SFL reports first quarter net profit of $45.3 million

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SFL Corporation announced its preliminary financial results for the quarter ended March 31, 2024.

Highlights

81st consecutive quarterly dividend, increased to $0.27 per share

Net profit of $45.3 million, or $0.36 per share in the first quarter

Received charter hire1 of $235.8 million in the quarter, including $5.5 million of profit share

Adjusted EBITDA2 of $143.8 million from consolidated subsidiaries, plus $7.8 million adjusted EBITDA2 from 49.9% owned associated companies

Delivery of two LNG dual-fuel car carriers with ten year time charters to K-Line

Acquisition of three newbuild LR2 product tankers and two LNG dual-fuel stainless steel chemical carriers in combination with long term employment

New five year charters for three 10,600 teu vessels to Maersk

Charter extensions with Maersk for three 8,700-9,500 teu container vessels

Issuance of new $150 million sustainability-linked bond due 2028

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

“We are pleased to execute on our growth strategy, with several new vessels to be added over the next few months. Over the last decade SFL has transformed from a vessel financing provider to a maritime infrastructure company, with the majority of assets on long term time charters to end users.

A key part of our value proposition is to own, operate and continuously upgrade the fleet to the highest standards, including fuel efficiency measures to reduce the carbon footprint for us and our customers. And the strength of our operating platform is illustrated by our ability to execute multiple repeat transactions with industry-leading counterparties.

Our fixed rate charter backlog continues to grow and stands at approximately $3.6 billion after recent acquisitions and charters. This provides increased cash flow visibility going forward, with additional contribution from the newly acquired vessels from the third quarter onwards”.

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.27 per share. The dividend will be paid on or around June 26, to shareholders of record as of May 28, and the ex-dividend date on the New York Stock Exchange will be May 27, 2024.