SFL .(US:SFL)2023-11-29 22:19Financial Performance - Total operating revenues for the nine months ended September 30, 2023, increased to $542.7 million, up 14.8% from $472.6 million in the same period of 2022[10] - Net income for the nine months ended September 30, 2023, decreased to $52.6 million, down 65.9% from $154.3 million in the same period of 2022[10] - Basic earnings per share for the nine months ended September 30, 2023, was $0.42, compared to $1.22 for the same period in 2022[10] - Comprehensive income for the nine months ended September 30, 2023, was $51.8 million, down from $172.0 million in the same period of 2022[12] - For the nine months ended September 30, 2023, the net income available to stockholders was $52.6 million, a decrease of 65.9% compared to $154.3 million for the same period in 2022[40] - The basic earnings per share (EPS) for the nine months ended September 30, 2023, was $0.42, down from $1.22 in the same period of 2022, reflecting a decline of 65.5%[40] - Net operating income decreased to $167.2 million for the nine months ended September 30, 2023, down from $201.1 million in the prior year, primarily due to expenses related to the Hercules drilling rig[184] - Net income for the period decreased by $101.7 million to $52.6 million, attributed to a rise in interest expenses by $44.5 million due to new loans for vessel acquisitions[185] - Tax expense of $2.3 million was reported for the nine months ended September 30, 2023, with no such expense in the same period in 2022[185] Assets and Liabilities - Total assets as of September 30, 2023, decreased to $3.67 billion from $3.86 billion as of December 31, 2022[16] - Total liabilities decreased to $2.63 billion as of September 30, 2023, from $2.77 billion as of December 31, 2022[16] - Cash and cash equivalents at the end of the period were $118.0 million, down from $188.4 million at the start of the period[18] - As of September 30, 2023, the Company had a net balance of $2,623.9 million in vessels, rigs, and equipment after accounting for depreciation and impairments[52] - As of September 30, 2023, total debt principal was $2,085.2 million, a decrease from $2,213.6 million as of December 31, 2022, reflecting a reduction of approximately 5.8%[76] - The current portion of finance lease liability increased significantly to $210.301 million from $53.655 million as of December 31, 2022[123] - As of September 30, 2023, the company had $432.96 million in total finance lease liabilities, a decrease from $472.996 million as of December 31, 2022[123] Revenue Breakdown - Time charter revenues increased by 11% to $388.5 million, driven by the acquisition of additional vessels[193] - Voyage charter revenues decreased by 34% to $31.3 million, primarily due to the sale of two Suezmax tankers and two chemical tankers[195] - Drilling contract revenues amounted to $102.0 million, significantly up from $0.2 million in the same period last year, following the commencement of operations for the Hercules rig[196] - River Box, an associated company, reported operating revenues of $13.8 million for the nine months ended September 30, 2023[72] Shareholder Actions - The company repurchased 1,095,095 shares during the nine months ended September 30, 2023[22] - The company declared dividends of $91.3 million for the nine months ended September 30, 2023, compared to $45.2 million in the same period of 2022[22] - The company declared dividends of $0.24 per share on three occasions during the nine months ended September 30, 2023[113] - A share repurchase program was authorized for up to $100 million, with 1,095,095 shares repurchased at an average price of approximately $9.27 per share, totaling $10.2 million[114] - The Company declared a dividend of $0.25 per share on November 8, 2023, payable on or around December 28, 2023[148] Financial Instruments and Debt - The weighted average interest rate for floating rate debt increased to 5.76% as of September 30, 2023, compared to 5.30% at the end of 2022[78] - The Company issued $150.0 million in senior unsecured sustainability-linked bonds in February 2023, with a fixed interest rate of 8.875% per annum[81] - A $150.0 million senior secured term loan facility was entered into in April 2023, with a net amount outstanding of $149.3 million as of September 30, 2023[82] - Lease debt financing increased to $515.0 million as of September 30, 2023, up from $394.6 million at the end of 2022[76] - The total net notional principal amount subject to interest rate swap agreements was $0.4 billion as of September 30, 2023, down from $0.6 billion at the end of 2022[91] - The Company redeemed NOK700 million senior unsecured floating rate bonds due 2023 in full at maturity in September 2023[94] - The Company has not entered into forward contracts for transaction or translation risk, exposing it to potential adverse effects from currency fluctuations[95] Asset Sales and Impairments - The Company recorded a gain of $2.2 million from the sale of the VLCC, Landbridge Wisdom, which generated net sale proceeds of $52.0 million[33] - The two Suezmax tankers sold during the nine months ended September 30, 2023, resulted in a gain of $16.4 million with net sale proceeds of $84.9 million[34] - The Company recorded an impairment loss of $7.4 million prior to the disposal of two chemical tankers during the nine months ended September 30, 2023[35] - A net gain of $18.7 million was recorded from the disposal of assets, including two Suezmax tankers and two chemical tankers[198] Investments and Capital Expenditures - Capital improvements of $120.2 million were made on the Hercules drilling rig, including $69.8 million for Special Periodic Survey costs[53] - The Company had total investments in sales-type leases and leaseback assets of $58.5 million as of September 30, 2023, down from $119.0 million at the end of 2022[64] - The Company has paid $102.0 million for two dual-fuel 7,000 CEU newbuilding car carriers, with the first delivered in September 2023 and the second in November 2023[159] - Capital commitments for shipbuilding contracts totaled $135.9 million as of September 30, 2023, down from $209.7 million for four newbuilding car carriers as of December 31, 2022[146] Other Financial Items - The Company reported a total other financial items net loss of $30,000 for the nine months ended September 30, 2023, compared to a gain of $13.4 million in the same period of 2022[43] - The Company recognized a mark to market loss of $0.5 million on equity securities during the nine months ended September 30, 2023[49] - The estimated fair value of interest rate and currency swap contracts was calculated using independent valuation techniques based on contracted cash flows and interest rates as of September 30, 2023[100] - The estimated fair value of NOK700 million senior unsecured floating rate bonds due 2024 was $65,753,000, compared to $70,734,000 as of December 31, 2022[96]