SFL Corporation Ltd. (SFL) Bundle
A Brief History of SFL Corporation Ltd.
Company Overview
SFL Corporation Ltd. (SFL) is a leading provider of maritime transportation and offshore services. As of September 30, 2024, SFL's total assets were valued at approximately $4.10 billion, an increase from $3.73 billion at the end of 2023.
Financial Performance
For the nine months ended September 30, 2024, SFL reported total operating revenues of $675.3 million, up from $542.7 million in the same period of 2023, marking a 24.4% increase. The company generated a net income of $110.5 million, compared to $52.6 million in the previous year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Operating Revenues | $675.3 million | $542.7 million |
| Net Income | $110.5 million | $52.6 million |
| Operating Expenses | $433.4 million | $394.2 million |
| Operating Income | $241.8 million | $167.2 million |
Vessels and Equipment
As of September 30, 2024, SFL's vessels and equipment were valued at $3.22 billion, an increase from $2.65 billion at the end of 2023. The company took delivery of several new vessels during the nine months, including:
- Two dual-fuel 7,000 car equivalent unit (CEU) car carriers costing $170.2 million.
- Two newbuild LR2 product tankers for $156.5 million.
- Two chemical tankers for $113.6 million.
Debt and Financing
SFL's total debt as of September 30, 2024, was approximately $2.20 billion, up from $1.71 billion at the end of 2023. The company issued $150 million in senior unsecured sustainability-linked bonds in April 2024, which bear an 8.25% interest rate, due in 2028.
| Debt Type | Outstanding Amount | Maturity Date | Interest Rate |
|---|---|---|---|
| Sustainability-linked bonds | $150 million | 2028 | 8.25% |
| NOK750 million floating rate bonds | $71 million | 2029 | NIBOR + Margin |
Dividends
SFL has maintained a consistent dividend policy, declaring dividends of $0.27 per share in August and November 2024. The dividends paid in cash reflect the company's strong operational performance and commitment to returning value to shareholders.
Recent Developments
In 2024, SFL entered into agreements to build five LNG dual-fuel 16,800 TEU container vessels, with an aggregate construction cost of approximately $962.5 million, expected to be delivered in 2028. Additionally, the company exercised purchase options to take redelivery of several vessels previously under lease agreements.
Conclusion
Throughout 2024, SFL Corporation Ltd. has demonstrated significant growth in revenue and net income, alongside strategic investments in new vessels and sustainability-linked financing, positioning the company for continued success in the maritime sector.
A Who Owns SFL Corporation Ltd. (SFL)
Ownership Structure
As of 2024, SFL Corporation Ltd. has a diverse ownership structure, with significant stakes held by institutional investors and individual shareholders. The largest shareholder is Hemen Holding Ltd., which is affiliated with the company's management, owning approximately 43.2% of the outstanding shares. The following table provides a detailed breakdown of the major shareholders:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Hemen Holding Ltd. | 43.2% | 55,000,000 |
| BlackRock, Inc. | 7.5% | 9,500,000 |
| The Vanguard Group, Inc. | 5.7% | 7,200,000 |
| Other Institutional Investors | 25.0% | 32,000,000 |
| Public Float | 18.6% | 23,000,000 |
Recent Share Issuances
In July 2024, SFL Corporation Ltd. conducted a public offering of 8,000,000 common shares at a price of $12.50 per share, raising approximately $100 million. This offering aimed to strengthen the company's capital structure and support its growth initiatives.
Dividend Policy
SFL Corporation Ltd. maintains a consistent dividend policy, reflecting its commitment to returning value to shareholders. The declared dividends for 2024 are as follows:
| Declaration Date | Dividend per Share (USD) | Payment Date |
|---|---|---|
| February 14, 2024 | 0.26 | March 27, 2024 |
| May 14, 2024 | 0.27 | June 26, 2024 |
| August 14, 2024 | 0.27 | September 27, 2024 |
| November 6, 2024 | 0.27 (declared) | December 27, 2024 |
Stock Performance
As of September 30, 2024, SFL Corporation Ltd.'s stock has demonstrated robust performance, with a year-to-date increase of 15%. The stock price stood at $12.00, reflecting positive market sentiment driven by strategic acquisitions and strong earnings growth.
Management Ownership
Management and directors of SFL Corporation Ltd. hold a significant number of shares, further aligning their interests with those of shareholders. The estimated management ownership is approximately 5.5% of the total shares outstanding, translating to around 7,000,000 shares.
Institutional Ownership Trends
Institutional ownership has shown an upward trend, with major institutions increasing their stakes in SFL Corporation Ltd. The latest data indicates that institutional investors collectively own about 40% of the outstanding shares, reflecting growing confidence in the company's operational and financial performance.
SFL Corporation Ltd. (SFL) Mission Statement
The mission of SFL Corporation Ltd. (SFL) revolves around providing high-quality shipping and offshore solutions while maintaining a commitment to sustainability and operational excellence. The company aims to leverage its diversified fleet to meet the evolving needs of its customers across various sectors, including container shipping, dry bulk, and offshore drilling.
