SFL Corporation's Impressive Q2 2025 Financial Performance
Preliminary Results for Q2 2025
SFL Corporation Ltd. (NASDAQ: SFL) recently shared its preliminary financial performance for the quarter that ended on June 30, 2025. The company reported key developments indicating sustained growth and strategic investments in its operational framework.
Highlights of the Quarter
Key highlights from the quarter include:
- The declaration of the company's 86th consecutive quarterly dividend, which stands at $0.20 per share.
- A net income of approximately $1.5 million, translating to $0.01 per share.
- Charter hire earnings reaching $194 million, with around 87% stemming from shipping operations and 13% from energy sector activities.
- An adjusted EBITDA of $104 million, with $97 million derived from shipping and $7 million from energy operations. Additionally, associated vessel-owning companies contributed another $8 million to adjusted EBITDA.
- Signing a five-year time charter extension for three 9,500 TEU container vessels with Maersk, adding about $225 million to the company's backlog from 2026 to 2031.
- Continued renewal of the fleet during the second quarter and beyond, with a focus on selling older dry bulk and container vessels, generating proceeds over $200 million.
Comments from Leadership
Ole B. Hjertaker, the CEO of SFL Management AS, stated:
"In recent quarters, we have strategically improved our charter backlog by way of agreements with reliable counterparts and deploying high-quality assets. Our investments focus on upgrading cargo-handling capabilities and enhancing fuel efficiency across our fleet while parting with older, less efficient vessels. This proactive approach has led to marked improvements in operational efficiency and fuel consumption, benefiting both SFL and our clients."
Market Performance and Future Outlook
Hjertaker further acknowledged the challenges faced by their legacy drilling rig, Hercules, stating:
"The market conditions surrounding Hercules are notably difficult due to fluctuating oil prices and uncertainties in the market, which have delayed new employment for the rig. Consequently, our current financial results are affected as we maintain the rig in a warm-stacked state. However, we are optimistic about securing new opportunities and continue to pursue strategic initiatives. The recent sale and redelivery of several vessels, as previously agreed upon, have increased available capital for future investments but have also impacted our near-term cash flow generation. Hence, the board has chosen to adjust the dividend to $0.20 per share for the second quarter."
Long-Term Dividend Commitment
Since beginning operations in 2004, SFL Corporation has returned approximately $2.9 billion to its shareholders through consistent quarterly cash dividends, highlighting their long-standing commitment to shareholder value. This track record demonstrates their capacity to diversify their asset portfolio and maintain a sustainable long-term distribution framework.
Quarterly Dividend Details
For this quarter, the board has declared a cash dividend of $0.20 per share, set to be disbursed around September 29, 2025. The record date for the dividend on the New York Stock Exchange is September 12, 2025.
Engagement Opportunities
A webcast to discuss the earnings release is scheduled to take place today at 10:00 AM (EST) / 4:00 PM (CET).
To participate in the webcast, you can access it through the Investor Relations section of the company's website or directly through the provided link for the webcast:
Contact Information
Questions may be directed to SFL Management AS:
Investor and Analyst Contacts
Espen Nilsen Gjøsund, Vice President - Investor Relations: +47 47500500
André Reppen, Chief Treasurer & Senior Vice President: +47 23114055
Aksel C. Olesen, Chief Financial Officer: +47 23114036
Media Contact
Ole B. Hjertaker, Chief Executive Officer: +47 23114011
About SFL Corporation
With a strong reputation in the maritime sector, SFL Corporation has successfully paid dividends quarterly since its listing on the New York Stock Exchange in 2004. The diverse fleet includes tankers, bulkers, container vessels, car carriers, and offshore drilling rigs, demonstrating the company’s capability to support long-term distributions backed by substantial charter agreements.
Frequently Asked Questions
What were the key results reported for Q2 2025?
SFL reported a net income of $1.5 million with a dividend of $0.20 per share.
How much charter hire did SFL earn in this quarter?
SFL earned about $194 million in charter hire during the quarter.
What future plans does SFL have for its fleet?
SFL is focusing on renewing its fleet and has plans for continued investments in its assets.
How long has SFL been paying dividends?
SFL has paid dividends every quarter since 2004, totaling around $2.9 billion returned to shareholders.
Who can investors contact for more information?
Investors can contact Espen Nilsen Gjøsund at +47 47500500 for inquiries related to investor relations.
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