In This Article:
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Revenue: Over $260 million for the third quarter.
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EBITDA Equivalent Cash Flow: Approximately $167 million for the quarter.
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Net Income: Around $45 million or $0.34 per share for the quarter.
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Fixed Rate Backlog: Approximately $4.7 billion.
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Quarterly Dividend: $0.27 per share, around 10% dividend yield.
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Gross Charter Hire: Approximately $263 million during the third quarter.
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Operating and G&A Expenses: Approximately $99 million for the quarter.
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Cash and Cash Equivalents: Approximately $164 million.
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Adjusted EBITDA: Approximately $167 million for the quarter.
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Book Equity Ratio: Approximately 28%.
Release Date: November 06, 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 83rd consecutive dividend, maintaining a strong commitment to returning value to shareholders with a 10% dividend yield.
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The company reported revenues of over $260 million for the third quarter, with an EBITDA equivalent cash flow of approximately $167 million, showing significant growth from the previous quarter.
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SFL Corp Ltd (NYSE:SFL) has a fixed rate backlog of approximately $4.7 billion, with two-thirds of this from investment-grade customers, providing strong cash flow visibility.
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The company has successfully renewed and extended multiple existing charters and ordered five large container vessels with 10-year time charters, adding $1.2 billion in backlog.
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SFL Corp Ltd (NYSE:SFL) has effectively addressed short-term debt maturities by raising a new unsecured bond loan and refinancing existing debt, demonstrating strong financial management.
Negative Points
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The company faced approximately $5.6 million in negative non-cash mark-to-market and one-off items during the quarter.
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Operating costs increased significantly due to new vessel deliveries, scheduled dry dockings, and the Hercules rig being back on contract.
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The Hercules drilling rig's revenue and costs are subject to US GAAP accounting rules, which can lead to fluctuations in reported financials.
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SFL Corp Ltd (NYSE:SFL) has some legacy assets from previous sale and leaseback transactions, which may not align with its current long-term charter strategy.
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The company has older container vessels approaching 20 years, which may need to be sold or rechartered, potentially impacting future revenue.
Q & A Highlights
Q: Historically, some container ships have done sale and leasebacks to help with fleet management. Do you expect that to happen this year? And is that something that could be an opportunity for SFL? A: Ole Hjertaker, CEO: We have a significant number of container ships in our fleet and have moved away from high-leverage sale and leasebacks. Recent investments have been long-term time charters, which have worked well. We remain open to opportunities in this segment and others we focus on.