SFL Corp Q4 2023

Announced today (02/14/24)

  • Rev/Charter hire of $209.5M
  • Net profit of $31.4M
  • Increased div to 26c/sh
  • Took delivery of second new car-carrier, with a long-term charter


Presentation slides with additional data

  • Increased capacity and fuel efficiency on 5 container ships
  • Linus has its second 5-year survey in 2024
  • Steady revenue from 3 segments, increased rev from one segment (car carriers) and decreased rev from one segment (offshore drilling)

Had a SFL stake thru mid Dec 2023, then sold. Does SFL have upside?
In 2024, the two older car carriers have contracts with great margins. The new car carriers will add to revenue. Hercules will complete a contract in Namibia, and then head back to Canada for a follow-on contract (with better terms). Offsetting that is the uncertain prospects for the smaller dry bulk vessels and some of the smaller container vessels. SFL also absorbs larger operating costs as a result of switching to a regular cost model (vs bareboat hire with the Seadrill model).

Is SFLā€™s current price worth the low-to-medium risk?