SFL (NYSE:SFL) Posts Earnings Results

SFL (NYSE:SFL) issued its quarterly earnings data on Wednesday. The shipping company reported ($0.04) earnings per share (EPS) for the quarter, Briefing.com reports. SFL had a positive return on equity of 3.05% and a negative net margin of 0.20%.During the same period in the previous year, the firm posted $0.15 EPS. The company’s quarterly revenue was down 23.1% on a year-over-year basis.

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

• Dividend declared of $0.20 per share (88th consecutive quarter), implying ~9% yield and part of >$2.9 billion returned to shareholders historically.
• Q4 revenues of $176 million and an adjusted EBITDA-equivalent cash flow of $109 million (LTM EBITDA ~$450 million), supported by very high fleet utilization (~98.6%) and targeted efficiency/LNG upgrades.
• Suezmax transactions generated strong cash and returns — two 2015 vessels sold at about $57m each (recorded ~ $11.3m book gain and ~$26m net cash effect) and remaining 2020-built Suezmaxes trading in a stronger spot market with broker valuations >$80m.
• Reported a GAAP net loss of ~$4.7 million for the quarter driven by a $23 million settlement expense related to two Suezmax charter releases, highlighting potential P&L volatility from non‑recurring items and spot trading accounting rules.
• The offshore rig Hercules remains warm‑stacked/idle since Nov 2024, removing a formerly significant cash contributor (rig debt was repaid on the balance sheet and a ~$100 million refinancing is expected subject to customer/closing conditions).

SFL Stock Up 10.9%

Shares of SFL stock traded up $1.00 during mid-day trading on Wednesday, hitting $10.13. The company’s stock had a trading volume of 2,073,721 shares, compared to its average volume of 1,449,012. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.42 and a current ratio of 0.42. SFL has a 52-week low of $6.73 and a 52-week high of $10.84. The stock has a market cap of $1.48 billion, a price-to-earnings ratio of -1,013.50 and a beta of 0.47. The business has a 50-day moving average price of $8.25 and a 200 day moving average price of $8.10.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. BTIG Research raised their price target on SFL from $10.00 to $11.00 and gave the company a “buy” rating in a report on Tuesday, November 11th. Wall Street Zen raised SFL from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. Finally, Weiss Ratings raised SFL from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $11.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SFL. Brighton Jones LLC grew its position in SFL by 8.2% in the 4th quarter. Brighton Jones LLC now owns 19,395 shares of the shipping company’s stock worth $198,000 after purchasing an additional 1,474 shares during the period. Diversify Advisory Services LLC bought a new stake in shares of SFL in the second quarter worth $179,000. Russell Investments Group Ltd. increased its position in SFL by 5.3% during the third quarter. Russell Investments Group Ltd. now owns 28,425 shares of the shipping company’s stock valued at $214,000 after acquiring an additional 1,421 shares during the last quarter. Sei Investments Co. bought a new position in SFL in the second quarter valued at about $272,000. Finally, Quantinno Capital Management LP purchased a new position in SFL in the second quarter worth about $464,000. Institutional investors own 28.59% of the company’s stock.

About SFL

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.