Preliminary Financial Results for Q1 2025
Preliminary Q1 2025 results and quarterly cash dividend of $0.27 per share
SFL Corporation Ltd. (NYSE: SFL) has recently provided an insight into its financial performance for the first quarter of 2025. The company faced some challenges, yet remains committed to its dividend policy and fleet renewal.
Quarterly Highlights
Key highlights from the quarter include:
- 85th consecutive quarterly dividend declared at $0.27 per share.
- Net loss reported at $31.9 million, or $0.24 per share, primarily due to impairments linked to older dry bulk vessels.
- Charter hire income reached $193.5 million, including a profit share amounting to $1.5 million.
- Adjusted EBITDA stood at $108.0 million, with an additional $7.7 million from associated companies.
- Implementation of a $10 million share buyback program at an average price of $7.98 per share.
- Ongoing fleet renewal efforts, highlighted by the sale of older dry bulk vessels and containerships.
CEO's Insights on Performance
Ole B. Hjertaker, CEO of SFL Management AS, commented on the results, noting that the quarter was influenced by one-off items, particularly impairments due to trading conditions for older dry bulk vessels and the drilling rig Hercules being out of operation. Despite these setbacks, Hjertaker emphasized the robust performance of the remaining portfolio, mentioning enhancements on several vessels which have improved cargo intake and fuel efficiency during charter renewals at improved rates.
He stated, "We continue to renew our fleet and have divested some older bulkers and containerships as part of our ongoing strategy. Our focus remains squarely on assets that boast a charter backlog, ensuring we can maintain our long-term dividend distribution capacity." Additionally, he highlighted the strategic share repurchases in light of the recent market dynamics, indicating an intent to maximize long-term shareholder returns.
Quarterly Dividend Announcement
The Board of Directors has declared a cash dividend of $0.27 per share. This amount reflects SFL’s commitment to returning value to its shareholders. The dividend payment is expected around the end of June 2025, with the record and ex-dividend dates set for June 12, 2025.
Webcast and Future Engagements
SFL Corporation will host a webcast to discuss these results in further detail. This engagement is scheduled for a time most convenient for investors and analysts, and marks an opportunity to explore the company's financial performance further. Participants can join the event via the Investor Relations section of the SFL website or directly through the provided link.
Investor Relations Contact
For inquiries regarding financial matters, investors can reach out to:
Espen Nilsen Gjøsund, Vice President - Investor Relations +47 47500500
Aksel C. Olesen, Chief Financial Officer: +47 23114036
Media Relations Contact
Media inquiries should be directed to:
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
About SFL Corporation
SFL Corporation has established a notable presence in the maritime sector, having consistently paid dividends every quarter since its initial public offering on the NYSE in 2004. The company boasts a diverse fleet that includes tankers, bulkers, container ships, car carriers, and offshore drilling rigs. Supported by long-term charters, SFL’s distribution capacity continues to grow alongside the expansion of its asset base.
Frequently Asked Questions
What are the key financial highlights for SFL in Q1 2025?
In Q1 2025, SFL reported a net loss of $31.9 million and declared a quarterly dividend of $0.27 per share.
How does SFL plan to address the net loss?
CEO Ole B. Hjertaker indicated a focus on fleet renewal and strategic share repurchases as part of addressing challenges.
When is the quarterly dividend expected to be paid?
The quarterly cash dividend is expected to be paid on or around June 27, 2025.
Is there an opportunity for investors to engage with SFL's financial updates?
Yes, SFL will host a webcast to discuss the financial results and engage with investors.
What is SFL's long-term strategy regarding its fleet?
SFL aims to enhance its asset portfolio by focusing on vessels with charter backlogs, supporting long-term dividend capacity.
