SFL .(US:SFL)2022-08-17 16:49Financial Data and Key Metrics Changes - Total charter revenues for the quarter were $165 million, with EBITDA equivalent cash flow approximately $124 million, and net income around $57 million or $0.45 per share [5][28] - The announced dividend of $0.23 per share represents a 4.5% increase over the previous quarter's dividend, yielding around 8.7% based on the closing price [6][31] - The fixed rate backlog increased to approximately $3.7 billion, up from $3.6 billion in the previous quarter [7][14] Business Line Data and Key Metrics Changes - The liner fleet generated gross charter hire of approximately $89 million, with a backlog of approximately $2.4 billion and an average remaining charter term of about 4.9 years [20] - The tanker fleet generated approximately $35 million in gross charter hire, an increase from $30 million in the previous quarter, with net charter hire from these vessels at approximately $6.6 million [21] - The dry bulk fleet generated approximately $31 million in gross charter hire, including $1.4 million of profit share [22] Market Data and Key Metrics Changes - The company has seen a strong recovery in the offshore drilling market, with two harsh environment drilling rigs well-positioned to benefit from increased activity [32] - The tanker market is viewed as attractive, with a focus on acquiring Suezmax tankers [9][38] Company Strategy and Development Direction - The company aims to maintain a diversified fleet and has shifted from a single asset class to multiple counterparties, with container vessels now representing the largest segment at 54% of the backlog [14][16] - The strategy includes reinvesting in modern, fuel-efficient assets and maintaining a strong technical and commercial operating platform [17][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong liquidity position and ability to grow through acquisitions, particularly in the tanker market [37][38] - The company is focused on risk mitigation and evaluating deal opportunities across segments to ensure balanced investments [15][38] Other Important Information - The company recorded a gain of approximately $13 million from the sale of vessels during the quarter, contributing to the overall net income [5][28] - The company had a strong cash position of $224 million at the end of the quarter, with expectations to free up an additional $50 million from refinancing [11][29] Q&A Session Summary Question: Are there any particular assets that you see would be attractive sales to raise additional cash? - Management indicated that while everything is for sale at the right price, the main focus remains on long-term charters and servicing those assets [35] Question: Would the company prefer to invest in larger VLCCs or Suezmaxes given the attractive tanker cycle? - Management stated that they would consider any sector based on transaction structure and risk management, emphasizing the importance of strong counterparties [38]