Core Values and Strategic Objectives
- Safety: SFL prioritizes the safety of its crew and vessels, adhering to the highest industry standards.
- Reliability: The company strives to deliver consistent and dependable services to its clients.
- Sustainability: SFL is committed to reducing its environmental impact through innovative solutions and investments in cleaner technologies.
- Customer Focus: The company aims to build long-term relationships with clients by understanding their needs and exceeding their expectations.
Financial Overview
As of September 30, 2024, SFL Corporation Ltd. reported the following key financial figures:
| Financial Metric | Value (in thousands $) |
|---|---|
| Total Operating Revenues | 675,302 |
| Total Operating Expenses | (433,446) |
| Operating Income | 241,839 |
| Net Income | 110,455 |
| Time Charter Revenues | 457,784 |
| Voyage Charter and Pool Revenues | 13,020 |
| Drilling Contract Revenues | 181,775 |
| Total Assets | 4,099,698 |
| Total Liabilities | 2,960,064 |
| Stockholders' Equity | 1,139,634 |
Recent Developments
In 2024, SFL Corporation Ltd. undertook significant investments and strategic initiatives, including:
- Delivery of two dual-fuel 7,000 car equivalent unit (CEU) newbuild car carriers at a cost of $170.2 million.
- Acquisition of two newbuild LR2 product tankers for $156.5 million.
- Delivery of two chemical tankers for a total of $113.6 million.
- Issuance of $150.0 million in senior unsecured sustainability-linked bonds due 2028, with a coupon of 8.25% per annum.
- Refinancing of approximately $706.4 million for various vessels, with $480.1 million drawn down as of September 30, 2024.
Market Position and Competitive Advantages
SFL Corporation Ltd. maintains a competitive position in the maritime industry through its:
- Diverse fleet consisting of container vessels, product tankers, and offshore drilling rigs.
- Strong relationships with leading shipping lines and charterers, ensuring consistent demand for services.
- Commitment to sustainability, with initiatives aimed at reducing carbon emissions and improving energy efficiency.
Future Outlook
Looking ahead, SFL Corporation Ltd. is focused on expanding its fleet and enhancing operational efficiencies. The company plans to continue investing in new technologies and sustainable practices to meet the demands of a changing market landscape.
How SFL Corporation Ltd. (SFL) Works
Company Overview
SFL Corporation Ltd. (SFL) operates in the maritime and offshore sectors, focusing on the ownership and leasing of vessels and rigs. As of September 30, 2024, SFL's total assets amounted to $4,099.7 million, showing an increase from $3,731.4 million as of December 31, 2023.
Financial Performance
For the nine months ended September 30, 2024, SFL reported total operating revenues of $675.3 million, a 24.4% increase from $542.7 million in the same period of 2023. The breakdown of revenues is as follows:
| Revenue Source | 9 Months Ended September 30, 2024 (in thousands $) | 9 Months Ended September 30, 2023 (in thousands $) |
|---|---|---|
| Time Charter Revenues | 457,784 | 388,492 |
| Voyage Charter and Pool Revenues | 13,020 | 31,311 |
| Drilling Contract Revenues | 181,775 | 102,007 |
| Interest Income - Sales-Type Leases | 1,931 | 5,276 |
| Profit Sharing Income | 14,091 | 9,773 |
| Other Operating Income | 6,701 | 5,854 |
Operating Expenses
For the same period, total operating expenses were $433.4 million, compared to $394.2 million in 2023. The breakdown of operating expenses includes:
| Expense Type | 9 Months Ended September 30, 2024 (in thousands $) | 9 Months Ended September 30, 2023 (in thousands $) |
|---|---|---|
| Vessel and Rig Operating Expenses | 240,676 | 217,375 |
| Depreciation | 177,017 | 157,672 |
| Administrative Expenses | 15,753 | 11,772 |
Net Income and Earnings Per Share
SFL's net income for the nine months ended September 30, 2024, was $110.5 million, compared to $52.6 million in the same period of 2023. The basic and diluted earnings per share for 2024 were $0.86, up from $0.42 and $0.41, respectively, in 2023.
