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1. Company Snapshot

1.a. Company Description

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters.The company is also involved in the charter, purchase, and sale of assets.In addition, it operates in various sectors of the maritime, and shipping and offshore industries, including oil, chemical, oil product, container, and car transportation, as well as dry bulk shipments and drilling rigs.


As of December 31, 2021, the company owned six crude oil tankers, 15 dry bulk carriers, 35 container vessels, two car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers, and four oil product tankers.It primarily operates in Bermuda, Cyprus, Liberia, Norway, Singapore, the United Kingdom, and the Marshall Islands.The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd.


in September 2019.SFL Corporation Ltd.was incorporated in 2003 and is based in Hamilton, Bermuda.

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1.b. Last Insights on SFL

Negative drivers behind SFL Corporation Ltd.'s recent performance include concerns about future debt gearing and potential share dilution, despite fleet renewal efforts. The container-ship segment faces challenges with a large order book and potential lower rates, impacting conventional fuel vessels. Offshore drilling assets, particularly the "Hercules" rig, significantly contribute to revenue but face employment uncertainties, affecting Q4 income projections. The rig's expected idle period for at least two quarters will negatively impact financial results.

1.c. Company Highlights

2. SFL Corporation Ltd. Delivers Strong Quarterly Performance Amidst Challenging Market Conditions

SFL Corporation Ltd. reported revenues of $176 million for the fourth quarter, with an EBITDA equivalent cash flow of $109 million. The total EBITDA over the past twelve months stood at $450 million. The company's adjusted EBITDA for the quarter was $109 million, while the net loss was $4.7 million, largely due to non-recurring and non-cash items. The earnings per share (EPS) came in at -$0.14, missing estimates of $0.01. The company's financial performance was impacted by the sale of two Suezmax tankers, resulting in a net loss due to full settlement compensation being expensed as a cost under US GAAP.

Publication Date: Mar -03

📋 Highlights
  • Dividend Continuity and Yield:: 88th consecutive dividend of $0.10/share, yielding 9% based on current share price, with annual dividends exceeding $100 million.
  • Strong Q4 Financials:: Q4 revenue of $176 million and EBITDA-like cash flow of $109 million, with trailing 12-month EBITDA at $450 million.
  • Charter Backlog and Asset Utilization:: $3.7 billion charter backlog, 98.6% fleet utilization, and diversified fleet of 57 assets (vessels, rigs).
  • Suezmax Sale Impact:: Sale of two Suezmax tankers resulted in a net loss under GAAP but generated $80 million in charter-free value vs. $55 million book value.
  • Liquidity and Capital Position:: $151 million in cash and $46 million undrawn credit facilities, supporting disciplined capital deployment and dividend sustainability.

Operational Highlights

The company has strengthened its charter backlog by securing long-term agreements with strong counterparties and deploying high-quality assets. SFL Corporation Ltd. has a diversified fleet of 57 maritime assets, including vessels and rigs, with a charter backlog of approximately $3.7 billion. The fleet has a high utilization rate of 98.6%, with most charter contracts being time charter or short-term. As Ole Bjarte Hjertaker noted, "We've been cautious with our investments, but now see better dynamics for new business. Our board takes a disciplined approach, focusing on long-term deals that provide a strong return."

Valuation and Dividend Yield

The company's valuation metrics indicate a mixed picture. The P/E Ratio stands at -56.62, while the P/B Ratio is 1.56, and the P/S Ratio is 2.08. The EV/EBITDA ratio is 9.62, suggesting a relatively reasonable valuation. The Dividend Yield is 8.34%, which is attractive for income investors. The company's commitment to paying dividends is evident, with the board declaring the 88th consecutive cash dividend of $0.10 per share. Analysts estimate revenue growth of 12.7% for the next year, which could potentially support the dividend yield.

Liquidity and Debt Position

SFL Corporation Ltd. has a solid liquidity position, with $151 million in cash and cash equivalents and $46 million available on undrawn credit facilities. The Net Debt / EBITDA ratio is 5.94, indicating a relatively high debt burden. However, the company's ROIC is 4.83%, and the ROE is -2.63%, suggesting that the company's returns are not particularly strong.

Outlook and Strategy

The company is exploring new longer-term charters for its Suezmax vessels, while currently enjoying the spot market. The management is focused on deploying capital in a balanced way to build distributable cash flow. With a strong charter backlog and a diversified fleet, SFL Corporation Ltd. is well-positioned to navigate the challenges in the maritime industry. The company's disciplined approach to investments and commitment to paying dividends should support its long-term prospects.

