SFL Q1 2025 Earnings Report
Key Takeaways
SFL Corporation Ltd. reported a net loss of $31.9 million, or $0.24 per share, in Q1 2025, primarily due to impairments on older dry bulk vessels. The company received $193.5 million in charter hire and reported Adjusted EBITDA of $108.0 million from consolidated subsidiaries, alongside continued fleet renewal and share repurchases.
Reported a net loss of $31.9 million for the first quarter.
Received $193.5 million in total charter hire during the quarter.
Declared the 85th consecutive quarterly dividend of $0.27 per share.
Conducted a $10 million share buyback at an average price of $7.98 per share.
SFL
SFL
Forward Guidance
The press release mentions ongoing fleet renewal through divestment of older vessels and active share repurchases as part of the capital allocation strategy aimed at maximizing long-term distribution capacity per share. No specific financial guidance figures were provided.
Positive Outlook
- Continued commitment to fleet renewal through sale of older vessels.
- Focus on assets with charter backlog to support long-term dividend capacity.
- Active share repurchasing program to enhance distribution capacity per share.
- Upgrading several vessels to boost cargo intake and fuel efficiency.
- Charter extensions secured at higher rates on upgraded vessels.
Challenges Ahead
- Potential for future impairments on older assets.
- Impact of idle assets like the drilling rig Hercules on results.
- General market conditions in the volatile seaborne transportation industry.
- Exposure to fluctuations in charter hire rates and vessel values.
- Dependence on performance of charterers and other counterparties.