Sfl Corporation Stock Price, News & Analysis

SFL Corporation Ltd. (NYSE: SFL) is an international ship-owning and chartering company active across multiple segments of the maritime and offshore energy markets. According to its public disclosures, the company’s fleet includes tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs, and it has a long history of operating these assets under charter arrangements with industrial counterparties.

SFL states that it has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. Its long-term distribution capacity is described as being supported by a portfolio of long-term charters and growth in its asset base over time. The company reports that a substantial portion of its charter backlog is contracted with customers that have investment grade credit ratings, reflecting a focus on counterparties with strong credit profiles.

Business model and fleet composition

SFL’s business model, as outlined in its earnings releases and SEC filings, is based on owning maritime and energy assets and chartering them out under a mix of time charters, bareboat charters, voyage charters and drilling contracts. Charter hire represents amounts billable for vessels and rigs, typically based on contracted daily rates and chargeable days, and may include additional billable income such as profit-sharing and mobilization fees.

The company reports activity in several shipping segments:

• Container vessels – SFL discloses a container fleet that includes existing vessels and newbuildings under construction. Container vessels have generated significant charter hire, and some contracts include profit share from fuel savings.
• Car carriers – The company has a fleet of car carrier vessels on long-term time charters, which generate charter hire and may also benefit from fuel-efficiency related profit-sharing.
• Tankers – SFL owns crude oil, product and chemical tankers. Many of these tankers are on long-term time charters. The company has also reported transactions involving Suezmax tankers, including vessel sales and charter terminations.
• Dry bulk carriers – The fleet includes dry bulk carriers that have operated under both long-term charters and in the spot market. SFL has described the sale and redelivery of older bulk carriers as part of its fleet renewal efforts.
• Offshore drilling rigs – SFL owns two harsh environment drilling rigs, the jack-up rig Linus and the ultra-deepwater semi-submersible rig Hercules. Linus is on a long-term charter with ConocoPhillips in Norway until May 2029, while Hercules has been described as warm stacked pending new drilling contracts.

Charter backlog and contract profile

In its quarterly reports, SFL highlights an estimated fixed rate charter backlog measured in the billions of dollars, with a weighted remaining charter term measured in years. This backlog includes fully owned vessels, rigs and partially owned container vessels that SFL manages. The company notes that some charters contain purchase options and profit-sharing features. Purchase options, if exercised, may reduce the fixed rate charter backlog and average remaining charter term but increase capital available for new investments.

SFL distinguishes between long-term charter hire, for contracts longer than one year, and short-term charter hire, for contracts shorter than one year, including voyage charters. The company also reports that a portion of its fleet operates in the spot market at times, particularly older vessels that may later be sold as part of fleet renewal.

Fleet renewal, upgrades and environmental focus

Public statements from SFL describe an ongoing program of fleet renewal, involving the sale of older dry bulk vessels and containerships and the acquisition or construction of newer assets. The company reports investments in cargo-handling and fuel-efficiency upgrades across its existing fleet, including hull and propeller modifications and other efficiency projects. These upgrades are described as improving cargo intake, operational performance and fuel consumption, with associated benefits for both SFL and its customers.

SFL also reports investments in vessels with LNG dual-fuel capability, including newbuilds on order. The company has disclosed that it will have multiple LNG dual-fuel vessels in operation or under construction, and that it is committed to efficiency and sustainability through retrofit and upgrade programs undertaken in cooperation with customers.

Energy segment and drilling activities

Within the energy segment, SFL’s two harsh environment drilling rigs generate charter hire under drilling contracts. The jack-up rig Linus is on a long-term contract with ConocoPhillips in Norway, while Hercules has been warm stacked and is described as a legacy asset for which the company is seeking new employment or strategic alternatives. The energy segment contributes a portion of total charter hire alongside the shipping segments.

Financial reporting and capital structure

SFL prepares its financial statements in accordance with U.S. GAAP and files annual reports on Form 20-F and interim reports on Form 6-K with the U.S. Securities and Exchange Commission. Its unaudited condensed consolidated financial statements include statements of operations, comprehensive income, balance sheets, cash flows, and changes in stockholders’ equity, along with notes describing accounting policies and recent accounting standards.

The company reports a capital structure that includes short-term and long-term interest-bearing debt, various term loan facilities, lease debt financing arrangements, and senior unsecured sustainability-linked bonds with different maturities. It has also disclosed share repurchase authorizations, dividend reinvestment programs and at-the-market equity offering programs, which provide flexibility in managing its equity base.

Dividends and shareholder distributions

SFL emphasizes its history of quarterly cash dividends since its NYSE listing in 2004. Recent earnings releases refer to consecutive quarterly dividends and cumulative distributions to shareholders over time. The company links its dividend capacity to its fixed rate charter backlog, asset base and capital allocation decisions, including investments, vessel sales and share repurchases.

Corporate information and governance

SFL Corporation Ltd. is organized as a foreign issuer and is based in Hamilton, Bermuda, as indicated in its SEC filings. The company holds annual general meetings where shareholders vote on matters such as the number of directors, director elections, auditor appointments and board remuneration. Board changes and appointments are disclosed through company announcements and Form 6-K filings.

Position in the deep sea freight and maritime infrastructure space

Within the deep sea freight transportation industry and the broader transportation and warehousing sector, SFL presents itself as a maritime infrastructure owner with exposure to multiple shipping and offshore segments. Its disclosures highlight diversification across containers, car carriers, tankers, bulkers and energy assets, and a strategy centered on long-term charters, fleet renewal, and technical upgrades intended to enhance efficiency and support long-term distribution capacity.