Q3 2024 SFL Corporation Ltd Earnings Call Transcript
Key Points
- SFL Corp Ltd (SFL) announced its 83rd consecutive dividend, maintaining a strong commitment to returning value to shareholders with a 10% dividend yield.
- The company reported revenues of over $260 million for the third quarter, with an EBITDA equivalent cash flow of approximately $167 million, showing significant growth from the previous quarter.
- SFL Corp Ltd (SFL) has a fixed rate backlog of approximately $4.7 billion, with two-thirds of this from investment-grade customers, providing strong cash flow visibility.
- The company has successfully renewed and extended multiple existing charters and ordered five large container vessels with 10-year time charters, adding $1.2 billion in backlog.
- SFL Corp Ltd (SFL) has effectively addressed short-term debt maturities by raising a new unsecured bond loan and refinancing existing debt, demonstrating strong financial management.
- The company faced approximately $5.6 million in negative non-cash mark-to-market and one-off items during the quarter.
- Operating costs increased significantly due to new vessel deliveries, scheduled dry dockings, and the Hercules rig being back on contract.
- The Hercules drilling rig's revenue and costs are subject to US GAAP accounting rules, which can lead to fluctuations in reported financials.
- SFL Corp Ltd (SFL) has some legacy assets from previous sale and leaseback transactions, which may not align with its current long-term charter strategy.
- The company has older container vessels approaching 20 years, which may need to be sold or rechartered, potentially impacting future revenue.
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Hello, everyone and welcome to SFL's third-quarter, 2024 conference call. My name is Espen Nilsen, I'm Vice President of Investor Relations in SFL. Our CEO Ole Hjertaker will start the call with an overview of the third quarter highlights then our Chief Operating Officer Trym Otto Sjølie will comment on vessel performance matters, followed by our CFO Aksel Olesen, who 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 US 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.
Forward-looking statements are not guarantees of future performance. These statements are based on our current plans
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