SFL

On August 26, SFL Corporation Ltd. (NYSE:SFL) held its second-quarter earnings call, and the numbers explained why management sounded upbeat. Revenue climbed to $201 million from $174.5 million in the first quarter, while adjusted EBITDA rose 20% to $130 million. Net income reached $34 million, or $0.25 per share, up from $26 million the quarter before. The board also declared its 90th consecutive quarterly dividend, this one worth $0.22 per share. That kind of streak does not happen by accident. Two aging Suezmax crude tankers did much of the heavy lifting. Freed from a long-term charter that paid around $30,000 per day, the vessels earned an average spot rate of $54,000 per day in the first quarter and then $133,000 per day in the second, more than $100,000 per day higher than the old charter rate. Management said 63% of third-quarter days are already booked at roughly $93,000 per day, so the windfall has not faded yet. Car carriers added just as much to the story. SFL locked in new three-year charters on two 20-year-old vessels, the SFL Conductor and SFL Composer, adding $83 million to backlog, and ordered four dual-fuel newbuildings for about $360 million, two of which already carry five-year charters with an Asian automaker worth $150 million, rising to $300 million if an option is exercised. Chief Operating Officer Trym Sjølie pointed to "growth of the China volumes" as the demand driver behind the segment. Across the whole fleet, the charter backlog now stands at $3.8 billion, roughly 65% of it with investment-grade customers, and utilization hit 100% for car carriers and 99.3% for container ships. Since 2004, SFL has paid out more than $32 per share in dividends without missing a quarter. The spot market that made the quarter looks fragile by nature. Rates that jump from $54,000 to $133,000 per day in three months can fall just as fast, and the 63% coverage at $93,000 for the third quarter already hints at a cooler run rate ahead. GAAP complicates the picture further, since spot revenue is booked only when cargo is on board, so the final tally depends on how trading goes into the close of the quarter. The energy segment tells a different story than the rest of the fleet. It ran at just 50% utilization because the Hercules rig sat warm-stacked awaiting its Canada contract, even as the Linus rig kept generating steady revenue under a deal running through May 2029. SFL also has $1.2 billion of remaining capital spending ahead across five container vessels and four PCTC newbuildings, and it ordered two of the new car carriers without charters attached, a departure from its usual practice, betting that shipyards being "sold out well into 2030," as CEO Ole Hjertaker put it, will make it easy to find takers. To help fund the buildout, SFL issued 8.8 million new shares through its ATM and dividend reinvestment programs, raising $100 million, and it redeemed a $150 million bond in May 2026 using proceeds from a $75 million bond tap. Hedge fund ownership slipped to 24 funds holding SFL shares, down from 26 the quarter before, a modest pullback rather than a rush for the exits. Short interest sits at just 2.78% of the float, which signals little organized skepticism toward the stock. That combination suggest that investors are watching the spot rate swings rather than positioning aggressively in either direction. SFL's second quarter leaned heavily on two tankers catching a historic spot market, layered on top of a shipping business that keeps signing long-term car carrier and container charters. The 90th straight dividend and the $3.8 billion backlog show a company built for steady, contracted cash flow, but the quarter's biggest gains came from the part of the fleet with the least predictability. For the bullish story to keep playing out, Suezmax rates need to hold up better than history suggests spot rates ever do, and the uncontracted car carrier newbuildings need charters to materialize while shipyard scarcity persists into 2030. While we acknowledge the potential of SFL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Wednesday, Aug. 26, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Espen Gjøsund Chief Executive Officer - Ole Hjertaker Chief Operating Officer - Trym Sjølie Chief Financial Officer - Aksel Olesen Need a quote from a Motley Fool analyst? Email [email protected] Espen Gjøsund: Welcome to SFL second quarter 2026 conference call. My name is Espen Gjøsund, and I am Vice President of Investor Relations in SFL. Our CEO, Ole Hjertaker, will start the call with an overview of the second quarter highlights. Then our Chief Operating Officer, Trym Sjølie, will comment on vessel performance matters, followed by our CFO, Aksel Olesen, will take us through the financials. The conference call will be concluded by opening up for questions, and I will explain the procedure to do so prior to the Q&A session. Before we begin our presentation, I would like to note that this conference call will contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, estimates, or similar expressions are intended to identify these forward-looking statements. Please note that forward-looking statements are not guarantees of future performance. These statements are based on our current plans and expectations and are inherently subject to risks and uncertainties that could cause future activities and results of operations to be materially different from those reported in the forward-looking statements. Important factors that could cause actual results to differ include, but not limited to, conditions in the shipping, offshore, and credit markets. You should therefore not place undue reliance on these forward-looking statements. Please refer to our filings within the Securities and Exchange Commission for a more detailed discussion of risks and uncertainties, which may have a direct bearing on operating results and our financial condition. Then I will leave the word over to our CEO, Ole Hjertaker, with highlights for the second quarter. Ole Hjertaker: Thank you, Espen. We are pleased to celebrate our 90th consecutive dividend and $3 billion in accumulated dividend payouts today. Over the years, we have firmly positioned SFL as a maritime infrastructure company with a diversified high-quality fleet, and we keep adding new business. For the second quarter, we reported revenues of $201 million and an EBITDA equivalent cash flow of $130 million, which is 20% higher than the first quarter. Over the past 12 months, EBITDA amounts to $461 million, reflecting the continued strength and stability in our operations. Net income in the quarter was $34 million, or $0.25 per share, and the dividend declared is $0.22 per