SFL Corporation Ltd Overview
SFL Corporation is a Bermuda-domiciled, Oslo-managed maritime infrastructure owner-lessor that acquires ships and offshore drilling rigs and charters them to industrial end-users on predominantly long-term, fixed-rate contracts. Originally created in 2003 as the lease-financing arm of John Fredriksen's Frontline, it has evolved into one of the most diversified listed shipowners globally, with a portfolio of 61 assets (including newbuildings) spanning container vessels, car carriers (PCTCs), crude and product tankers, dry bulk carriers and two harsh-environment drilling rigs. Its counterparties include Maersk, MSC, Hapag-Lloyd, Volkswagen Group, K Line, ConocoPhillips and other investment-grade companies; roughly two-thirds of its ~$4.6–4.8 billion fixed-rate backlog is with investment-grade customers. SFL's equity story rests on contracted cash-flow visibility and an unbroken record of 90 consecutive quarterly dividends since its 2004 NYSE listing, balanced against high leverage (debt/equity ~2.6x) and residual exposure to spot markets and rig re-contracting.
The company's own description
SFL describes itself (FY2025 20-F; Q2 2026 call) as a maritime and offshore asset-owning and chartering company engaged in the ownership, operation and chartering out of vessels and offshore-related assets on medium- and long-term charters, with a fleet comprising tankers, bulkers, container vessels, car carriers and offshore drilling rigs. Management has, since 2025, framed the company as a "maritime-infrastructure company with a diversified high-quality fleet", with "the majority of vessels and rigs on long term time charters to industrial end users" (CEO Ole B. Hjertaker, Q3 2025 release and Q2 2026 call). Its "About SFL" boilerplate emphasizes its dividend record since the 2004 NYSE listing and that long-term distribution capacity is supported by long-term charters and growth in the asset base.
Independent characterization
Economically, SFL is a hybrid of a ship-leasing company and a tonnage provider. It behaves like a leasing company in its capital structure (asset-backed bank debt, sale-leaseback-type financing, Nordic unsecured bonds) and in its charter structures (multi-year time charters and bareboat charters, often with purchase options and profit-sharing). It behaves like a shipowner in that, under time charters, it retains vessel operating responsibility (crewing, maintenance, technical management, via third-party and affiliated managers) and bears residual value and re-chartering risk. Its drilling rigs are a distinct, higher-risk exposure: since September 2022 SFL has contracted the Linus jack-up directly to ConocoPhillips and earns drilling contract revenue (rather than lease hire), making it an operator-owner in that niche.
Business and revenue model
| Revenue stream (FY2025, USD K) | FY2025 | % of total | Nature |
|---|---|---|---|
| Time charter revenues | 602,187 | 82.1% | Fixed daily hire on TC contracts (container, PCTC, tankers on TC, bulk) |
| Drilling contract revenues | 96,255 | 13.1% | Day-rate revenue from Linus (ConocoPhillips, Norway) |
| Voyage charter and pool revenues | 14,753 | 2.0% | Spot exposure (Suezmaxes, Kamsarmaxes, pools) |
| Profit sharing revenues | 5,604 | 0.8% | Upside share in charterers' earnings above thresholds |
| Other operating income | 13,291 | 1.8% | Incl. ~$5.0M scrubber fuel-saving payments (Maersk, Eukor) |
| Interest income – sales-type & leaseback assets | 951 | 0.1% | Finance-lease accounting income |
| Total operating revenues | 733,041 | 100% | — |
SFL's revenue model is overwhelmingly contracted charter hire — the economic equivalent of a long-dated, asset-backed rental/subscription model — supplemented by smaller variable streams:
Source: SFL 20-F FY2025, Consolidated Statements of Operations.
In product/service terms: ~0% product sales, ~100% service (chartering/drilling services); within that, ~85% fixed-rate contracted hire, ~13% drilling day rates, ~2–3% market-exposed spot/pool, and <1% profit-share/fuel-savings upside.
Value-chain position
SFL sits upstream of the liner companies, car manufacturers/logistics operators, oil majors and commodity traders who are the operators of global seaborne trade. It provides capital-intensive tonnage so that charterers can keep assets off their balance sheets or manage fleet flexibility. It sits downstream of shipyards (New Times Shipbuilding in China for the 16,800 TEU series; undisclosed yards for PCTCs and VLACs) and of the ship-finance banks and bond markets that fund it.
