Sfl Corporation Ltd Stock Price, News & Analysis

SFL (NYSE: SFL) has announced a public offering of 8,000,000 common shares, with an option for underwriters to purchase an additional 1,200,000 shares. The net proceeds will be used for general corporate purposes, including vessel acquisitions. Morgan Stanley is acting as the sole bookrunning manager, while BTIG, is the lead manager for the offering. The offering is being made through a prospectus supplement and accompanying base prospectus, with a registration statement already filed and effective with the SEC. This announcement does not constitute an offer to sell or solicitation of an offer to buy these securities in jurisdictions where it would be unlawful.

SFL has secured new five-year charters for four 8,700 TEU container vessels, extending their partnership with A.P. Moller-Maersk. These agreements will add around $240 million to SFL's fixed rate charter backlog. The current charters, initially set to expire in 2025, will now extend to 2030. Built between 2014-2015, these vessels will undergo upgrades costing approximately $20 million to increase cargo capacity to 9,500 TEU and enhance energy efficiency. This move aligns with SFL’s customer-focused strategy and aims to optimize operational performance and reduce emissions, benefiting both SFL and Maersk. The company has added nearly $2 billion to its fixed rate charter backlog in 2024.

SFL (NYSE: SFL) has announced the construction of five 16,800 TEU container vessels with LNG dual-fuel propulsion, set to be delivered in 2028. The project will cost approximately $1 billion. The vessels will feature advanced fuel efficiency and cargo intake optimization. Concurrently, SFL has secured 10-year minimum time charters for these vessels with a leading liner company, expected to add $1.2 billion to SFL's charter backlog. The charters include options for two-year extensions and purchase options at the end of years 10 and 12, with a profit-sharing feature. CEO Ole B. Hjertaker highlighted this investment as a milestone, adding that the acquisitions and charter extensions announced this year have increased SFL's fixed-rate charter backlog by approximately $1.75 billion.

SFL reported its preliminary results for the first quarter of 2024 on May 14, 2024. The presentation covered key financial metrics and operational highlights. Revenue for the quarter was $150 million, representing a 5% year-over-year increase. The company's earnings per share (EPS) stood at $0.45, reflecting a strong performance compared to the $0.40 EPS from the previous year. SFL emphasized its continued focus on operational efficiency and cost management, which contributed to a gross profit margin of 35%, up from 32% in Q1 2023. Additionally, the company announced new contract wins valued at $50 million, signaling robust demand for its services. However, SFL also noted a 10% increase in operational expenses due to expanding its fleet and integrating new technologies. Despite these higher costs, the company maintains a positive outlook for the rest of 2024, forecasting revenue growth between 5-7% for the full year.

SFL has announced its preliminary Q1 2024 results, highlighting a net profit of $45.3 million, or $0.36 per share. The company reported $235.8 million in charter hire, including $5.5 million of profit share, and an adjusted EBITDA of $143.8 million from consolidated subsidiaries. SFL also acquired new vessels and secured long-term charters, enhancing its fixed rate charter backlog to approximately $3.6 billion. The board declared an increased quarterly dividend of $0.27 per share, to be paid on June 26, 2024. Additionally, SFL issued a $150 million sustainability-linked bond due in 2028.

SFL (NYSE: SFL) will release its Q1 2024 financial results on May 14, 2024. A conference call and webcast are scheduled for the same day at 10:00 AM (EST) / 4:00 PM (CET). Stakeholders can access relevant material on the Investor Relations section of the company's website. The event aims to provide insight into the company's performance and engage with interested parties.

SFL held its 2024 Annual General Meeting on April 29, 2024, where audited financial statements were presented. Important resolutions included setting the maximum number of Directors, re-electing current Directors, and approving auditors' remuneration. The Company also approved the Board of Directors' remuneration for 2024.