share. In aggregate, we have now returned more than $32 per share in dividends since 2004, not missing a single quarter on the way. We have a robust charter backlog of $3.8 billion with a very strong counterparty profile, where 2/3 of the backlog is to customers with investment credit rating. During the quarter, we agreed to charter our older car carriers, SFL Conductor and SFL Composer, on new three-year charters back to back with the current Volkswagen charters. We are not at liberty to disclose the name of our charterer, but it is linked to a leading global liner company based in Asia. Despite being 20 years old, the vessels are maintained to a high standard, which makes them attractive in the chartering market also for premium customers. The new charter adds $83 million to our charter backlog. We have also recently ordered four dual-fuel 7,000 CEU capacity car carriers with delivery into 2029. The aggregate yard cost is approximately $360 million, with a majority payable closer to delivery. Two of the vessels have already been chartered out on 5 + 5 years charters from delivery to a major Asia based car manufacturer. The first fixed five-year period adds $150 million in backlog, which could increase to $300 million if the optional period is declared. The other two new buildings are open for charter, and we are in some discussions already. In the past, we have been reluctant to order vessels without charters attached, but we believe the dynamics in the car carrier market remain attractive, with most shipyards sold out well into 2030. We therefore expect to find charters for these as well in due course. During the second and third quarter, we raised an aggregate of $100 million in equity in the market utilizing our at the market or ATM and dividend reinvestment plan or DRIP programs. A total of 8.8 million shares has been issued, and we actually managed to raise the capital at a premium to the volume weighted average price or VWAP in this period. With good liquidity and a rising share price, we saw this as an opportunity to add investment capacity with limited dilution compared to an ordinary share offering, which normally carries significant discounts and fees. We have already deployed some of the capital into new projects, but for the avoidance of doubt, we have no plans to issue additional shares in the foreseeable future. This last quarter, we have also had significant benefits of having two modern Suezmax crude oil tankers employed in a booming spot market. These vessels were previously on a long-term charter at around $30,000 per day until December last year. This year, the market has been on fire, and in the first quarter we earned an average rate of $54,000 per day and then up to $133,000 per day in the second quarter, which is more than $100,000 per day per vessel higher than the charter rate last year. So far into the third quarter, we have covered 63% of the vessel days at an average charter rate of around $93,000 per day. Please note that the charter hire for vessels in the spot market is accounted for on a load to discharge basis pursuant to the U.S. GAAP, where we only recognize revenues when there is cargo on board the vessels. The final reported number will depend on trading towards the end of the quarter, including ballast days. While we are enjoying phenomenal cash flow from these vessels right now, we will look for new long-term charter opportunities for these vessels in due course. The two dry bulk vessels in the spot market also had increased revenues in the second quarter, but this is a very different market with less volatility compared to the large crude oil tankers. The difference in revenue is only marginal from an aggregate perspective. With that, I will now hand the call over to our Chief Operating Officer, Trym Sjølie. Trym Sjølie: Thank you, Ole. We have a diversified fleet of assets chartered out to first-class customers on mostly long-term charters, and the majority of our customer base is large industrial end users. Following the car carrier new building orders placed during the quarter, our portfolio now comprises 61 maritime assets, including vessels, rigs, and contracted new buildings. The fleet is made up of 30 container ships, 16 tankers, 11 car carriers, two dry bulk vessels, and two drilling rigs. Our backlog from owned and managed shipping assets stands at approximately $3.8 billion, up from $3.7 billion at the end of the first quarter, reflecting the new car carrier charters and new building commitments added in the period. The backlog is well diversified across segments. Container vessels account for close to 70% of contracted revenue, car carriers around 15%, our energy assets around 10%, and tankers the balance. On duration, the weighted average remaining charter term is 7.1 years on the container fleet, 5.9 years on the car carriers, and 3.5 years on the tankers. This gives us long visibility on the core of the portfolio. Around 2/3, or 65% of our contracted revenue is with investment-grade counterparties, which gives us a high degree of confidence in the earnings visibility of this portfolio, even in a volatile market environment. I would like to spend a moment on the car carrier segment, where we have added meaningful scale and visibility during the quarter. First, we agreed three-year time charter contracts for two of our existing PCTC vessels with new charters, adding firm backlog of approximately $83 million. Second, we have ordered four 7,000 CEU LNG dual-fuel PCTC new buildings with deliveries scheduled for 2029. As Ole just explained, two of these vessels have already secured long-term charters with the leading Asian car manufacturers, and we are working on employment for the remaining two. Taken together, these transactions added around $233 million of firm backlog in the quarter. Our total car carrier charter backlog now stands at $578 million, with a weighted average firm charter duration of 5.9 years. This reflects our longstanding strategy in the car carrier segment, pairing modern fuel-efficient tonnage with strong industrial counterparties on long-term contracts. Our existing charters with Volkswagen and K Line extend well into the next decade, and the new orders and charters further strengthen both the earnings profile and environmental credentials of this fleet. Our charter backlog is mainly derived from time charter contracts, and with the exception of four container ships on variable leases, the rest of the fleet is on time charter or operating in the short term or spot market. Gross charter hire from our fleet, including profit share, was around $199 million in the second quarter, and we had a total of approximately 4,620 operating