SFL (NYSE:SFL) Posts Quarterly Earnings Results, Beats Expectations By $0.12 EPS

SFL (NYSE:SFL) released its earnings results on Wednesday. The shipping company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.14 by $0.12, FiscalAI reports. SFL had a return on equity of 3.41% and a net margin of 8.76%. The business had revenue of $201.58 million during the quarter, compared to analysts’ expectations of $179.97 million. During the same quarter last year, the firm posted $0.07 earnings per share. The firm’s revenue was up 13.4% on a year-over-year basis.

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 Stock Down 5.4%

SFL stock traded down $0.67 during mid-day trading on Wednesday, reaching $11.66. 1,573,902 shares of the company traded hands, compared to its average volume of 1,471,450. The stock has a market cap of $1.69 billion, a price-to-earnings ratio of 24.27 and a beta of 0.48. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 1.75. SFL has a fifty-two week low of $7.34 and a fifty-two week high of $13.98. The firm’s 50 day moving average price is $12.86 and its 200 day moving average price is $11.42.

SFL Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 9th were paid a dividend of $0.22 per share. The ex-dividend date was Wednesday, September 9th. This represents a $0.88 dividend on an annualized basis and a yield of 7.5%. SFL’s payout ratio is 183.33%.

Analyst Upgrades and Downgrades

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