SFL Corporation Ltd. reports interim results for the six months ended June 30, 2025, prepared under U.S. GAAP and consistent with its 2024 Form 20-F policies. The company recorded a $27.3 million impairment on six dry bulk carriers and recognized smaller impairments and sale losses on other vessels, partly offset by a $4.3 million gain on the sale of the 1,700 TEU vessel Asian Ace and a net $4.2 million gain on vessel disposals during the period. SFL issued $150.0 million of 7.75% sustainability-linked bonds due 2030, with $144.4 million net outstanding as of June 30, 2025. Capital expenditures and upgrades totaled $38.0 million and $150.7 million was paid on five newbuilding dual-fuel 16,800 TEU vessels due in 2028. The company repurchased 1,252,657 shares for $10.0 million and declared two $0.27 dividends in the period, with a further $0.20 dividend declared for September 2025. Segment reporting remains a single reportable segment; revenue concentrations include Maersk, ConocoPhillips and Hapag-Lloyd. Material risks include market cyclicality, trade policy impacts and ongoing litigation involving Seadrill.
SFL Corporation Ltd. describes a business built on owning and operating modern maritime assets on long-term charters to creditworthy counterparties, which the company says provides stable earnings and reduced residual value risk. The company retains flexible capital programs including a DRIP allowing issuance of up to 10 million common shares and an ATM program to sell up to $100 million of common shares; all issuances or repurchases remain at the company’s discretion.
The portfolio includes newer LNG dual-fuel vessels and container vessels that received hull and propeller modifications and cargo upgrades expected to cut fuel consumption per container by about 20%. SFL also disclosed legacy drilling rigs Hercules and Linus, with Hercules idle since late 2024, affecting near-term results while the company seeks new employment or strategic alternatives. The company and equity-accounted affiliates carried a total credit loss provision of approximately $3.3 million. The release explains use of non-U.S. GAAP Adjusted EBITDA as a cash-focused metric and lists typical industry and macro risk factors.