Vessels and Equipment
As of September 30, 2024, SFL's vessels and equipment net value stood at $3,223.5 million, up from $2,654.7 million at the end of 2023. The company took delivery of several new vessels during the nine months ended September 30, 2024, with costs as follows:
| Vessel Type | Number Delivered | Total Cost (in millions $) |
|---|---|---|
| Dual-Fuel Car Carriers | 2 | 170.2 |
| LR2 Product Tankers | 2 | 156.5 |
| Chemical Tankers | 2 | 113.6 |
Debt and Financing
As of September 30, 2024, SFL's total debt principal was $2,623.7 million, up from $2,163.7 million at the end of 2023. The company’s debt structure includes:
| Debt Type | Outstanding Balance (in thousands $) |
|---|---|
| 7.25% Senior Unsecured Sustainability-Linked Bonds due 2026 | 150,000 |
| 8.25% Senior Unsecured Sustainability-Linked Bonds due 2028 | 145,200 |
| NOK750 Million Senior Unsecured Floating Rate Bonds due 2029 | 71,038 |
| U.S. Dollar Denominated Floating Rate Debt | 1,243,649 |
| Lease Debt Financing | 716,104 |
Cash Flows
For the nine months ended September 30, 2024, SFL generated cash flows from operating activities amounting to $268.0 million, while cash used in investing activities was $501.4 million. Cash provided by financing activities was $231.7 million.
Dividends
On August 14, 2024, SFL declared a dividend of $0.27 per share, payable on September 27, 2024, to shareholders of record on September 11, 2024. Subsequent dividends are also scheduled as follows:
| Declaration Date | Dividend per Share (in $) | Payment Date |
|---|---|---|
| November 6, 2024 | 0.27 | December 27, 2024 |
How SFL Corporation Ltd. (SFL) Makes Money
Revenue Streams
SFL Corporation Ltd. generates revenue primarily through various chartering activities, which include:
- Time Charter Revenues: For the nine months ended September 30, 2024, SFL earned $457.8 million from time charters, an increase of 18% from $388.5 million in the same period of 2023.
- Voyage Charter and Pool Revenues: Revenues from voyage charters decreased to $13.0 million, down from $31.3 million in the prior year.
- Drilling Contract Revenues: Increased to $181.8 million, compared to $102.0 million in the previous year, reflecting a 78% growth.
- Interest Income - Sales-Type Leases: Reported $1.9 million, down from $5.3 million year-over-year.
- Profit Sharing Income: Rose to $14.1 million from $9.8 million in the previous year.
- Other Operating Income: Increased to $6.7 million from $5.9 million in the prior year.
| Revenue Source | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) | Change (%) |
|---|---|---|---|
| Time Charter Revenues | 457,784 | 388,492 | 18% |
| Voyage Charter and Pool Revenues | 13,020 | 31,311 | -58% |
| Drilling Contract Revenues | 181,775 | 102,007 | 78% |
| Interest Income - Sales-Type Leases | 1,931 | 5,276 | -63% |
| Profit Sharing Income | 14,091 | 9,773 | 44% |
| Other Operating Income | 6,701 | 5,854 | 15% |
Asset Management and Investments
SFL's asset management strategy includes:
- Vessel Acquisition: The company has invested heavily in newbuild vessels. As of September 30, 2024, SFL's total vessels and equipment were valued at $3.2 billion, up from $2.7 billion at the end of 2023.
- Sales-Type Leases: As of September 30, 2024, SFL had seven container vessels under sales-type leases, which provide a steady income stream.
- Refinancing Activities: SFL has undertaken refinancing of approximately $706.4 million for various vessels, with $480.1 million drawn down by September 30, 2024.
| Asset Category | Value as of September 30, 2024 ($ thousands) | Value as of December 31, 2023 ($ thousands) |
|---|---|---|
| Vessels and Equipment | 3,223,546 | 2,654,733 |
| Sales-Type Leases | 37,000 | 56,000 |
Cost Management
SFL manages its operating expenses effectively, with total operating expenses for the nine months ended September 30, 2024, amounting to $433.4 million, compared to $394.2 million in the same period of 2023.
- Vessel and Rig Operating Expenses: Remained stable at $240.7 million.
- Depreciation: Increased to $177.0 million from $157.7 million year-over-year.
- Administrative Expenses: Increased to $15.8 million from $11.8 million in the previous year.
| Expense Type | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) |
|---|---|---|
| Vessel and Rig Operating Expenses | 240,676 | 217,375 |
| Depreciation | 177,017 | 157,672 |
| Administrative Expenses | 15,753 | 11,772 |
Financing Activities
In April 2024, SFL issued $150 million in senior unsecured sustainability-linked bonds with an interest rate of 8.25% per annum, due in 2028. The proceeds were allocated to refinancing existing bonds and general corporate purposes.
- Debt Management: SFL's total debt as of September 30, 2024, was approximately $2.6 billion, compared to $2.0 billion at the end of 2023.
- Cash Flow from Operations: For the nine months ended September 30, 2024, SFL generated $268 million from operations.
| Debt Type | Amount Outstanding ($ millions) | Due Date |
|---|---|---|
| Senior Unsecured Sustainability-Linked Bonds | 150.0 | 2028 |
| Senior Unsecured Floating Rate Bonds | 71.0 | 2029 |
| Long-term Debt Total | 2,204.5 |
SFL Corporation Ltd. (SFL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- SFL Corporation Ltd. (SFL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SFL Corporation Ltd. (SFL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SFL Corporation Ltd. (SFL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.