SFL corp Q3 2022 results

Announced today 11/14/22

  • Rev of $177.5M
  • Net profit og $49.9M
  • Declared Q3 div of 23c/sh
  • Fleet additions of 2 feeder container vessels, a 2nd hand carrier, and Suezmax vessels (each with attached charters)
  • Two drilling assets have management transfer over to Odfjell from Seadrill. One asset (Linus) continues a charter with ConocoPhillips Skandanavia, while the Hercules wraps up a charter prior to its third SPS survey

https://ml-eu.globenewswire.com/Resource/Download/061c4854-74a6-4ed6-8f88-33674ab89455

The special survey on the drilling rig is an expensive and necessary maintenance item (abt $50M). Some risk, given that the rig has no forward charter. On the flip side, SFL have the existing financial resources to cover the cost, and the Harsh environment floater drilling fleet is more restricted.

Dividend looks ok @ 23c/sh. But this is a gradual dividend rebuild from a double dividend cut 35c => 25c => 15c a few year back. Good contract coverage on a majority of the SFL vessels and a diverse fleet

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11/18 News update
This is timely. SFL secured a contract for semi-submersible rig Hercules after the rig completes 3rd SPS in early 2023. Contract is for 135 days and valued at $50M. There is also a 60-day option.

Expensive asset contracted after SPS is definitely a positive development.

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