days across the fleet. Utilization was strong across all the shipping segments. Container vessels ran at 99.3%, car carriers at 100%, tankers at 99.8%, and dry bulk at 99.4%. The energy segment ran at 50%. This reflects the Linus drilling rig operating through the quarter while Hercules remains warm stacked ahead of its upcoming contract. OpEx for the shipping fleet came in at about $37 million in the quarter, of which $2.2 million is dry docking cost. Two of our large container vessels completed their special survey dry dockings and upgrade works during the quarter. For reference, a typical cost for a 10-year special survey dry docking on a big container vessel like this is around $2.5 million. I will now give the word over to our CFO, Aksel Olesen, who will take us through the financial highlights of the quarter. Aksel Olesen: Thank you, Trym. Turning now to the cash flow slide. I find this valuable because it gives investors a clear view of the underlying operating performance, separate from the effects of non-cash and non-recurring items in the GAAP results. Before I begin, I would like to flag the required disclosure. This cash flow presentation is a non-GAAP measure prepared as a management tool to assess underlying performance. It is not prepared in accordance with U.S. GAAP, and it should not be considered in isolation or as a substitute for any GAAP measure. A full reconciliation of the most direct comparable GAAP figures is included in our earnings release filed this morning. The presentation also excludes certain non-cash charges and items we consider non-recurring, which can at times obscure the underlying run rate of the business. With that context, let me take you through the performance of the fleet. In total, we generated approximately $199 million in gross charter hire during the quarter, a significant increase compared to the previous quarter. Of that total, approximately $83 million was from our container fleet, which remained our largest contributor by charter hire. Turning to car carriers. The fleet generated approximately $27 million in gross charter hire during the quarter, a slight improvement from the first quarter. In tankers, the fleet generated approximately $62 million in gross charter hire, up from approximately $46 million in the prior quarter, a significant quarter-over-quarter improvement driven by our two Suezmax vessels trading in spot markets. Under U.S. GAAP, revenues for spot traded vessels are recorded on a load to discharge basis, whereby revenue is allocated only to days when cargo is on board. During the second quarter, our Suezmax tankers achieved an average daily spot time charter equivalent, or TCE per vessel, for approximately $133,000 compared to $54,000 in the first quarter. Our two Handymax product vessels trading in short-term market achieved average daily spot TCE per vessel of approximately $16,100 compared to $10,700 in the first quarter. As a result, in the second quarter, we recorded revenue of approximately $3 million compared to $2 million in the prior quarter. Moving to energy. Revenue from our energy assets was approximately $24 million for the quarter. This was driven by the Linus drilling rig, which remains on a long-term contract with ConocoPhillips running through May 2029, providing substantial contracted cash flow visibility. The Hercules is currently preparing its upcoming contract in Canada and is expected to begin contributing revenue in the first half of 2027. On the cost side, net operating and G&A expenses for the quarter came in at approximately $69 million, broadly in line with the prior quarter. Putting it all together, adjusted EBITDA for the quarter was approximately $130 million compared to approximately $108 million in the first quarter. Turning now to results under U.S. GAAP. For the quarter, we reported total operating revenues of approximately $201 million, compared to approximately $174.5 million in Q1. Operating expenses were approximately $69 million, in line with the previous quarter. I would like to clearly identify the non-recurring and those non-cash items that affected the GAAP net results this quarter so that investors can appropriately adjust their models. Mark-to-market gain on hedging derivatives of $3 million. Mark-to-market gain on equity investments of $1 million. After accounting for these items, we report a GAAP net profit of approximately $34 million for the quarter or $0.25 per share. This compares to the net profit of $26 million or $0.20 per share in Q1. Turning to the balance sheet. At quarter end, we held cash and cash equivalents of approximately $113 million, with an additional $160 million available under undrawn credit facilities, giving us a total available liquidity in excess of $270 million. In April, we completed our $75 million tap issue of our 2030 U.S. dollar senior unsecured bonds at 103.5, implying a yield of approximately 6.8%, an outcome we believe reflects the bond market's confidence in SFL's credit profile, and used part of the proceeds together with cash on the balance sheet to redeem SFL's $150 million bond due in May 2026 at maturity. Furthermore, we raised $63 million in new equity through ATM and DRIP programs, with a further $37 million raised subsequently at the quarter end. On newbuildings, the company has approximately $1.2 billion of remaining capital expenditures across five container vessels and four PCTC newbuildings, seven of which have long-term charters in place. Finally, our book equity ratio as of quarter end stood at approximately 29%. Before I hand the call back to Espen, let me close with a few summary points. The board has declared our 90th consecutive quarterly cash dividend of $0.22 per share. At current prices, that represents an annualized dividend yield of approximately 7%. Our charter backlog now stands at approximately $3.8 billion. Approximately 2/3 of that backlog is with customers carrying investment-grade credit ratings. That combination, scale, duration, and counterparty quality provides exceptional cash flow visibility and gives us the confidence to continue investing in growth. With strong balance sheets, ample liquidity, and disciplined capital allocation, we remain well positioned to pursue accretive investment opportunities. The maritime asset market continues to evolve, and we believe SFL is uniquely positioned through a long-term charter model, diversified fleet, and access to capital to continue generating value for shareholders. Thank you all for joining us this morning. I will now hand the call back to Espen in order to open line for questions. Espen Gjøsund: Thank you, Aksel. We will now open for a Q&A session. For those of you who are