SFL Corp Q3 2023

Another busy week reporting company - SFL corp (SFL) on 11/08/23

Even if I am not following a company closely, I get an alert via my SeekingAlpha daily feed. This time - nothing. SeekingAlpha doesn’t have any SFL updates for Q3 2023.

From SFL’s website–

  • Revenue of $204.9M
  • Net income of $29.3M
  • Bumped up div to 25c/sh
  • Took delivery of first LNG powered car carrier

https://ml-eu.globenewswire.com/Resource/Download/0fda0722-fcea-4278-b367-73b2dc319e4c

  • Can’t say I completely get everything about the SFL Hercules drilling contract. Just that SFL have booked $47.5M of the $50M contract in Q3 2023. [Edit: Or maybe the demobilization occurred during the qtr end boundary, and could not be split] I’m guessing the new contract will be split between two quarters.
  • SFL Linux had some issues which took the vessel out of service for about two weeks.
  • The new car carrier vessel got a nice one way voyage charter prior to starting its contract with Volkswagen.
  • SFL bought back about 1.1M shares @ avg $9.27/sh (just a marker)
  • The GSL observation from earlier today had me pay attention to SFL’s Balance Sheet. Current ratio < 1.0 Trying to look at things positively, some improvement from end-of-year 2022. But still, not great. Cash is also down.

Tiny SFL position (Stays that way at this time)

1 Like

Interesting …

Q3 2023 Earnings Call transcript shows up almost a week later on 11/14/23

Not a whole lot of additional data.

  • SFL mgmt indicate a preference for short term contracts for the drilling assets vs long-term or bareboat charters (eg current Linus contract)
  • $8.5M EBITDA over about 2 months for one time voyage from Asia to Europe.
  • One analyst asked about the ST liabilities (I did not feel it was properly explained)
    SFL Corporation Ltd. (SFL) Q3 2023 Earnings Call Transcript | Seeking Alpha