SFL (NYSE:SFL) Releases Earnings Results, Beats Expectations By $0.14 EPS

SFL (NYSE:SFL) posted its earnings results on Tuesday. The shipping company reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.14, FiscalAI reports. SFL had a return on equity of 0.26% and a net margin of 4.37%.The business had revenue of $174.48 million during the quarter, compared to analyst estimates of $170.77 million. During the same quarter last year, the firm earned ($0.24) earnings per share. The company’s revenue for the quarter was down 6.8% compared to the same quarter last year.

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

• SFL raised its quarterly dividend to $0.22 per share, marking its 89th consecutive quarterly dividend and a 10% increase from the prior quarter.
• The company reported $174 million in revenue, $108 million of adjusted EBITDA, and $26 million in net income for Q1, while emphasizing stable cash generation and a strong backlog.
• SFL added about $170 million of backlog with a new Hercules drilling rig contract starting in Canada in Q1 2027, strengthening long-term earnings visibility for the energy segment.
• The company said its tanker exposure is benefiting from an exceptionally strong spot market, with the two Suezmax vessels generating higher cash flow than the prior four-vessel charter arrangement and management looking for longer-term follow-on charters.
• SFL ended the quarter with over $280 million of available liquidity, refinanced rig facilities on favorable terms, and completed a $75 million bond tap; it also plans to redeem its $150 million 2029 bonds with existing liquidity.

SFL Stock Performance

NYSE:SFL traded up $0.14 during trading hours on Thursday, reaching $12.56. 609,080 shares of the stock were exchanged, compared to its average volume of 1,487,526. The company has a quick ratio of 0.35, a current ratio of 0.36 and a debt-to-equity ratio of 2.04. The firm has a 50 day simple moving average of $10.96 and a 200-day simple moving average of $9.36. SFL has a 52 week low of $6.73 and a 52 week high of $12.94. The stock has a market capitalization of $1.82 billion, a P/E ratio of 52.15 and a beta of 0.42.

SFL Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Shareholders of record on Wednesday, May 27th will be issued a dividend of $0.22 per share. The ex-dividend date of this dividend is Wednesday, May 27th. This represents a $0.88 dividend on an annualized basis and a yield of 7.0%. This is a boost from SFL’s previous quarterly dividend of $0.20. SFL’s dividend payout ratio (DPR) is -400.00%.

Wall Street Analysts Forecast Growth

SFL has been the subject of a number of recent analyst reports. BTIG Research raised their price objective on SFL from $12.00 to $14.00 and gave the company a “buy” rating in a research note on Tuesday. Wall Street Zen upgraded SFL from a “sell” rating to a “hold” rating in a research note on Sunday, May 3rd. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of SFL in a research note on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $14.00.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Russell Investments Group Ltd. lifted its holdings in SFL by 4.8% during the 4th quarter. Russell Investments Group Ltd. now owns 29,778 shares of the shipping company’s stock worth $233,000 after buying an additional 1,353 shares during the last quarter. Brighton Jones LLC lifted its holdings in SFL by 8.2% during the 4th quarter. Brighton Jones LLC now owns 19,395 shares of the shipping company’s stock worth $198,000 after buying an additional 1,474 shares during the last quarter. Cetera Investment Advisers lifted its holdings in SFL by 10.4% during the 2nd quarter. Cetera Investment Advisers now owns 16,034 shares of the shipping company’s stock worth $134,000 after buying an additional 1,510 shares during the last quarter. Mariner LLC lifted its holdings in shares of SFL by 6.7% in the 4th quarter. Mariner LLC now owns 24,473 shares of the shipping company’s stock worth $191,000 after purchasing an additional 1,542 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of SFL by 789.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,317 shares of the shipping company’s stock worth $28,000 after purchasing an additional 2,944 shares during the last quarter. 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.