Customer types and end-markets
Container liner companies: A.P. Møller-Maersk (15 container vessels on long-term TC per FY2025 20-F), MSC (four partly-owned 19,000-class vessels on bareboat), Hapag-Lloyd (six vessels, extended to 2035–36), plus an undisclosed "leading liner company" for the five 16,800 TEU newbuilds.
Automotive / ro-ro logistics: Volkswagen Group (LNG dual-fuel PCTCs and the older SFL Composer/SFL Conductor), K Line (Odin Highway/Thor Highway per LNG Prime), Eukor (scrubber-fitted 4,900 CEU Arabian Sea), and a "major Asia-based car manufacturer" (new PCTC charters, 2029).
Oil & gas majors and traders: ConocoPhillips (Linus, to May 2029), an "investment-grade multinational oil and gas company" in Canada (Hercules, from Q1 2027), a "European oil major" (VLAC charters from 2028), tanker charterers including Fredriksen-affiliated Frontline and others.
Dry bulk operators: historically Golden Ocean (Fredriksen-affiliated) — fleet reduced to two Kamsarmaxes trading spot by end-2025.
End-markets: containerized trade, global automotive trade, crude/product oil transportation, petrochemical gas (ammonia/LPG) transportation, dry bulk, and offshore oil & gas drilling (Norwegian North Sea, Atlantic Canada).
Strategy
Stated strategy (themes from 20-F FY2025, releases and calls)
-
"Maritime infrastructure" positioning — long-term charters to industrial end-users providing earnings visibility and dividend capacity (Q3 2025 release; Q2 2026 call).
-
Fleet renewal and decarbonization — disposal of older, non-strategic assets (≈20 vessels sold in 2025, cutting average fleet age by ~2 years) and reinvestment in LNG dual-fuel tonnage; "commitment to continue expanding our investment focus to assets with a lower carbon footprint" (3-Jul-2024 release). With current orders, SFL will have well over a dozen dual-fuel vessels (11 LNG DF after the 2024 container order, plus four DF PCTCs and two DF VLACs).
-
Upgrade-to-extend — ~$110M invested since 2023 in fuel-efficiency and cargo-intake upgrades, monetized through charter extensions at higher rates (≈$1.2B backlog attributed to these initiatives by Q3 2025).
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Counterparty quality — two-thirds of backlog to investment-grade customers.
-
Capital discipline in dividends — dividend sized below ~50% of operating cash flow; cut in 2025, raised in 2026 as visibility improved.
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Opportunistic spot exposure — retaining selected assets (two Suezmaxes, two Kamsarmaxes) in the spot market to capture upside.
Strategic initiatives — last 24 months
| Date | Initiative | Quantification | Source |
|---|---|---|---|
| Jul-2024 | Five 16,800 TEU LNG DF newbuilds with 10-yr charters | ~$1.0B capex; ~$1.2B backlog | Release 3-Jul-2024 |
| Jul-2024 | Maersk 4 x 8,700 TEU 5-yr extensions | ~$240M backlog | India Seatrade News |
| 2,025 | Fleet optimization: sale of ~20 older vessels; Capesize exit | >$150M net proceeds post-Q2 2025; ~$259M FY2025 sale proceeds | Q2 2025 call; 20-F |
| Q1 2025 | Share buyback | $10M at $7.98 | Q1 2025 release |
| Q4 2025 | Suezmax repositioning: sell 2015-built pair; move 2020-built pair to spot | ~$52M net proceeds; $23M investment; >25% annualized ROE claimed | Q4 2025 release & call |
| Mar-2026 | Hercules re-contracting (Canada) | ~$170M, ≥400 days | Release 6-Mar-2026 |
| Q1 2026 | Rig refinancing | $250M new facilities (incl. $150M Linus TL) | Q1 2026 release |
| Apr-2026 | Sustainability-linked bond tap (2030 USD bond) | $75M | Release 29-Apr-2026 |
| Q2 2026 | PCTC renewal: 3-yr charters for SFL Composer/Conductor; 4 x 7,000 CEU DF newbuilds | $83M + ~$150M backlog; $363M capex | Q2 2026 release |
| Q2–Q3 2026 | ATM and DRIP equity programmes (up to 10M shares / $100M each) | $100M raised (8.8M shares) | Q2 2026 release & call |
| 2,026 | Buyback authorization | Up to $100M, valid to June 2029 | Q2 2026 report |
| Sep-2026 | Hapag-Lloyd 7-yr extension (6 ships) | ~$750M backlog | Release 11-Sep-2026 |
| Oct-2026 | Entry into ammonia/petrochemical gas carriers (2 VLACs) | ~$216M capex; ≥$162M backlog | Release 5-Oct-2026 |
Medium-term targets / guidance
SFL does not publish formal financial guidance or medium-term targets (revenue, EBITDA or leverage targets: not publicly disclosed). Management commentary provides directional markers: dry-dock costs expected below average in H2 2025 (Q2 2025 call); Hercules to start Q1 2027; newbuild capex (~$1.2B at 30-Jun-2026, plus ~$216M VLACs) to be funded primarily by pre- and post-delivery debt; dividend to be supported by backlog (more than $1.3B added in 2026 YTD).
