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]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of approximately $132 million for Q4, down from $167 million in the previous quarter, with a total EBITDA equivalent of $581 million over the last 12 months [7][33][100] - Net income for the quarter was around $20 million, or $0.15 per share, compared to approximately $44.5 million, or $0.34 per share, in the previous quarter [8][36][100] - The fixed-rate backlog stands at approximately $4.3 billion, with two-thirds of this backlog attributed to customers with investment-grade ratings, enhancing cash flow visibility [8][41][100] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire during Q4, down from the previous quarter due to scheduled dry dockings and efficiency upgrades [27][30] - The tanker fleet generated approximately $42 million in gross charter hire, an increase from approximately $37 million in the previous quarter, as all five tankers acquired in 2024 were delivered [29][30] - The energy assets generated approximately $55 million in contract revenues, down from approximately $86 million in the previous quarter, primarily due to the Hercules rig finishing its contract with Equinor [32][34] Market Data and Key Metrics Changes - The overall utilization across the shipping fleet in Q4 was 98.3%, primarily affected by 108 days spent in dry dock [21][115] - The rig market index rate increased by 2.3% in Q4, with the Hercules rig recording revenue of $34 million and costs of approximately $26 million [24][116] - The company has a diversified fleet consisting of 15 dry bulk vessels, 38 containerships, 18 tankers, 2 drilling rigs, and 7 car carriers, with container vessels making up almost 68% of the backlog [17][111] Company Strategy and Development Direction - The company has transformed its operating model over the last 10 years to focus on long-term charters with large end users, such as Maersk and Volkswagen Group [10][100] - There is a strong emphasis on vessel maintenance and upgrades to meet tightening regulatory requirements for emissions reduction, which is critical for customer relationships and organic growth [19][112] - The company is segment agnostic and seeks to pursue the right deals with strong counterparties across various shipping segments, with a focus on dry bulk investments if the right opportunities arise [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Hercules rig's prospects in the second half of 2025, despite a slow market at the beginning of the year [45][46] - The company anticipates stable cash flow fundamentals due to two-thirds of its backlog being with investment-grade counterparties, which supports the stability of dividends [52][56] - Management noted that the shipping industry is currently experiencing a historic low order book and reduced shipbuilding capacity, which could lead to favorable market conditions in the future [86][88] Other Important Information - The company raised approximately $1.3 billion in financing, including $220 million in senior unsecured bonds in 2024, and a new $150 million senior unsecured bond loan was raised post-quarter end [11][39][40] - A ruling in favor of the company against Seadrill ordered approximately $48 million in compensation, which is subject to appeal [12][105][76] Q&A Session Summary Question: Regarding the Hercules rig's operational expenses while warm stacked - Management indicated that the Hercules rig is currently warm stacked and undergoing upgrades, with expectations for lower stacking costs in the future [44][116] Question: Stability of the dividend and payout ratio - Management confirmed that the dividend is set on a quarter-over-quarter basis, with discussions focused on long-term prospects and stable cash flow fundamentals [49][50] Question: Impact of tariffs on shipping operations - Management reassured that strong counterparties like Volkswagen Group mitigate risks associated with tariffs, and the company is not directly exposed to these issues [60][61] Question: Future investments after Golden Ocean's purchase options - Management stated that they are segment agnostic and will pursue the best deals regardless of sector, with a focus on dry bulk if suitable opportunities arise [68][70] Question: Commentary on the Seadrill ruling and potential appeals - Management noted that the ruling is public and the appeal process could take up to 12 months [76] Question: Upgrades required for the Hercules rig to operate in Norway - Management indicated that while some investments are necessary, they are manageable and typically compensated by oil companies [78][81] Question: Shipping segments with the most potential in the next 2-3 years - Management emphasized that they focus on long-term charters rather than the spot market, and they see potential in dry bulk and tanker segments due to low order books [83][86]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of approximately $132 million for Q4, down from $167 million in the previous quarter [33] - Net income for the quarter was around $20 million, or $0.15 per share, compared to approximately $44.5 million, or $0.34 per share, in the previous quarter [36] - The fixed-rate backlog stands at approximately $4.3 billion, with 2/3 of this backlog attributed to customers with investment-grade ratings [101][40] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire during Q4, down from the previous quarter due to scheduled dry dockings and efficiency upgrades [27] - The tanker fleet generated approximately $42 million in gross charter hire, an increase from approximately $37 million in the previous quarter [29] - The energy assets generated approximately $55 million in contract revenues, down from approximately $86 million in the previous quarter [32] Market Data and Key Metrics Changes - The overall utilization across the shipping fleet in Q4 was 98.3%, primarily affected by 108 days spent in dry dock [114] - The rig market index rate increased by 2.3% in Q4, with the Hercules rig recording revenue of $34 million and costs of approximately $26 million [116][24] - The company has a diversified fleet with 15 dry bulk vessels, 38 containerships, 18 tankers, 2 drilling rigs, and 7 car carriers [110] Company Strategy and Development Direction - The company has transformed its operating model over the last 10 years to focus on long-term charters with large end users [10] - There is a strong emphasis on investing in vessel maintenance and upgrades to meet tightening regulatory requirements and improve customer partnerships [112] - The company is segment agnostic and seeks to pursue the right deals with strong counterparties across various shipping segments [69] Management's Comments on Operating Environment and Future Outlook - Management expects a slow market for the Hercules rig in the first half of 2025, with more prospects anticipated in the second half [45] - The company believes that the dividend stability is tied to long-term prospects, with a focus on maintaining a strong cash flow foundation [50][52] - Management does not foresee a significant impact on profitability from the large delivery backlog of container ships due to the current long-term charters in place [92] Other Important Information - The company raised approximately $1.3 billion in financing, including $220 million in senior unsecured bonds in 2024 [104] - A recent court ruling ordered Seadrill to pay approximately $48 million in compensation, which is subject to appeal [105][76] - The company has a strong balance sheet with approximately $135 million in cash and cash equivalents at quarter-end [36] Q&A Session Summary Question: What are the operational expenses for the Hercules rig while warm stacked? - Management indicated that the Hercules rig is currently warm stacked and is being upgraded to enhance its attractiveness for future contracts [46][47] Question: How stable is the dividend payout? - The dividend is set on a quarter-over-quarter basis, with discussions focused on long-term prospects and cash flow stability [50][52] Question: What is the company's view on tariffs and their impact on shipping? - Management believes that strong counterparties like Volkswagen Group can absorb tariff impacts, and the company is not directly exposed to these risks [61][64] Question: What are the plans for redeploying proceeds from the sale of Capesize vessels? - The company is open to various segments and will focus on finding the right deals with strong structures and counterparties [68][72] Question: What is the expected timeline for the Seadrill appeal ruling? - The appeal period ends on March 5, and if appealed, it could take up to 12 months for a new ruling [76]

