In This Article:
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Revenue: Nearly $200 million for the second quarter.
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EBITDA Equivalent Cash Flow: Approximately $131 million for the quarter.
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Net Income: Around $21 million or $0.16 per share for the quarter.
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Dividend: $0.27 per share, approximately 9% dividend yield.
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Fixed Rate Backlog: Approximately $4.9 billion.
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Operating Days: 6,400 operating days in Q2.
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Fleet Utilization: 97.6% overall utilization in Q2.
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Charter Revenue: $199 million in Q2, with $90 million from container fleet.
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Profit Share Contribution: $4.3 million in Q2.
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Cash and Cash Equivalents: Approximately $186 million at quarter end.
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Adjusted EBITDA: Approximately $131 million compared to $152 million in the previous quarter.
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Book Equity Ratio: Approximately 27% based on Q2 numbers.
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Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SFL Corp Ltd (NYSE:SFL) announced its 82nd consecutive dividend, highlighting its commitment to returning value to shareholders.
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The company reported nearly $200 million in revenues for the second quarter, with an EBITDA equivalent cash flow of approximately $131 million.
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SFL Corp Ltd (NYSE:SFL) has a fixed rate backlog of approximately $4.9 billion, concentrated around long-term charters with strong end users.
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The company has transformed its operating model over the last 10 years, making it relevant for large end users like Maersk and Volkswagen Group.
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SFL Corp Ltd (NYSE:SFL) raised $100 million in a public offering to fuel further growth and build long-term distributable cash flow per share.
Negative Points
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Charter revenues from drilling rigs were lower due to US GAAP accounting rules and the mobilization of the Hercules rig.
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The Linus rig was out of service for most of the quarter due to a scheduled periodic survey, impacting revenues.
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The company's net income for the quarter was $21 million, or $0.16 per share, which is lower compared to the previous quarter.
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SFL Corp Ltd (NYSE:SFL) faces challenging prospects for recovery of a $27.4 million judgment against Allseas due to the guarantor's administration status.
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Operating and G&A expenses for the quarter were approximately $70 million, reflecting deferred operating costs and impacting overall profitability.
Q & A Highlights
Q: Are operators showing more interest in the Hercules rig given recent consolidation in the offshore space, or are they still focused on their own backlogs? A: Ole Hjertaker, CEO: The Hercules rig is currently working in Canada for Equinor and has performed well, including a significant find in Namibia for Galp. While there is a decent market for rigs of this caliber, no follow-on work has been concluded yet. The rig is expected to come off charter in the fourth quarter, depending on Equinor's drilling efficiency and scope of work. We are in discussions with various oil companies but cannot provide specific details until a new charter is in place. Recent M&A activity has focused more on drill ships rather than semi-submersibles like the Hercules. Charter rates are increasing, particularly for ultra-deepwater units, and we remain optimistic about the long-term prospects in this segment.