Products & Services
SFL's "products" are chartered assets. The catalog below is organized by asset class. Fleet composition at 31-Dec-2025 per the 20-F (as summarized by Yahoo Finance): 17 tankers, 2 dry bulk carriers, 21 container vessels (wholly owned), 7 car carriers and 2 drilling rigs, plus four partly-owned 19,000-class container vessels. Portfolio at 30-Jun-2026: 61 maritime assets including newbuildings (Q2 2026 call). Owned/leased fleet average age ≈ 9 years at 31-Dec-2025 (20-F).
Container vessels (≈70% of backlog)
| Sub-fleet | Specification | Charterer / contract | Status / pricing model | Source |
|---|---|---|---|---|
| Maersk fleet (15 vessels) | Mix incl. four 8,700 TEU (San Felipe, San Felix, San Fernando + one) and others; 7 scrubber-fitted | Long-term TCs with A.P. Møller-Maersk; four 8,700 TEU extended 5 years to 2029–2030 (~$240M) | Fixed daily hire; scrubber fuel-saving share | 20-F FY2025; India Seatrade News |
| Hapag-Lloyd fleet (6 vessels) | Originally described as 14,000 TEU (2022); now 15,400 TEU — consistent with cargo-intake upgrades (analyst inference) | 5-year TCs from 2023–24, extended 7 years to 2035–2036 (~$750M added, 11-Sep-2026) | Fixed rates "reflecting the current strong container market" | SFL releases 2022 & 11-Sep-2026 |
| MSC partly-owned vessels (4) | ~19,000–19,400 TEU, 2016-built | Long-term bareboat charters to MSC / Conglomerate Shipping until ~2033, purchase obligations | Bareboat hire; accounted as associates | 20-F FY2025; MarineLink |
| Newbuild series (5 vessels) | 16,800 TEU, LNG dual-fuel, latest fuel-efficiency and cargo-intake features; New Times Shipbuilding (China) | ≥10-year TCs to an undisclosed "leading liner company" (market speculation: MSC), +2-yr extension option, purchase options yr 10 & 12 with profit share; ~$1.2B backlog | SFL release 3-Jul-2024; LNG Prime; Hansa |
Car carriers / PCTCs (≈15% of backlog)
| Vessel / group | Specification | Charterer / contract | Notes | Source |
|---|---|---|---|---|
| LNG dual-fuel PCTCs (incl. SFL Emden-type) | Modern LNG DF PCTCs | Long-term charter to Volkswagen Group | Delivered 2023–24 | LNG Prime; Baird Maritime image caption |
| Odin Highway, Thor Highway | LNG DF PCTCs (GSI-built per LNG Prime) | Charters with K Line | Odin Highway delivered Jan-2024 | LNG Prime |
| SFL Composer, SFL Conductor | Older PCTCs | New 3-year TCs back-to-back with current VW charters (~$83M backlog) | Agreed Q2 2026 | Q2 2026 release & call |
| Arabian Sea | 4,900 CEU, scrubber-fitted | Time charter to Eukor Car Carriers | Fuel-saving share | 20-F FY2025 |
| Newbuild series (4 vessels) | 7,000 CEU, LNG dual-fuel | Two on 5-year TCs (+5-yr options) to a "major Asia-based car manufacturer" (~$150M firm backlog); two open | ~$363M total; delivery 2029; yard not disclosed | Q2 2026 release; Shipping Telegraph |
Tankers
| Group | Specification | Employment | Source |
|---|---|---|---|
| Suezmax tankers (2020-built, two) | ~150–160k dwt crude carriers | Spot market since Q4 2025 (after $23M charter settlement/investment); TCE ~$54,000/day Q1 2026 and ~$133,000/day Q2 2026 vs. cash breakeven < $20,000/day | Q4 2025, Q1 & Q2 2026 releases/calls |