following this presentation through Zoom, please use the raise hand function under reactions in the toolbar to ask a question. When your name's called out, please unmute your speaker to ask your question. Thank you. We will have our first question from Sherif Elmaghrabi. Please unmute your speaker to ask your question. Sherif Elmaghrabi: Hey, thanks, and good afternoon. Thanks for taking my questions. Starting with the car carrier market, could you just shed a little bit of light on what it is about that market that's giving you confidence to order new builds on spec, especially because demand has been so strong across the shipping space? Trym Sjølie: Yes, maybe I can answer that, Ole. The big story on the car carrier market is the growth of the China volumes. It's been growing consistently over many years, while the investment in car carrier vessels, although strong in the past few years, there have been many years with low investment volume. That means there will be a lot of older vessels that will have to be phased out at some point. When we look at the balance or the demand for ships going forward, we see there's sort of a gap between supply and demand growing from 2029, 2030, and onwards, even with the strong ordering activity there has been lately. Sherif Elmaghrabi: Got it. I just want to pivot over to the rigs for a second. Given persistent disruptions in the Middle East, I'm wondering if that's changed the conversation you're having with charterers around the term of work for the Hercules, and maybe also if you could just remind us how long the extension options for the Hercules run. Ole Hjertaker: Yes. The Hercules is in Norway at the moment. It is being prepared for Canada operations. It will move in February. We are doing some upgrades on the rig, including removal or replacing some obsolete equipment, etc, so that rig will be ready to go and can work for a long time once it is active. The program is 400 days fixed with various options that could stretch it for roughly a similar additional period in total if all options are being exercised. We do see an underlying strengthening in the oil exploration and production market. Remember that this is a slow process where all companies typically work on longer schedules, so it is not like they turn around quickly and do a lot of extra activity. We see now in several markets that they are refocusing, looking at how they should invest more, including oil exploration and build out of existing fields. We remain positive on the long-term prospects for the drilling sector. Also, if you look at that specific unit, it is a high-end, harsh environment drilling unit. To build a new one would probably cost you north of $1 billion. The charter rates we see does not, at current level, justify building a new one. There is a significant uplift potential in the market before we expect to see much new supply coming in. Of course, our objective is to have that rig out working and keep it working, but we cannot make any promises on how the market will develop and what kind of charter rate we will have in the long run. We really look forward to having the rig out producing cash flows again. Sherif Elmaghrabi: That is very helpful. Thank you both. Ole Hjertaker: Thank you. Espen Gjøsund: Thank you. We will take our next question from Mr. Climent Molins. Please unmute your speaker to ask your question. Climent Molins: Hi, thank you for taking my questions. I wanted to start by following up on the car carrier newbuilds. You went for LNG dual-fuel propulsion on those assets. Could you talk a bit about the reasoning for that? Is this something your customers generally ask for, or do you expect the economics from dual-fuel fuels to justify the higher price tag? Trym Sjølie: It is clear that on, first off, nobody is building car carriers with conventional fuel only today. The option you really have is whether to do LNG, methanol, or ammonia dual-fuel vessels. What is maybe unique in the car carrier space is that the customers, i.e., the car manufacturers and their car buyers ultimately, demand or expect green transportation. We happen to believe that LNG is the best fuel at the moment based on availability and technical usability. The ships that we have already that are running on LNG dual-fuel, they are actually running exclusively on LNG. Typically, in the case of Volkswagen and K Line, which then transport on behalf of the Volkswagen and Toyota manufacturers mainly, they are running all their dual-fuel vessels on the dual-fuel, which is kind of the point. We are very confident that this is the right way to go. There are other fuel types available, but for us here, we believe in LNG for the moment, and that is the best intermediate solution for reducing emissions over time. Ole Hjertaker: Maybe adding in on that, what we have seen, and this is more a general observation in the market, when you have transportation of a product that is, I would say, close to finished, and in close proximity to the end user, if you can call it that, like vehicles and also finished goods on certain goods that are transported on container ships, you see a distinct willingness to pay for the, call it the greener fuels, the fuels with less emissions despite the higher cost. If you look at more raw materials, be it dry bulk or on the tanker side, we see the opposite. There, it is more focused on is there an arbitrage? Do we save money on buying the alternative fuel? If not, there is very limited willingness to pay up even from larger oil companies, industrial manufacturers. They typically don't focus so much on that on the raw material side. We have now a number of car carriers, both on the water and to be constructed. We have five large container ships with LNG dual-fuel, and we have two chemical carriers. We have now a significant portion of the fleet with alternative fuels and we think that is the way to go. Having a balanced fleet, modern, future proof. Climent Molins: That was a comprehensive answer, so thanks for the call. I also wanted to ask a bit about your overall backlog. How many of your contracts have purchase options on behalf of the charter? And should we expect any to be exercised soon? Ole Hjertaker: We have, for instance, some tankers that are soon through with their initial five-year charter period, where there are extension options that are coming up later in the year and into next year. As an example, we have seven tankers, three Suezmax and four LR2s. All those options are, compared to the current spot market, well in the money. The charter market is much higher than the charter rates that we have agreed in the optional period. Remember, the optional periods were based and