SFL Corporation Ltd. Q4 2024 Results Presentation 1 Forward Looking Statements This presentation contains 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 su ...

Preliminary Q4 2024 results and quarterly cash dividend of $0.27 per share Hamilton, Bermuda, February 12, 2025, SFL Corporation Ltd. (“SFL” or the “Company”) today announced its preliminary financial results for the quarter ended December 31, 2024. Highlights 84th consecutive quarterly dividend declared, $0.27 per shareNet profit of $20.2 million, or $0.15 per share in the fourth quarterReceived charter hire1 of $231.7 million in the quarter, including $2.6 million of profit shareAdjusted EBITDA2 of $124 ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SFL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

SFL Corporation Ltd. ("SFL" or the “Company”) (NYSE: SFL) today received the ruling delivered by the Oslo District Court regarding the legal case between SFL’s rig-owning subsidiary and subsidiaries of Seadrill Ltd. (“Seadrill”) following the redelivery of the drilling rig Hercules to SFL in December 2022. The court today issued a judgment in favor of SFL’s subsidiary where certain subsidiaries of Seadrill were ordered to pay SFL an amount equivalent to a total of approximately $48 million in compensation, ...

SFL Corporation Ltd. ("SFL" or the “Company”) (NYSE: SFL) plans to release its preliminary financial results for the fourth quarter of 2024 on Wednesday, February 12, 2025. SFL plans to host a conference call and webcast for all stakeholders and interested parties on Wednesday, February 12, 2025, at 10:00 AM (EST) / 4:00 PM (CET). Relevant material will on the same day be available from the Investor Relations section of the Company’s website at www.sflcorp.com. In order to listen to the conference call and ...

SFL Corporation Ltd. (NYSE: SFL) (the "Company" or "SFL") today successfully placed USD 150 million senior unsecured sustainability-linked bonds due January 29, 2030. The bonds will pay a quarterly coupon of 7.75 % per annum and be issued at a price of 99.50%. Net proceeds from the bond issuance will intendedly be used for general corporate purposes. Arctic Securities, Fearnley Securities, Pareto Securities and SEB acted as Joint Bookrunners in the placement of the bond offering. ABN Amro and SMBC acted as ...

I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for Pric ...