SFL (SFL) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues exceeded $230 million, with net income of $20.2 million or $0.15 per share, and adjusted EBITDA of $132 million.

• Declared 84th consecutive quarterly dividend of $0.27 per share, yielding approximately 10%.

• Fixed rate charter backlog stands at $4.3 billion, with over $2 billion added in 2024 and a majority from investment-grade customers.

• Awarded $48 million compensation from Seadrill in a Norwegian court related to the Hercules rig; ruling subject to appeal.

• Nine new vessels delivered in 2024, including five large container vessels ordered, expanding the fleet and backlog.

Financial highlights

• Q4 2024 gross charter hire was $232 million; container fleet contributed $85 million, car carriers $26 million, tankers $42 million, and dry bulk $23 million.

• Adjusted EBITDA for Q4 was $132 million; net profit was $20.2 million or $0.15 per share.

• Operating and G&A expenses increased due to dry dockings and new vessel deliveries, totaling $169.6 million.

• Cash and cash equivalents at quarter end were $135 million.

• Gain of $5.4 million from sale of Green Ace container vessel; Asian Ace sale expected to yield further gains.

Outlook and guidance

• Over $2 billion in new fixed-rate charter backlog added in 2024, supporting future revenue visibility.

• Majority of backlog contracted with investment-grade counterparties, enhancing earnings stability.

• Focus on modern, fuel-efficient assets and ongoing investments in LNG dual-fuel vessels.

• Expectation for Hercules rig to remain idle in H1 2025, with prospects improving in H2 and into 2026.

• Dividend policy remains stable, with payout decisions based on long-term prospects and cash flow stability.