SFL (SFL) Q2 2025 earnings summary

Executive summary

• Reported Q2 2025 revenues of $194 million and adjusted EBITDA of up to $112 million, with EBITDA over the last 12 months at $526 million.

• Declared 86th consecutive quarterly dividend of $0.20 per share, representing a 9% yield based on recent share price.

• Ongoing fleet renewal through divestment of older, less efficient vessels, generating over $200 million and freeing up investment capacity.

• Secured a five-year charter extension for three container vessels, adding $225 million to the $4.2 billion contracted revenue backlog, with over two-thirds from investment-grade customers.

• Charter hire received totaled $194 million, with 87% from shipping and 13% from energy.

Financial highlights

• Q2 operating revenues were $192.6 million, with net profit of up to $1.5 million or $0.01 per share, compared to a net loss of $32 million in Q1.

• Adjusted EBITDA was up to $112 million, impacted by dry dock expenses; net gain on asset sales was $4.2 million.

• Cash and cash equivalents at quarter end were $156 million, with total available liquidity exceeding $205 million and $49 million in undrawn credit lines.

• Gross charter hire: $194 million, with $82 million from container fleet, $26 million from car carriers, $41 million from tankers, and $19 million from dry bulk.

• Net debt at quarter end was approximately $2.66 billion.

Outlook and guidance

• Fixed rate charter backlog stands at $4.2 billion, with 66% to over two-thirds from investment-grade customers, providing strong cash flow visibility.

• $850 million in remaining CapEx for five container newbuilds, with deliveries through 2028, to be funded by debt and pre-/post-delivery financing.

• Dry dock and upgrade costs expected to decrease significantly in Q3 and Q4, normalizing after a heavy first half.

• Ongoing search for new employment for the idle Hercules rig, but timing remains uncertain and market remains challenging.

• Committed to reducing carbon footprint with 11 LNG dual-fuel vessels in operation or under construction.