operational Performance - Overall fleet utilization was 99.2%[11] - Container vessel utilization was 91%[11] - Car carrier utilization was 100%[11] - Tanker utilization was 100%[11] - Dry bulk utilization was 100%[11] - Energy sector utilization was 48.3%[11] Balance Sheet - Cash and cash equivalents totaled $174 million[23, 25] - Book equity ratio of 26%[21]

Group 1 - The company is set to present its preliminary first quarter results on May 14, 2025 [1] - An attachment containing the presentation of the first quarter 2025 results is included [2]

Core Insights - SFL Corporation Ltd. reported preliminary financial results for Q1 2025, including a net loss of $31.9 million or $0.24 per share, primarily due to impairments on older dry-bulk vessels and the idleness of the drilling rig Hercules [1][6] - The company declared a quarterly cash dividend of $0.27 per share, marking the 85th consecutive quarterly dividend [5][6] - Charter hire revenue for the quarter was $193.5 million, which included $1.5 million from profit share, while adjusted EBITDA was $108.0 million from consolidated subsidiaries and $7.7 million from associated companies [6] Financial Performance - The net loss of $31.9 million was attributed to one-off items, including impairments on older vessels [3][6] - Charter hire revenue was reported at $193.5 million, with an adjusted EBITDA of $115.7 million when including associated companies [6] - The company has been actively repurchasing shares, with a $10 million buyback at an average price of $7.98 per share [6] Fleet Management - SFL continues to renew its fleet by divesting older bulkers and containerships, focusing on assets with a charter backlog to support long-term dividend distribution [4][6] - The company upgraded several vessels during the quarter, enhancing cargo intake and fuel efficiency [3][4] Dividend Information - The declared quarterly cash dividend of $0.27 per share will be paid on or around June 27, 2025, with the record date set for June 12, 2025 [5][6] - This dividend reflects the company's commitment to maintaining a consistent distribution to shareholders [8]

Group 1 - The 2025 Annual General Meeting of SFL Corporation Ltd. was held on May 8, 2025, where the audited consolidated financial statements for the year ended December 31, 2024, were presented [1] - The Company has maintained a consistent dividend payment record every quarter since its initial listing on the New York Stock Exchange in 2004 [2] - SFL's fleet includes various types of vessels such as tankers, bulkers, container vessels, car carriers, and offshore drilling rigs, supported by long-term charters and a growing asset base [2] Group 2 - Resolutions passed at the meeting included setting the maximum number of Directors to eight and designating vacancies as casual, allowing the Board to fill them as deemed fit [4] - The re-election of several Directors was approved, including Kathrine Fredriksen, Gary Vogel, Keesjan Cordia, James O'Shaughnessy, Ole Hjertaker, and Will Homan-Russell [4] - Ernst & Young AS was re-appointed as auditors, with the Directors authorized to determine their remuneration, and the total remuneration for the Board of Directors was approved not to exceed US$800,000 for the year ended December 31, 2025 [4]

Company Overview - SFL Corporation Ltd. has a unique track record in the maritime industry, having paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004 [3] - The company's fleet includes tanker vessels, bulkers, container vessels, car carriers, and offshore drilling rigs, supported by a portfolio of long-term charters and significant growth in the asset base over time [3] Financial Results Announcement - SFL plans to release its preliminary financial results for the first quarter of 2025 on May 14, 2025 [1] - A conference call and webcast for stakeholders will be held on the same day at 10:00 AM (EST) / 4:00 PM (CET) [1] Investor Relations - Relevant materials for the financial results will be available on the Investor Relations section of the company's website on the same day as the announcement [1] - Investors can join the conference call in listen-only mode via the company's website or participate in a live Q&A through Zoom [2]

Group 1 - The main focus is on algorithmic trading and trading strategies, with a particular interest in macroeconomic topics related to China [1] - The individual has a background in Economics and Finance, nearing completion of a bachelor's degree and planning to pursue a master's in quantitative finance [1] - Experience includes participation in finance-related events and holding a CISI level 3 certificate in Wealth and Investment Management [1] Group 2 - The trading track record shows a conservative approach, with a portfolio yielding 17.5% at the end of 2020 and a near-flat performance in 2022 with a loss of only 0.16% [1] - The worst year recorded a gain of only 0.8% while the market was performing well, highlighting the need for a systematic approach to market entry and exit [1] - The portfolio yielded 12.84% last year with a beta of less than 0.6, indicating a lower risk profile while achieving positive returns [1]

Company Information - 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 [2] - The company's fleet includes tanker vessels, bulkers, container vessels, car carriers, and offshore drilling rigs, supported by long-term charters and significant asset growth over time [2] Upcoming Events - The 2025 Annual General Meeting of SFL Corporation Ltd. is scheduled for May 8, 2025, with a record date for voting set on April 4, 2025 [1]

