SFL – First Quarter 2022 Results

Preliminary Q1 2022 results and increased quarterly cash dividend of $0.22 per share

Hamilton, Bermuda, May 12, 2022. SFL Corporation Ltd. (“SFL” or the “Company”) today announced its preliminary financial results for the quarter ended March 31, 2022.


  • 73rd consecutive quarterly dividend declared, $0.22 per share
  • Operating revenue of approximately $152.4 million, and net profit of $47.0 million in the first quarter
  • Received charter hire1 of approximately $165.9 million in the quarter from the Company’s vessels and rigs, including $4.5 million of profit share
  • Adjusted EBITDA2 of $111.3 million from consolidated subsidiaries, plus an additional $7.7 million adjusted EBITDA2 from associated companies
  • Delivery of two LR2s and two Suezmax tankers which immediately commenced 5-year charters to a subsidiary of Trafigura, a world leading commodity trading and logistics company
  • Agreed to assign West Linus’ drilling contract with ConocoPhillips Skandinavia AS from Seadrill to an SFL subsidiary
  • Agreed to charter out six 14,000 teu container vessels to Hapag-Lloyd AG for a fixed period of 5 years, adding $540 million to the contracted backlog
  • In April, the Company sold the two last VLCCs on charter to Frontline for approximately $70 million and one container vessel for approximately $13 million including $12 million in profit share

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

«The recent sale of the two last VLCCs chartered to Frontline is noteworthy as this initially was SFL’s sole customer and all vessels were crude oil tankers. We now have a diverse fleet to multiple industry leading counterparties and continue to expand our business relationships as illustrated by the recent long term charter of six large container vessels to Hapag-Lloyd AG.

While most of our current fleet consists of container vessels, we also have investments in other maritime assets including offshore rigs. This market has shown an encouraging recovery the last two months, and our two harsh environment drilling rigs are well positioned to benefit from the increased activity level in the sector. One rig is employed on a long term market adjusted charter rate while the other rig is available for new contracts in 2023.

We added more than $1 billion to the fixed rate charter backlog during the first quarter, and with increasing long term cash flow visibility, we are pleased to increase the dividend by another 10% compared to last quarter.»

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.22 per share. The dividend will be paid on or around June 29, to shareholders on record as of June 15, and the ex-dividend date on the New York Stock Exchange will be June 14, 2022.

May 12, 2022

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

The full report can be found in the link below and at the Company’s website www.sflcorp.com.

Questions may be directed to SFL Management AS:

Investor and Analyst Contact

Aksel C. Olesen, Chief Financial Officer: +47 23114036
André Reppen, Chief Treasurer and Senior Vice President: +47 23114055
Marius Furuly, Vice President – Finance: +47 23114016

Media Contact

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About SFL
SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is split between container vessels, bulkers, tankers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company’s website: www.sflcorp.com

Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, including the bankruptcy proceedings relating to Seadrill and certain of its subsidiaries and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

1 Charter hire represents the amounts billable in the period by the Company and its associates for chartering out vessels and rigs. This is mainly the contracted daily rate multiplied by the number of chargeable days plus any additional billable income, including profit share. Long term charter hire relates to contracts undertaken for a period greater than one year. Short term charter hire relates to contracts undertaken for a period less than one year, including voyage charters.
2 ‘Adjusted EBITDA’ is a non-U.S. GAAP measure. It represents cash receipts from operating activities before net interest, amortization and capital payments.