| SFL Ottawa, SFL Thelon (2015-built) | Suezmaxes | Sold; delivered Dec-2025 and Feb-2026; ~$52M net proceeds after debt and profit-share | Q4 2025 release |
| LR2 product tankers (three, newbuilds) | ~115,000 dwt | Acquired from Hemen-affiliated sellers for ~$230M with charters attached | Nordnet; Seeking Alpha headline |
| Other crude/product tankers | Balance of the 17 tankers at YE2025 (VLCCs/Suezmaxes/MRs) | Mostly time charters, some with profit share (e.g., Frontline-related legacy) | 20-F FY2025 (aggregate count) |
Gas carriers (new class, 2028)
| Group | Specification | Charterer | Economics | Source |
|---|---|---|---|---|
| Very Large Ammonia Carriers (2) | 93,000 cbm, able to carry a wide range of petrochemical gases; dual-fuel propulsion; latest efficiency/cargo-intake technology | Long-term TCs to a European oil major, options to extend up to 4 years | ~$216M aggregate yard cost; ≥$162M firm backlog; delivery from Q2 2028 | SFL release 5-Oct-2026 |
Dry bulk
| Group | Specification | Employment | Source |
|---|---|---|---|
| Kamsarmax carriers (2) | ~82k dwt | Spot; TCE ~$10,700/day Q1 2026 | Q1 2026 release |
| Former Capesize fleet | 8 Capesizes sold in 2025; seven older dry bulk vessels impaired by ~$34M in Q1 2025 | Exited | Q1 & Q2 2025 releases |
Offshore drilling rigs (≈10% of backlog)
| Rig | Specification | Contract | Source |
|---|---|---|---|
| Linus | 2014-built harsh-environment jack-up | Long-term contract with ConocoPhillips, Norway, to May 2029; refinanced with new $150M term loan Q1 2026; ~$23M Q1 2026 energy revenue mainly from Linus | 20-F FY2025; Q1 2026 release & call |
| Hercules | 2008-built ultra-deepwater harsh-environment semi-submersible; only rig in market with a valid Canadian safety case; previously worked in Norway, Canada and Namibia | Idle/warm-stacked in Norway since Q4 2024; new ~$170M, ≥400-day contract in Canada starting Q1 2027 | SFL release 6-Mar-2026; Q1 2026 call |
Ancillary "services"
Efficiency and cargo-optimization upgrades: (~$110M invested since 2023 per Q4 2025 release) monetized through higher charter rates on extensions.
Scrubber fuel-saving arrangements: (~$5.0M revenue in FY2025).
Profit-sharing: features on certain charters ($5.6M FY2025).
- Pricing: charter rates are not individually disclosed; the 16,800 TEU contracts imply ~$1.2B over 10 years for five ships (≈ $66k/day per vessel gross, analyst derivation).
Financial Narrative
Basis: U.S. GAAP, USD millions, fiscal years ended 31 December. FY2023–FY2025 from SFL 20-F FY2025.
Income statement
Company "Adjusted EBITDA" (which adds back associates' EBITDA and charter hire not recognized as revenue) differs; e.g., 12-month adjusted EBITDA was ~$545M at Q1 2025 (Q1 2025 call). FY2022 depreciation and FY2021 depreciation from TipRanks.
Margins and growth
Revenue CAGR FY2021–FY2025: ≈ 9.3% per annum (513.4 → 733.0). FY2021–FY2024 CAGR: ≈ 20.8%, before the 2025 reversal.