Company Overview - 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 [3] - The company's fleet includes tanker vessels, bulkers, container vessels, car carriers, and offshore drilling rigs, supported by long-term charters and significant asset growth over time [3] Financial Reporting - The annual report on Form 20-F for the financial year ended December 31, 2024, has been filed with the U.S. Securities and Exchange Commission and is accessible on SFL's website [1] - Shareholders can request a hard copy of the Annual Report, which includes the complete audited financial statements for 2024, free of charge [2]

Financial Performance - Net profit for the year ended December 31, 2024, was $130.7 million, a 55.8% increase from $83.9 million in 2023[381] - Total operating revenues increased by 20.2% to $904.4 million in 2024, compared to $752.3 million in 2023[383] - Drilling contract revenues rose by 61% in 2024, primarily due to increased activity from the Hercules rig[390] - Time charter revenues increased by $75.0 million in 2024, attributed to the delivery of new vessels[388] - The company recorded a net gain of $5.4 million from asset disposals in 2024, down from $18.7 million in 2023[391] - Profit sharing revenues of $6.4 million were recorded in 2024, a new revenue stream compared to 2023[386] - The company recorded a loss of $1.3 million from the buyback of various senior unsecured floating rate bonds in 2024, compared to a loss of $0.5 million in 2023[405] - Tax expense increased to $10.6 million in 2024 from $3.3 million in 2023, primarily due to increased operations of the drilling rig Hercules[411] Debt and Financing - Interest expense for 2024 was $183.0 million, up from $167.0 million in 2023, driven by new loans and increased interest rates[401] - Total debt principal outstanding as of December 31, 2024, was $2.9 billion, compared to $2.2 billion in 2023[400] - Total short-term and long-term debt outstanding increased to $2.9 billion as of December 31, 2024, compared to $2.2 billion in 2023[428] - The company had $0.4 billion in borrowings subject to forward-starting or conditional minimum value covenants, secured against 17 vessels with combined charter-free market values of approximately $0.7 billion[435] - As of December 31, 2024, the company was in compliance with all financial covenants in its financing agreements[436] - Total contractual cash obligations as of December 31, 2024, amounted to $4.32 billion, including total debt repayments of $2.86 billion and total interest payments of $248.3 million[445] Cash Flow and Investments - Cash and cash equivalents as of December 31, 2024, were $134.6 million, down from $165.5 million in 2023[422] - Operating cash flows increased to $369.9 million in 2024 from $343.1 million in 2023, primarily due to changes in total operating income and timing of receivables[423] - Investing activities used $617.5 million in 2024, significantly higher than $103.9 million in 2023, mainly due to vessel acquisitions and capital improvements[424] - Financing activities provided cash of $216.7 million in 2024, a turnaround from a net cash outflow of $262.1 million in 2023, driven by increased debt proceeds[425] Operational Expenses - Administrative expenses increased by $5.0 million in 2024, mainly due to higher professional and legal fees[398] - Vessel and rig operating expenses rose by $49.5 million in 2024, primarily due to the delivery of new vessels[394] Market and Fleet Performance - The tanker market saw a crude tanker demand increase of approximately 0.9% in 2024, while the crude fleet grew by approximately 0.2%[451] - Average spot earnings for a 2010-built VLCC were $33,500 per day in 2024, down from $43,200 per day in 2023[453] - The dry bulk fleet increased by 3.0% in total deadweight tonnage (dwt) during 2024, while demand increased by 5.0% in terms of tonne miles[454] - Capesize earnings in 2024 averaged approximately $25,100 per day, up 51% from 2023[455] - Kamsarmax earnings in 2024 averaged approximately $14,800 per day, up 2% from 2023[455] - Supramax earnings in 2024 averaged approximately $14,600 per day, up 18% from 2023[455] - Global container trade (TEU-miles) is estimated to have increased by 18% in 2024, with containership fleet capacity expanding by more than 10%[458] - The car carrier fleet capacity grew by 8% in 2024, with global deep-sea car trade reaching a record 24.5 million cars, approximately 15% above pre-COVID-19 levels[459] - The utilization of offshore drilling rigs increased from 83% in 2020 to 93% in 2023[464] Asset Management - As of December 31, 2024, the aggregate carrying value of the company's 71 assets was $3.6 billion[476] - The company owned 69 vessels and two rigs, with tanker vessels valued at $893 million and liners valued at $1,805 million[477] - The orderbook as of January 2025 stood at 779 vessels representing 8.3 million TEU, which is 27% of TEU capacity compared to the existing fleet[458] - The company committed $33.4 million towards capital upgrades on vessels, expected to take place in 2025[452] - The company has commitments under shipbuilding contracts totaling $818.1 million for five new dual-fuel 16,800 TEU container vessels, expected to be delivered in 2028[452] Other Financial Metrics - The company paid dividends totaling $138.5 million in 2024, up from $123.0 million in 2023, with a dividend per share increase from $0.97 to $1.07[427] - The net income from equity in earnings of associated companies remained stable at $2.8 million for both 2024 and 2023[410] - A 10% reduction in charter-free market values in 2024 would not lead to material prepayments or reduced availability on revolving credit facilities after scheduled loan repayments[434] - No impairment was recognized in 2024, while two chemical tankers were impaired in 2023[474]