were started or structured when the price level and the values of these assets and our acquisition cost was much, much lower than the prevailing market. That is our charter's options to potentially exercise that and keep those vessels longer. What we have structured, which could be potentially very interesting for us with some of these charters, we have structured a profit split type functionality where we can agree to sell the vessels in the market instead of extending the charter period. Then with a profit share mechanism where a charterer will get a part of that profit and we will get a part of that profit. In the tanker market, as you've seen with our spot traded Suezmax tankers, it's really on fire, both on the charter rate side, but also on the asset value side. Depending on our charterer's choice of option, it really can really go two ways. Either we continue with the vessels on the long-term charters producing good cash flows for us, or we could get a windfall of a profit if they would like to go that way. For us, it's really two good options. One of the options would be to get a lot of cash in our hands and book a big gain if we get there. If not, we will keep the vessels longer and hopefully have a very good trading life long term. Climent Molins: Makes sense. That's everything for me. I'll turn it over. Thank you for taking my questions. Espen Gjøsund: Okay. As there are no further questions from the audience, I would like to thank everyone for participating in this conference call. If you have any follow-up questions for the management, there are contact details in the press release, or you can get in touch with us through the contact pages on our webpage, sflcorp.com. Thank you everyone for tuning in. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 20% quarter-over-quarter increase in EBITDA equivalent cash flow, primarily driven by two Suezmax tankers operating in a high-rate spot market environment. Capitalized on a 'booming' tanker market where Suezmax spot rates reached $133,000 per day, significantly exceeding the previous long-term charter rate of $30,000 per day. Expanded the car carrier portfolio through the order of four dual-fuel newbuildings and new three-year charters for older vessels, adding $233 million to the firm backlog. Maintained high fleet utilization across shipping segments, with container, car carrier, and tanker segments all operating at 99.3% or higher. Utilized ATM and DRIP programs to raise $100 million in equity at a premium to VWAP, intentionally building investment capacity while minimizing dilution compared to traditional offerings. Focused on 'maritime infrastructure' positioning by maintaining a $3.8 billion backlog where two-thirds of contracted revenue is tied to investment-grade counterparties. Anticipates a growing supply-demand gap in the car carrier market from 2029 onwards due to rising Chinese export volumes and the necessary phasing out of older tonnage. Expects to secure employment for the two unchartered car carrier newbuildings before their 2029 delivery, citing limited shipyard capacity through 2030. Projects the Hercules drilling rig will begin contributing revenue in the first half of 2027 when it begins its 400-day fixed contract in Canada. Intends to transition spot-exposed Suezmax tankers back to long-term charters in due course to maintain the company's core stability-focused model. Management indicated no plans to issue additional shares in the foreseeable future following the recent $100 million capital raise. Redeemed a $150 million bond due in May 2026 using proceeds from a $75 million tap issue and existing cash reserves. Reported a 50% utilization rate in the energy segment as the Hercules rig remains warm stacked and undergoing upgrades ahead of its 2027 deployment. Identified a $1.2 billion remaining capital expenditure commitment for nine newbuilding vessels, with seven already secured by long-term charters. Noted that older car carriers (20 years old) remain attractive to premium customers due to high maintenance standards and current market scarcity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management cited the consistent growth of Chinese export volumes and a lack of historical investment in the sector as key demand drivers. They noted that most global shipyards are sold out until 2030, creating a favorable supply dynamic for vessels delivering in 2029. Management believes LNG is currently the most viable 'green' fuel based on technical usability and global availability. Observed a distinct willingness among car manufacturers and end-users to pay a premium for lower-emission transportation, unlike in raw material shipping (dry bulk/tankers). Several tanker charters have upcoming options that are 'well in the money' due to current high spot rates and low original acquisition costs. SFL has structured profit-sharing mechanisms that allow for either continued long-term cash flow or a 'windfall' gain if vessels are sold instead of extended. The rig is undergoing upgrades in Norway to replace obsolete equipment before moving to Canada in February. Management noted that current charter rates do not yet justify the $1 billion+ cost of newbuild harsh-environment rigs, suggesting significant long-term market upside.

Preliminary Q2 2026 results and quarterly cash dividend of $0.22 per share SFL Corporation Ltd. (“SFL” or the “Company”) today announced preliminary financial results for the quarter ended June 30, 2026. Highlights 90th consecutive quarterly dividend declared, $0.22 per share Total operating revenues of $201 million Adjusted EBITDA1 of $130 million, including $8 million from associated companies Reported net income of $34 million or $0.25 per share Strong contribution from two Suezmax tankers in the spot market New long term charters for PCTC vessels SFL Composer and SFL Conductor Newbuild order for four PCTC vessels, in combination with long term time charters Successfully raised $100 million in new equity Quarterly Dividend The Board of Directors has declared a quarterly cash dividend of $0.22 per share. The dividend will be paid on or around September 22, and the record- and ex-dividend date on the New York Stock Exchange will be September 9, 2026. The full report can be found in the link below and at the Company’s website www.sflcorp.com. Webcast and Presentation In connection with earnings release, a webcast will be held today at 10:00 AM (EST) / 4:00 PM (CET) In order to listen to the webcast and see the presentation, you may do one of the following: A: Join Conference Call Webcast in Listen Only Mode:Visit the Investor Relations section of the Company’s website at www.sflcorp.com and click on the link