SFL – Ruling from Borgarting Court of Appeal in the Seadrill Legal Case

Accrued interest increased the total amount payable compared with the district court ruling.

Rhea-AI Summary

SFL (SFL) announced that Borgarting Court of Appeal ordered Seadrill to pay its rig-owning subsidiary approximately NOK 525 million.

The award, approximately $55 million, includes compensation, late payment interest and legal costs. The unanimous judgment found a contract breach when the Hercules rig was redelivered in December 2022 and largely upheld the February 2025 district court ruling. Either party may appeal within one month of service of the judgment.

1 point · 0 major

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointApproximately NOK 525 million ($55 million) awarded to SFL’s subsidiary, including compensation, interest and full legal costs for both courts. 2.9% of market cap

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Either party may appeal within one month of service, subject to permission from Norway’s Supreme Court.

News Explained

The judgment is not automatically reviewable by the Supreme Court: an appeal can be heard only if the Supreme Court’s Appeals Selection Committee grants leave, and the release says leave is granted only in limited circumstances.

Key Figures

Judgment award: Approximately NOK 525 million (approximately $55 million) Appeal deadline: Within one month of service of the judgment

Judgment award

Approximately NOK 525 million (approximately $55 million)

Payable to SFL’s subsidiary; includes compensation, late payment interest and legal costs

Appeal deadline

Within one month of service of the judgment

Either party may appeal to the Supreme Court of Norway

Key Terms

late payment interest, leave to appeal

2 terms

late payment interest financial

"including compensation, late payment interest and legal costs."

Interest charged on amounts that were not paid by their agreed due date under a contract, invoice, or statutory rule. It accrues from the missed payment date until the debt is paid and is calculated according to the rate and method specified in the contract or by law—commonly a fixed annual percentage applied to the outstanding principal, either as simple interest or, if allowed, compounded. Legal limits, contract terms, or invoice rules may cap the rate or change how interest is calculated and whether it can be compounded or recovered as part of a debt-collection claim.

leave to appeal regulatory

"An appeal can only be heard if leave to appeal is granted"

Permission granted by a court to pursue an appeal of a judicial decision; some appeals require this formal approval before an appellate court will hear the case. A court considers whether the appeal raises an arguable point of law, a significant error, or a matter of broader importance, and if permission is refused the appellant cannot proceed except by obtaining special leave from a higher court under separate rules.

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SFL Corporation Ltd. ("SFL" or the “Company”) (NYSE: SFL) today announces that Borgarting Court of Appeal has delivered its judgment in the legal case between SFL’s rig-owning subsidiary and certain subsidiaries of Seadrill Ltd. (“Seadrill”), following the redelivery of the drilling rig Hercules to SFL in December 2022.

In a unanimous judgment, the Court of Appeal found that Seadrill breached the contract when redelivering the rig. It ordered Seadrill to pay SFL’s subsidiary a total of approximately NOK 525 million (approximately $55 million), including compensation, late payment interest and legal costs.

The judgment largely upholds the Oslo District Court’s ruling of February 2025, and the total amount payable has increased as a result of accrued interest. SFL has been awarded its full legal costs for the proceedings before both the Oslo District Court and Borgarting Court of Appeal.

The Company will review the judgment in detail and either party may appeal to the Supreme Court of Norway within one month of service of the judgment. An appeal can only be heard if leave to appeal is granted by the Supreme Court’s Appeals Selection Committee, which happens only in limited circumstances.

October 13, 2026

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

Investor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, +47 23114036

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS, +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 is comprised 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did SFL’s subsidiary win in the Seadrill appeal judgment?

Seadrill was ordered to pay SFL’s subsidiary approximately NOK 525 million (approximately $55 million). The total includes compensation, late payment interest and legal costs, with full legal costs awarded for proceedings before both the Oslo District Court and Borgarting Court of Appeal.

Can SFL or Seadrill appeal the Borgarting Court of Appeal judgment?

Either party may appeal to the Supreme Court of Norway within one month of service of the judgment. An appeal can be heard only if the Supreme Court’s Appeals Selection Committee grants leave, which happens only in limited circumstances. SFL plans to review the judgment in detail.