SFL .(SFL) - 2025 Q4 - Annual Report

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].