Commentary. Three distinct phases are visible. (1) FY2021–22 expansion: revenue grew 31% in 2022 as SFL bought container vessels and car carriers on long charters and, from September 2022, began booking Linus drilling revenue gross (which inflates revenue and opex relative to lease income, compressing percentage margins — hence the falling operating margin from 47% to 41% despite rising profit). (2) FY2023–24 peak: FY2024 revenue reached a record $904.4M with both rigs working and new PCTCs delivered; operating income peaked at $306.7M. Net income was weighed down by a step-up in interest cost (non-operating expense rose from ~$76M in 2022 to $156–168M in 2023–24 per StockAnalysis) as SOFR rose and debt increased. (3) FY2025 trough: Hercules idleness ($60k/day carrying cost and ~$140M less drilling revenue), $34.1M of dry bulk impairments, a $7.2M net loss on sales/charter settlements (including a $23M Suezmax charter settlement expensed in Q4) and a smaller fleet produced a $26.4M net loss — the first annual loss since 2020. Underlying cash generation remained positive (OCF $267M). Inflection: H1 2026 net income of $60M (Q1 $26M + Q2 $34M) and Q2 2026 adjusted EBITDA of $130M (+20% QoQ) show recovery, driven by Suezmax spot strength and asset-sale gains, ahead of Hercules's return to work in Q1 2027.
Balance sheet
Sources: StockAnalysis balance sheet (compiled from 20-F filings); 20-F FY2025 cash flow statement (cash balances); Q1 2025 6-K (31-Dec-2024 current liabilities); Simply Wall St (31-Dec-2025 current liabilities). 20-F FY2025 risk factors state total outstanding indebtedness of $2.6B at 31-Dec-2025 plus $0.2B finance lease obligations in associated companies.
Commentary. SFL is structurally leveraged (book equity ratio ~26–29%; 27% at Q1 2026, 29% at Q2 2026 per calls). Total debt has hovered at $2.4–2.8B for five years; FY2024's peak ($2.84B) reflects newbuild/acquisition funding, and the 2025 reduction ($2.57B) reflects deleveraging from ~$259M of asset-sale proceeds. Negative working capital is chronic because balloon maturities sit in current liabilities; it is managed through rolling refinancing (e.g., $250M Linus/Hercules facilities Q1 2026; $75M bond tap April 2026; redemption of $150M bond at maturity May 2026). Equity fell ~$167M in 2025 (net loss plus $125M dividends exceeding earnings, partly offset by share issuance). At 31-Mar-2026: total assets $3,555M, total debt $2,502M, equity $964.8M, cash $127.6M. At 30-Jun-2026: cash $113M, undrawn facilities $160M, total liquidity ~$273M; remaining newbuild capex ~$1.2B (before the ~$216M VLAC order).
Cash flow
Source: SFL 20-F FY2025 consolidated statements of cash flows; buyback from Q1 2025 release. Derived capex includes all other investing items (e.g., investments in associates) and is therefore approximate.
Commentary. OCF fell 28% in 2025 with Hercules idle and heavy drydocking in H1 2025 (six vessels in dock in Q1 2025). FY2024's large negative FCF reflects fleet investment (PCTC deliveries, LR2 acquisitions, newbuild instalments) funded by $1.4B of new debt. FY2025's positive FCF is flattered by minimal capex during a portfolio-harvesting year. Dividends paid ($125M) consumed 47% of OCF in 2025 — management noted in the Q4 2025 call that the dividend remains below 50% of operating cash flow.
Ratios
Analyst calculations from tables above. FY2021 ROE/ROA use FY2020 equity of $795.7M and assets of $3,093M (Kalkine). Interest coverage: interest expense not separately verified; Simply Wall St cites EBIT/interest coverage of ~1.1x on FY2025 figures. Cash conversion cycle: not meaningful for a charter-hire business (aggregator values of 16–52 days reflect receivables only).
Ratio commentary. Returns are thin relative to the cost of capital in a weak year and highly sensitive to a handful of assets (one rig ≈ $35M quarterly EBITDA swing). Leverage metrics around 5–6x net debt/EBITDA are typical for long-charter lessors but leave limited room for error; the backlog (two-thirds investment-grade) is the principal credit mitigant.
