Summary of SFL Q3 2025 Earnings Call

1Key Financial Results and Metrics

Revenue: $178 million for Q3 2025.

EBITDA: Adjusted EBITDA of $113 million, with a trailing 12-month EBITDA of $473 million.

Net Income: $8.6 million, equating to $0.07 per share.

Dividend: Declared a quarterly dividend of $0.20 per share, marking the 87th consecutive dividend, with a total return to shareholders of approximately $2.9 billion.

Charter Backlog: Stands at $4 billion, with two-thirds contracted to investment-grade counterparties.

Liquidity: Approximately $278 million in cash and cash equivalents, plus $40 million in undrawn credit lines.

2Strategic Updates and Business Highlights

Continued focus on fleet renewal, selling older vessels and investing in cargo handling and fuel efficiency upgrades.

Sold 22 older vessels over the past year, reducing the average fleet age to under 10 years.

Secured new 5-year charters for three 9,500 TEU container vessels with Maersk, adding $225 million to the charter backlog from 2026 onwards.

Advanced commitment to cleaner technology with 11 vessels now capable of operating on LNG fuel.

High fleet utilization at 98.7%, with adjusted utilization at 99.9%.

3Forward Guidance and Outlook

Optimistic about securing new employment for the idle drilling rig Hercules, focusing marketing efforts in regions where it has unique capabilities.

The company remains open to investment opportunities across various maritime sectors, emphasizing a flexible approach to new transactions.

The outlook for the tanker segment remains cautious, with some vessels rolling off charters but potential for profit-sharing benefits.

4Bad News, Challenges, or Points of Concern

The Hercules drilling rig remains idle, with no immediate employment prospects, which could affect future earnings.

Decline in revenue from the dry bulk segment, contributing only $6 million compared to $19 million in previous quarters due to divestments.

Concerns regarding the geopolitical situation affecting container shipping routes, particularly in the Red Sea, although SFL has long-term charters that mitigate immediate impacts.

5Notable Q&A Insights

Management is actively seeking opportunities for the Hercules rig, considering both well intervention and exploration drilling.

The company is cautious about securing long-term work for tankers rolling off charters, noting the potential for profit-sharing arrangements.

There is ongoing dialogue regarding the geopolitical risks in the Red Sea, with management emphasizing the importance of crew and vessel safety.

The buyback program is ongoing, with $80 million remaining, and $10 million of shares repurchased at an average price of $7.98 per share. This summary encapsulates SFL's financial performance, strategic initiatives, and outlook while addressing potential challenges and insights from the Q&A session.