What drove SFL's consistent earnings beat in 2024?

SFL's consistent earnings beat in 2024 can be attributed to several key factors:

1. **Revenue Growth**: SFL's revenue grew significantly, driven by higher charter rates and improved market conditions. For instance, in Q3 2024, the company reported robust financial results with revenues surpassing $260 million. This growth was supported by strategic fleet expansions and long-term charters with investment-grade customers.
2. **Fleet Expansion and Utilization**: SFL's ongoing fleet expansion and high fleet utilization rate contributed to its financial performance. The company ordered new large container vessels and expanded its fleet with modern eco-designed vessels, which improved its market position and revenue potential. The fleet utilization rate stood at 98.3%, indicating efficient asset utilization.
3. **Strategic Partnerships**: SFL's strategic partnerships with major players like Maersk and Volkswagen provided stable charter revenues and helped navigate market challenges. These partnerships, coupled with a fixed-rate backlog of approximately $4.7 billion, ensured a steady revenue stream.
4. **Cost Management**: Despite operating costs increasing due to new vessel deliveries and mobilization costs, SFL effectively managed costs, which allowed it to maintain profitability. The company's focus on optimizing fleet utilization and managing operational expenses contributed to its earnings beat.

In summary, SFL's consistent earnings beat in 2024 was driven by revenue growth, fleet expansion, strategic partnerships, and effective cost management. These factors collectively contributed to the company's robust financial performance throughout the year.