3. NewsRoom

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SFL - Notice of Annual General Meeting 2026

Apr -07

Source: globenewswire.com

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SFL (NYSE:SFL) versus Martin Midstream Partners (NASDAQ:MMLP) Head to Head Contrast

Apr -06

Source: defenseworld.net

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SFL - Notice of Annual General Meeting 2026

Mar -27

Source: globenewswire.com

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SFL (NYSE:SFL) Shares Pass Above 200-Day Moving Average – Here’s What Happened

Mar -27

Source: defenseworld.net

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SFL - Filing of Annual Report 2025 on form 20-F

Mar -18

Source: globenewswire.com

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Dynamic Technology Lab Private Ltd Acquires 53,052 Shares of SFL Corporation Ltd. $SFL

Mar -11

Source: defenseworld.net

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Analyzing Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) & SFL (NYSE:SFL)

Mar -09

Source: defenseworld.net

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Stock Picks From Seeking Alpha's February 2026 New Analysts

Mar -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.67%)

6. Segments

Time Charter

Expected Growth: 2.8%

SFL Corporation's 2.8% Time Charter growth driven by increasing global seaborne trade, rising demand for energy transportation, and a growing orderbook of newbuild vessels. Additionally, the company's diversified fleet and strong relationships with major oil companies contribute to its growth momentum.

Drilling Contract

Expected Growth: 2.5%

SFL Corporation Ltd.'s drilling contract growth of 2.5% is driven by increasing offshore oil and gas exploration, rising demand for energy, and a growing backlog of projects. Additionally, the company's strategic partnerships, cost-saving initiatives, and investments in modern drilling technologies also contribute to this growth.

Voyage Charter

Expected Growth: 2.2%

SFL Corporation's Voyage Charter growth of 2.2% is driven by increasing demand for seaborne transportation, rising commodity prices, and a growing global economy. Additionally, the company's diversified fleet and strong relationships with charterers contribute to its growth. Furthermore, SFL's cost-saving initiatives and efficient operations also support its revenue expansion.

Profit Sharing

Expected Growth: 1.8%

SFL Corporation Ltd.'s 1.8% profit sharing growth is driven by increasing charter rates, fleet expansion, and cost savings initiatives. Strong demand for shipping services, particularly in the tanker and bulker segments, contributes to revenue growth. Additionally, the company's focus on operational efficiency and effective cost management enables it to maintain a competitive edge and boost profitability.

Other

Expected Growth: 1.5%

SFL Corporation Ltd.'s 1.5% growth in 'Other' segment is driven by increasing charter rates, fleet expansion, and improved operational efficiency. Additionally, the company's diversified revenue streams, strong customer relationships, and strategic cost management contribute to this growth.

Direct Financing Leases and Leaseback Assets Interest Income

Expected Growth: 1.2%

SFL Corporation Ltd.'s 1.2% growth in Direct Financing Leases and Leaseback Assets Interest Income is driven by increasing vessel acquisitions, expanding charter agreements, and rising interest rates. Additionally, the company's diversified portfolio of vessels and strong relationships with charterers contribute to the growth. Furthermore, the company's ability to secure long-term charters and fixed-rate debt also supports the growth.

7. Detailed Products

SoftBank's Global IP Network

A high-performance, low-latency network that connects major hubs across the globe, providing secure and reliable connectivity for businesses.

Colocation Services

Secure, reliable, and scalable data center solutions that provide customers with a flexible and customizable environment to house their IT infrastructure.

Cloud Connectivity

Direct, secure, and high-performance connectivity to major cloud providers, enabling seamless access to cloud-based applications and services.

IP Transit

A scalable and reliable IP transit service that provides customers with high-quality internet access and connectivity to the global internet backbone.

Managed Security Services

Comprehensive security solutions that provide real-time threat detection, intrusion prevention, and incident response to protect businesses from cyber threats.

Data Center Services

Comprehensive data center solutions that provide customers with a range of services, including data center design, build, and operation.

8. SFL Corporation Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SFL Corporation Ltd. is medium due to the availability of alternative transportation methods, such as buses and trains, which can substitute for the company's logistics services.

Bargaining Power Of Customers

The bargaining power of customers for SFL Corporation Ltd. is low due to the company's strong brand reputation and the lack of alternative logistics providers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SFL Corporation Ltd. is medium due to the company's dependence on a few key suppliers for fuel and equipment, which gives them some negotiating power.

Threat Of New Entrants

The threat of new entrants for SFL Corporation Ltd. is low due to the high barriers to entry in the logistics industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry for SFL Corporation Ltd. is high due to the competitive nature of the logistics industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.17%
Debt Cost 6.77%
Equity Weight 28.83%
Equity Cost 7.32%
WACC 6.93%
Leverage 246.88%

11. Quality Control: SFL Corporation Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SFL Corporation

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Quality: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.89$

Current Price

10.89$

Potential

-0.00%

Expected Cash-Flows