SFL (NYSE:SFL) Announces Quarterly Earnings Results

SFL (NYSE:SFL) released its quarterly earnings data on Wednesday. The shipping company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.21 by $0.05, FiscalAI reports. SFL had a net margin of 12.30% and a return on equity of 6.26%. The business had revenue of $201.58 million during the quarter, compared to analyst estimates of $187.80 million. During the same quarter last year, the business earned $0.07 earnings per share. SFL’s quarterly revenue was up 13.4% compared to the same quarter last year.

Here are the key takeaways from SFL’s conference call:

• Charter backlog reached approximately $5 billion, up more than $1.6 billion this year; management said about 58% is with investment-grade counterparties, with a substantial additional share tied to a customer one notch below investment grade.
• New long-term agreements added significant future revenue visibility, including a seven-year extension for six Hapag-Lloyd container ships that adds about $750 million to backlog, plus charters for new container and ammonia vessels.
• Third-quarter revenue was $202 million and net income was $37 million, or $0.26 per share; adjusted EBITDA fell to $122 million from $130 million in the prior quarter, while the company declared its 91st consecutive quarterly dividend of $0.22 per share.
• The agreed sale of seven tankers is expected to generate about $275 million in net cash proceeds and a roughly $175 million book gain as the vessels are delivered. One Suezmax remains in the spot market, offering potential upside but exposing results to volatile rates and voyage-revenue timing.
• Remaining newbuilding commitments total approximately $1.7 billion, while quarter-end cash and undrawn facilities provided more than $270 million of liquidity; management expects to fund the commitments mainly with credit facilities, and Hercules preparation is also contributing to elevated expenses.

SFL Trading Up 0.6%

SFL stock traded up $0.07 during trading hours on Friday, hitting $11.04. The company had a trading volume of 841,578 shares, compared to its average volume of 1,474,005. The firm has a market cap of $1.60 billion, a P/E ratio of 16.49 and a beta of 0.48. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.38 and a current ratio of 0.38. SFL has a 1 year low of $7.41 and a 1 year high of $13.98. The company has a 50-day moving average price of $12.83 and a two-hundred day moving average price of $11.45.

SFL Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 28th. Investors of record on Tuesday, December 15th will be issued a dividend of $0.22 per share. The ex-dividend date is Tuesday, December 15th. This represents a $0.88 dividend on an annualized basis and a yield of 8.0%. SFL’s dividend payout ratio (DPR) is presently 131.34%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. BTIG Research restated a “buy” rating and set a $14.00 target price on shares of SFL in a research report on Wednesday, August 26th. Wall Street Zen raised SFL from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Weiss Ratings raised SFL from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 27th. Finally, Benchmark restated a “buy” rating on shares of SFL in a report on Wednesday, August 26th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.00.

About SFL

SFL Corporation Ltd. is a maritime and offshore asset-owning company headquartered in Hamilton, Bermuda, and listed on the New York Stock Exchange under the symbol SFL. Formerly known as Ship Finance International Limited, the company was established in 2003 and has developed a diversified portfolio of vessels and offshore assets.

The company primarily acquires, owns and leases assets under long-term charter and lease agreements. Its portfolio has included crude oil and product tankers, dry bulk carriers, container ships, car carriers, offshore drilling units and other specialized maritime assets.