to "Webcast", or access directly via the webcast link below. The webcast with slideshow will be played live from this platform: SFL Corporation Ltd. Q2 2026 WebcastB: Join Conference Call and Participate in Live Q&A through Zoom: Join through the Zoom link below to ask a question:SFL Q2 2026 Q&A Meeting ID: 941 0132 7798Passcode: 932371 The presentation material used in the webcast may be downloaded at www.sflcorp.com and replay details are also available at the Company website. Questions may be directed to SFL Management AS: Investor and Analyst Contacts:Espen Nilsen Gjøsund, Vice President - Investor Relations, +47 47 50 05 00André Reppen, Chief Treasurer & Senior Vice President, +47 23 11 40 55Aksel Olesen, Chief Financial Officer, +47 23 11 40 36Media Contact:Ole B. Hjertaker, Chief Executive Officer, SFL Management AS+47 23 11 40 11 About SFL SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is comprised of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com. Cautionary Statement Regarding Forward Looking Statements This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 1 ‘Adjusted EBITDA’ is a non-U.S. GAAP measure. It represents cash receipts from operating activities before net interest and capital payments. Attachment SFL - Second Quarter 2026 Results

Interested in SFL Corporation Ltd.? Here are five stocks we like better. SFL’s second-quarter results improved significantly: Revenue reached approximately $201 million, adjusted EBITDA rose 20% sequentially to $130 million, and net income increased to $34 million, or $0.25 per share. The company declared its 90th consecutive quarterly dividend of $0.22 per share. Charter backlog grew to approximately $3.8 billion, supported by $233 million in new car-carrier contracts and orders. The fleet maintained utilization above 99% across container ships, car carriers, tankers and dry bulk vessels. Spot tanker rates drove the quarterly earnings increase: Suezmax vessels achieved average rates of about $133,000 per day, up from $54,000 in the first quarter. SFL ended the quarter with more than $270 million in available liquidity and approximately $1.2 billion in remaining newbuild capital expenditures. SFL (NYSE:SFL) reported second-quarter revenue of approximately $201 million and adjusted EBITDA of $130 million, up 20% from the prior quarter, as higher spot tanker earnings contributed to results. Net income was $34 million, or $0.25 per share, compared with $26 million, or $0.20 per share, in the first quarter. The company declared a quarterly cash dividend of $0.22 per share, marking its 90th consecutive dividend payment. Chief Executive Officer Ole Hjertaker said SFL has paid more than $3 billion in cumulative dividends and more than $32 per share since 2004. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects “Over the past 12 months, EBITDA amounts to $461 million, reflecting the continued strength and stability in our operations,” Hjertaker said during the company’s second-quarter conference call. SFL’s charter backlog increased to approximately $3.8 billion from $3.7 billion at the end of the first quarter. About 65% of contracted revenue is with investment-grade counterparties, according to Chief Operating Officer Trym Sjølie. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? The company’s fleet portfolio comprises 61 maritime assets, including vessels, rigs and contracted newbuildings. The portfolio includes 30 container ships, 16 tankers, 11 car carriers, two dry bulk vessels and two drilling rigs. Container vessels represent nearly 70% of contracted revenue, while car carriers account for roughly 15%, energy assets about 10%, and tankers the remaining share. The weighted average remaining charter term was 7.1 years for container ships, 5.9 years for car carriers and 3.5 years for tankers. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Fleet utilization remained high across shipping segments during the quarter: Container vessels: 99.3% Car carriers: 100% Tankers: 99.8% Dry bulk vessels: 99.4% The energy segment had 50% utilization, reflecting operations by the Linus drilling rig and the warm-stacked Hercules rig, which is being prepared for a Canadian contract expected to begin contributing revenue in the first half of 2027. SFL expanded its car carrier business during the quarter through new charter agreements and orders for four 7,000-CEU LNG dual-fuel car carriers scheduled for delivery in 2029. The aggregate shipyard cost is approximately $360 million, with most payments due closer to delivery. Two of the newbuildings have been chartered to a major Asia-based car manufacturer on five-year contracts with five-year extension options. The initial fixed period adds approximately $150 million to backlog and could rise to $300 million if the options are exercised. The other two vessels remain open for charter, although management said it is in discussions regarding employment. SFL also agreed to new three-year charter contracts for its older SFL Conductor and SFL Composer car carriers following the expiration of their existing Volkswagen charters. The contracts add approximately $83 million to backlog and are with a customer linked to a leading Asian liner company, management said. Combined, the car carrier transactions added approximately $233 million in firm backlog during the quarter. SFL’s total car carrier backlog stood at $578 million, with a weighted average firm charter duration of 5.9 years. In response to analyst questions, Sjølie said management sees continued growth in Chinese vehicle-export volumes and expects a growing supply-demand gap for car carriers from 2029 and 2030 onward, despite recent vessel ordering. He also said the company selected LNG dual-fuel propulsion because it believes LNG is currently the most available and technically practical lower-emission fuel option for the segment. Tankers generated approximately $62 million in gross charter hire during the second quarter, up from about $46 million in the first quarter. The increase was primarily driven by SFL’s two Suezmax crude tankers operating in the spot market. The Suezmax vessels earned an average spot time-charter equivalent rate of approximately $133,000 per day per vessel in the second quarter, up from approximately $54,000 per day in the first quarter. Hjertaker said the vessels had previously operated on a long-term charter at roughly $30,000 per day through December. For the third quarter to date, SFL had covered 63% of the Suezmax vessels’ available days at an average charter rate of about $93,000 per day. Management cautioned that reported spot revenue depends on trading activity, ballast days and the company’s load-to-discharge