SFL (SFL) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 net income of $21 million ($0.16 per share), with gross revenue of $199 million and adjusted EBITDA of $131 million.

• Declared 82nd consecutive quarterly dividend, $0.27 per share, representing a 9% yield.

• Fixed rate backlog increased to $4.9 billion, driven by new contracts, vessel acquisitions, and charter extensions.

• Raised $100 million in a public share offering and secured $700 million in new financing commitments.

• Achieved full cash flow from new car carrier builds; lower charter revenues from drilling rigs due to maintenance and accounting timing.

Financial highlights

• Q2 2024 gross revenue: $199 million; adjusted EBITDA: $131 million; net income: $21 million ($0.16 per share).

• Dividend per share: $0.27, with a yield of approximately 9%.

• Cash and cash equivalents at quarter end: $186 million.

• Book equity ratio at quarter end: 26.8%.

• Fixed rate backlog stands at $4.9 billion, concentrated on long-term charters.

Outlook and guidance

• Expect materially higher Q3 revenues from drilling rigs as deferred mobilization fees and costs are recognized.

• Charter backlog at $4.9 billion with a weighted average remaining term of 6.7 years.

• Ongoing fleet expansion with 11 LNG dual-fuel vessels expected to be in operation or under construction.

• Board expects continued high earnings visibility and attractive dividends due to diversified long-term charters.

• Inflationary pressures and higher newbuild prices may support future shipping rates and vessel values.