SFL - Second Quarter 2023 Results

Preliminary Q2 2023 results and quarterly cash dividend of $0.24 per share

Hamilton, Bermuda, August 17, 2023. SFL Corporation Ltd. ("SFL” or the "Company”) today announced its preliminary financial results for the quarter ended June 30, 2023.

Highlights

• 78^th consecutive quarterly dividend declared of $0.24 per share
• Net profit of $16.9 million, or $0.13 per share in the second quarter
• Received charter hire¹ of $173.8 million in the quarter, including $2.2 million of profit share
• Adjusted EBITDA² of $100.9 million from consolidated subsidiaries, plus an additional $7.8 million adjusted EBITDA² from 49.9% owned associated companies
• Sale and delivery of the suezmax tanker Everbright
• Sale and delivery of the chemical tankers SFL Weser and SFL Elbe
• Redeployment of Hercules with ExxonMobil in Canada
• New contract signed for Hercules with Equinor in Canada securing employment until Q4 2024 and increasing backlog to approximately $200 million
• Sale and delivery of bareboat chartered VLCC Landbridge Wisdom in Q3 following exercise of purchase option
  
  

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

«Over the last decade, SFL has transformed from a financial leasing 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. This translates into multiple repeat transactions with blue chip customers. It also increases the residual value of vessels in our fleet, as illustrated by the new charters for our two car carriers, where EBITDA contribution will increase fivefold.

Our fixed-rate backlog continues to grow, and stands at approximately $3.6 billion from owned and managed vessels after recent charters. This provides continued cash flow visibility going forward, with significant additional cash flow from the drilling rig Hercules and the newbuild car carriers from the third quarter.»

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.24 per share. The dividend will be paid on or around September 29, to shareholders of record as of September 14, and the ex-dividend date on the New York Stock Exchange will be September 13, 2023.

August 17, 2023
The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

The full report can be found in the link below and at the Company’s website www.sflcorp.com.

Questions may be directed to SFL Management AS:

Investor and Analyst Contact

Aksel C. Olesen, Chief Financial Officer: +47 23114036
André Reppen, Chief Treasurer and Senior Vice President: +47 23114055
Marius Furuly, Vice President - Finance: +47 23114016

Media Contact

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About SFL
SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels comprises of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com

Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Attachment

• SFL - Second Quarter 2023 Results