revenue recognition policy under U.S. GAAP. The company’s two Handymax product tankers operating in the short-term market earned average daily spot TCE of approximately $16,100 per vessel, compared with $10,700 in the first quarter. At quarter-end, SFL had approximately $113 million in cash and cash equivalents and another $160 million available through undrawn credit facilities, for total available liquidity exceeding $270 million. Its book equity ratio was approximately 29%. During April, SFL completed a $75 million tap issue of its 2030 senior unsecured bonds at 103.5, implying a yield of approximately 6.8%. The company used a portion of the proceeds and balance-sheet cash to redeem its $150 million bond due in May 2026 at maturity. SFL raised $63 million through its at-the-market equity and dividend reinvestment programs during the quarter, followed by another $37 million after quarter-end. Hjertaker said the company issued a total of 8.8 million shares during the second and third quarters and had no plans to issue additional shares in the foreseeable future. The company has approximately $1.2 billion in remaining capital expenditures tied to five container vessels and four car carrier newbuildings. Seven of those nine newbuildings have long-term charters in place. Ship Finance International Limited (NYSE: SFL) is an independent owner of modern, large-size ocean-going vessels that provides finance and leasing services to the global shipping industry. The company’s fleet encompasses a diversified mix of crude oil tankers, product and chemical tankers, liquefied natural gas (LNG) carriers, dry bulk carriers, container vessels and floating production storage and offloading (FPSO) units. By structuring long-term charter agreements and bareboat leases with major oil companies, commodity traders and offshore operators, Ship Finance International seeks to deliver stable cash flows and risk-adjusted returns for its shareholders. In its core business, Ship Finance International acquires or finances vessels through forward sales agreements and then charters them out under fixed-rate contracts, typically ranging from five to 20 years in duration. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SFL Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SFL Corporation Ltd. ("SFL" or the “Company”) (NYSE: SFL) plans to release its preliminary financial results for the second quarter of 2026 on Wednesday, August 26, 2026. SFL plans to host a conference call and webcast for all stakeholders and interested parties on Wednesday, August 26, 2026, at 10:00 AM (EST) / 4:00 PM (CET). Relevant material will on the same day be available from the Investor Relations section of the Company’s website at www.sflcorp.com. In order to listen to the conference call and presentation, you may do one of the following: A: Join Conference Call Webcast in Listen Only Mode:Visit the Investor Relations section of the Company’s website at www.sflcorp.com and click on the link to "Webcast", or access directly via the webcast link below. The webcast with slideshow will be played live from this platform: SFL Corporation Ltd. Q2 2026 WebcastB: Join Conference Call and Participate in Live Q&A through Zoom: Join through the Zoom link below to ask a question:SFL Q2 2026 Q&A Meeting ID: 941 0132 7798Passcode: 932371 A replay of the conference call will be available via the webcast on SFL’s website. SFL Corporation Ltd.Hamilton, Bermuda Investor and Analyst Contacts:Espen Nilsen Gjøsund, Vice President - Investor Relations, +47 47 50 05 00André Reppen, Chief Treasurer & Senior Vice President, +47 23 11 40 55Aksel Olesen, Chief Financial Officer, +47 23 11 40 36Media Contact:Ole B. Hjertaker, Chief Executive Officer, SFL Management AS+47 23 11 40 11 About SFL SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is comprised of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com. Cautionary Statement Regarding Forward Looking Statements This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Interested in SFL Corporation Ltd.? Here are five stocks we like better. SFL posted a solid Q1 2026 with operating revenue of about $174.5 million, net income of roughly $26 million, and adjusted EBITDA of $108 million. The company also raised its quarterly dividend to $0.22 per share, its 89th straight quarterly payout. Backlog and visibility improved to about $3.7 billion, with more than two-thirds tied to investment-grade counterparties. Management also announced a new Hercules drilling rig contract in Canada that adds about $170 million to backlog and begins in Q1 2027. Tanker spot-market strength boosted cash flow, especially from two Suezmax vessels that earned nearly $54,000 per day in Q1 and have performed even better in Q2. SFL said it is benefiting from a stronger market and plans to seek longer-term employment for those ships later. SFL (NYSE:SFL) reported first-quarter 2026 operating revenue of about $174.5 million and GAAP net income of approximately $26 million, or $0.20 per share, as management highlighted stable contracted cash flows, a growing offshore backlog and unusually strong tanker spot-market earnings. Chief Executive Officer Ole Hjertaker said the company generated an “EBITDA equivalent cash flow” of $108 million in the quarter, with EBITDA over the past 12 months totaling $443 million. SFL also increased its quarterly dividend to $0.22 per share, marking its 89th consecutive quarterly dividend. Hjertaker said the company has returned about $3 billion, or more than $30 per share, to shareholders through dividends since 2004. → Micron Investors Face a High-Stakes Moment After the Latest Rally The company’s charter backlog stood at approximately $3.7 billion, with more than two-thirds tied to customers with investment-grade credit ratings. Management said that counterparty profile supports earnings visibility across the fleet. Hjertaker highlighted a new contract for the ultra-deepwater harsh-environment drilling rig Hercules, which is expected to begin work in Canada in the first quarter of 2027. The firm portion of the contract covers 400 days and adds about $170 million to backlog, with shorter options that could extend the work beyond the firm term. