Shipping entity SFLcorp (SFL) reported Q2 2025 results earlier today. Results include
- Rev of $192.6M (including $1.1M of profitshare)
- Operating income of $45.5M
- Net Income of $1.5M
- Declared dividend of 20c/sh (reduction from 27c/sh in prior qtr)
https://ml-eu.globenewswire.com/Resource/Download/343c292a-8aff-4b87-9f9c-3edcda245731
While the company has announced a $100M share buyback, the company has other challenges. a. The size of the SFL fleet is declining. Specifically, older Supramax vessels have been sold, with one left to deliver in Q3 2025. b. In Q3 2025, the fleet of 8 Cape vessels will be acquired by Golden Ocean for $115M. The vessels were debt free per end of Q2 2025, so the proceeds will be helpful to SFL c. A group of older container vessels have been returned to charterer, MSC. d. One of SFL’s two offshore drilling assets is not being utilized. Asset is warm-stacked, and thus, an expense to SFL with no revenue coming in from the asset.
SFL share price taking a significant whack today (down 16.65%). Overdone? Maybe a little bit. While the dry bulk fleet shrinks in size, the Cape vessels being delivered to the charterer will generate a net cash contribution to SFL. The company does have some newbuilds that deliver and still have some capex. However, the vessels have been forward contracted, so financing should be available.
No SFL position currently. But, certainly appealing after the price whack.