SFL Corp, Q3 2026 Earnings Call Transcript

SFL reported third-quarter revenue of $202 million, adjusted EBITDA of $122 million and net income of $37 million, maintaining its quarterly dividend at $0.22 per share. Its charter backlog has risen to about $5 billion, with roughly 58% of contracted revenue from investment-grade customers. Extensions with Hapag-Lloyd and new long-term charters across container, car-carrier and ammonia vessels have strengthened cash-flow visibility, while the fleet’s weighted average remaining container charter term is 8.3 years. Management expects the backlog and contracted fleet to support shareholder distributions and continued investment. Strong spot-market earnings from two Suezmax tankers boosted performance; one has since been fixed on a three-year charter, while the other will remain in the spot market for now as management sees the current market as exceptionally strong. The planned Canadian drilling campaign for Hercules is expected to generate significant revenue from March 2027, though mobilization is weighing on costs. Selling seven tankers is expected to generate about $275 million in net proceeds and a $175 million book gain over the next two quarters; newbuild commitments total $1.7 billion.