SFL .(US:SFL)2025-03-17 20:11Financial 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]