What does SFL do and what are its main business segments?

What is SFL's latest dividend and current dividend yield?

What guidance did SFL's management provide for the next earnings period?

What were the key takeaways from SFL’s earnings call?

Did SFL beat or miss consensus estimates last quarter?

What were the key takeaways from SFL's earnings call?

What is SFL's gross profit margin?

What factors drove the changes in SFL's revenue and profit?

- **Record Dividend Stability**: 87th consecutive $0.20 dividend, yielding over 10%, underscores financial resilience.
- **Fleet Modernization**: 22 older vessels divested; $100M upgrades enhance efficiency, with 11 LNG-capable vessels.
- **Strong Cash Flow**: $4B charter backlog, 98.7% fleet utilization, and $278M cash ensure liquidity.
- **Hercules Update**: Rig remains idle but operational; strategic alternatives being explored for harsh environment markets.
- **Growth Pipeline**: 5 dual-fuel container newbuildings and $850M capital expenditure for accretive growth.

**【CEO Summary Section】**
- Q3 2025 revenue of $178 million, EBITDA of $113 million, and 12-month EBITDA of $473 million highlight operational stability.
- 87th consecutive $0.20 dividend declared, yielding over 10% based on recent share price.
- Fleet renewal: 22 older vessels divested, average fleet age reduced to under 10 years; 11 LNG-capable vessels, including 5 newbuildings, enhance fuel efficiency.
- Charter backlog of $4 billion, 2/3 with investment-grade counterparties, provides cash flow visibility.
- Hercules drilling rig remains idle but warm-stacked; strategic alternatives under evaluation.

**【COO Fleet Update】**
- Fleet of 59 assets: 30 container ships, 16 tankers, 2 car carriers, 2 rigs. Q3 utilization 98.7%, with 99.9% availability excluding technical off-hire.
- $100 million invested in upgrades (cargo handling, fuel efficiency) across 13 container vessels, securing new charters.
- SFL Composer collision incident resolved with minimal financial impact; dry docking completed on schedule.
- 5 dual-fuel 16,000 TEU container vessels on order for 2026+ charters.

**【CFO Financial Commentary】**
- Q3 net income $8.6 million ($0.07 EPS), driven by stable charter hire ($178 million) and cost control ($69 million operating expenses).
- Strong liquidity: $278 million cash, $40 million undrawn credit, total $320 million.
- Capital expenditures: $850 million for 5 container newbuildings; $25 million for upgrades.
- Book equity ratio 26%, reflecting prudent financial management.

**【Q&A Highlights】**
- Hercules: Focused on harsh environment markets (North Sea, Canada); no immediate Gulf of Mexico potential due to rig specifications.
- Tanker fleet: 4 LR2 product tankers with Trafigura have 2-year options and profit-sharing; long-term visibility pending market conditions.
- Buyback: $80 million remaining of $100 million program; $10 million repurchased YTD at $7.98 average price.
- Future transactions: Open to opportunities across segments (dry bulk, car carriers) with strong counterparties; no fixed investment timeline.
- Red Sea: Slow return to normal routes expected; potential reduction in operating expenses if trade resumes.


SFL Corporation Ltd. (SFL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SFL

SFL fundamentals

You can ask Aime