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Hjertaker said SFL sees “significant demand” for harsh-environment, deepwater-capable semi-submersible drilling rigs toward the end of the decade. He noted that Hercules is the only rig in the market with a valid Canadian safety case and has previously worked in Norway and Namibia. During the question-and-answer session, Hjertaker said the upgrades needed for the Canada contract are relatively limited compared with other opportunities the company had evaluated. He said some equipment replacement is planned, while the customer will fund certain upgrades that benefit its operations. He did not provide a specific dollar figure, but said roughly half of the capital expenditures referenced in the company’s press release relate to Hercules. → Reading the Stripes: Is The Industrial Recession Over? SFL’s tanker segment benefited from two 2020-built Suezmax tankers operating in the spot market. Hjertaker said the company had previously agreed to release charters on those vessels in exchange for compensation of $11.5 million per vessel rather than selling them. SFL sold two older Suezmaxes previously chartered to the same customer, generating aggregate net cash proceeds after debt repayment of approximately $52 million. Hjertaker said the market strengthened significantly after the company made the decision in December, and that cash flow contribution from the two remaining vessels is now higher than the contribution from all four vessels under the prior charter arrangement. The two Suezmaxes earned nearly $54,000 per day on a time-charter-equivalent basis in the first quarter, compared with a cash breakeven below $20,000 per day after debt service. Hjertaker said the second quarter has been even stronger due to disruptions tied to the war in the Middle East. As of the call, SFL had covered 53% of vessel days for the quarter at an average charter rate of about $185,000 per day, although he cautioned that reported U.S. GAAP revenue for spot-market vessels is recognized on a load-to-discharge basis and that the full-quarter average is expected to be lower because of anticipated ballast days. Asked about tanker strategy, Hjertaker said SFL’s principal business remains long-term charters and that the company will seek longer-term employment for the two Suezmaxes “in due course.” He said some Aframax LR2 tankers have extension options later in the year and that, given current rates, SFL would not be surprised if those vessels were extended for another year or two. Chief Operating Officer Trym Sjølie said SFL’s current fleet consists of 57 maritime assets, including vessels, rigs and contracted newbuildings. The fleet includes two dry bulk vessels, 30 container ships, 16 large tankers, two chemical tankers, seven car carriers and two drilling rigs. Sjølie said charter revenue from the fleet was about $174 million in the first quarter, with 4,598 operating days. Utilization was 100% for container vessels and car carriers, while tankers and dry bulk vessels operated at 99% utilization. The energy segment ran at 50% utilization because Hercules remains warm stacked in Norway ahead of its new contract. Operating expenses for the shipping fleet were $42 million, broadly in line with budget. Sjølie also said three Maersk S-class container vessels — Maersk Sarat, Maersk Shivling and Maersk Skarstad — were in or completing drydock for significant upgrades tied to new five-year charter agreements with Maersk. In the financial review, SFL said gross charter hire totaled approximately $177 million across the fleet. The container fleet generated about $81 million, including profit-share income related to fuel savings on seven large container vessels. Car carriers contributed approximately $26 million, while tankers generated about $46 million, up from about $42 million in the prior quarter. Dry bulk revenue was about $2 million, down from $3 million in the prior quarter, as SFL has reduced exposure through vessel divestments. Energy assets generated approximately $23 million, primarily from the Linus drilling rig, which remains on a long-term contract with ConocoPhillips through May 2029. Total operating and general and administrative expenses were approximately $69 million. Adjusted EBITDA, a non-GAAP measure, was approximately $108 million, consistent with the fourth quarter of 2025. On a GAAP basis, SFL reported total operating revenue of about $174.5 million, compared with about $175.5 million in the prior quarter. The quarter included an $11.5 million gain on sale of assets, a $2.5 million mark-to-market gain on hedging derivatives and a $1.9 million mark-to-market gain on equity investments. The company’s net profit of $26 million compared with a net loss of $4.6 million, or $0.04 per share, in the fourth quarter. As of March 31, SFL had cash and cash equivalents of about $128 million and roughly $160 million available under undrawn credit facilities, for total available liquidity exceeding $280 million. The company also refinanced facilities tied to the Hercules and Linus rigs and, after quarter-end, completed a $75 million tap issuance of its 2030 U.S. dollar senior unsecured bonds at 103.5% of par, implying a yield to maturity of about 6.8%. SFL said it made approximately $56 million of scheduled loan amortization during the quarter. Remaining capital expenditure commitments for five contracted container newbuildings total about $850 million, which the company expects to fund through pre- and post-delivery financing. Book equity ratio at quarter-end was approximately 27%. In response to an analyst question about the 10% dividend increase, Hjertaker said the board does not provide dividend guidance, but bases dividend discussions on long-term cash flow expectations. He cited improved clarity around Hercules, lower required capital spending for that rig than under some other contract alternatives, strong vessel utilization and stable counterparties as factors supporting the increase. Hjertaker said SFL’s long-term objective remains returning cash flow to shareholders, while continuing to manage the fleet through long-term charters and disciplined capital allocation. Ship Finance International Limited (NYSE: SFL) is an independent owner of modern, large-size ocean-going vessels that provides finance and leasing services to the global shipping industry. The company’s fleet encompasses a diversified mix of crude oil tankers, product and chemical tankers, liquefied natural gas (LNG) carriers, dry bulk carriers, container vessels and floating production storage and offloading (FPSO) units. By structuring long-term charter agreements and bareboat leases with major oil companies, commodity traders and offshore operators, Ship Finance International seeks to deliver stable cash flows and risk-adjusted returns for its shareholders. In its core business, Ship Finance International acquires or finances vessels through forward sales agreements and then charters them out under fixed-rate contracts, typically ranging from five to 20 years in duration. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SFL Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.