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View Subscription PlansFinancial Detail
Revenue by Segment and Revenue by Segment (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Shipping revenue (USD Mn) — total less drilling | 605.4 | 667.8 | 636.8 |
Energy / drilling contract revenue (USD Mn) | 146.9 | 236.7 | 96.3 |
Total operating revenues (USD Mn) | 752.3 | 904.4 | 733.0 |
Shipping share of total (%) | 80.5 | 73.8 | 86.9 |
Energy share of total (%) | 19.5 | 26.2 | 13.1 |
Shipping YoY growth (%) | — | 10.3 | -4.6 |
Energy YoY growth (%) | — | 61.1 | -59.3 |
Revenue by Segment and Segment Assets & Liabilities
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Time charter revenues (USD Mn) | 544.4 | 619.4 | 602.2 |
Voyage charter and pool revenues (USD Mn) | 33.6 | 18.9 | 14.8 |
Drilling contract revenues (USD Mn) | 146.9 | 236.7 | 96.3 |
Interest income sales-type and leaseback assets (USD Mn) | 6.2 | 2.4 | 1.0 |
Profit sharing revenues (USD Mn) | 13.2 | 16.7 | 5.6 |
Other operating income (USD Mn) | 8.0 | 10.3 | 13.3 |
Results by Segment and Revenue by Segment (%)
| Metric | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|
Total operating revenues (USD Mn) | 178 | 176 | 174.5 | 201 |
Shipping share of charter hire (%) | 86 | 87 | 87 | — |
Energy share of charter hire (%) | 14 | 13 | 13 | — |
Adjusted EBITDA incl. associates (USD Mn) | 113 | 109 | 108 | 130 |
Net income (USD Mn) | 8.6 | -4.7 | 26 | 34 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total operating revenues (USD Mn) | 513.4 | 670.4 | 752.3 | 904.4 | 733.0 |
Revenue growth YoY (%) | 9.0 | 30.6 | 12.2 | 20.2 | -19.0 |
Vessel and rig operating expenses (USD Mn) | — | — | 293.8 | 343.3 | 301.8 |
Revenue less vessel and rig opex (USD Mn) — gross profit proxy | — | — | 458.5 | 561.1 | 431.3 |
Depreciation (USD Mn) | 138.3 | 187.8 | 214.1 | 239.2 | 235.0 |
Vessel impairment charge (USD Mn) | — | — | 7.4 | 0 | 34.1 |
Net operating income (USD Mn) | 242.8 | 275.5 | 240.2 | 306.7 | 136.7 |
EBITDA — operating income plus depreciation plus impairment (USD Mn) | 381.1 | 463.3 | 461.7 | 545.9 | 405.8 |
Income before taxes (USD Mn) | 164.3 | 202.8 | 87.3 | 141.3 | -24.5 |
Net income attributable (USD Mn) | 164.3 | 202.8 | 83.9 | 130.7 | -26.4 |
EPS basic (USD) | 1.35 | 1.60 | 0.66 | 1.01 | -0.20 |
EPS diluted (USD) | — | — | 0.66 | 1.01 | -0.20 |
Dividends per share declared/paid (USD) | 0.63 | 0.88 | 0.97 | 1.07 | 0.94 |
Weighted avg basic shares (M) | 122.1 | 126.8 | 126.3 | 129.4 | 133.0 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin proxy — revenue less opex over revenue (%) | — | — | 60.9 | 62.0 | 58.8 |
Operating margin (%) | 47.3 | 41.1 | 31.9 | 33.9 | 18.6 |
EBITDA margin (%) | 74.2 | 69.1 | 61.4 | 60.4 | 55.4 |
Net margin (%) | 32.0 | 30.3 | 11.2 | 14.4 | -3.6 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 3,459 | 3,861 | 3,731 | 4,108 | 3,638 |
Cash and cash equivalents (USD Mn) | 145.6 | 188.4 | 165.5 | 134.6 | 150.8 |
Current portion of long-term debt (USD Mn) | 302.8 | 921.3 | 432.9 | 689.1 | 605.9 |
Long-term debt excl. current portion (USD Mn) | 1,586 | 1,280 | 1,714 | 2,150 | 1,961 |
Long-term lease liabilities separately reported (USD Mn) | 473 | 419 | — | — | — |
Total debt incl. leases (USD Mn) | 2,413 | 2,674 | 2,566 | 2,839 | 2,566 |
Net debt — total debt less cash and ST investments (USD Mn) | 2,247 | 2,478 | 2,395 | 2,701 | 2,412 |
Stockholders equity (USD Mn) | 982.3 | 1,091.2 | 1,039.0 | 1,128.0 | 960.9 |
Goodwill and intangibles (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Total current assets (USD Mn) | 250.3 | 297.0 | 298.1 | 316.0 | 259.2 |
Total current liabilities (USD Mn) | — | — | — | 827.9 | 710.3 |
Working capital (USD Mn) | — | — | — | -511.9 | -451.1 |
Cash Flow
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Net cash from operating activities (USD Mn) | 343.1 | 369.9 | 267.1 |
Net cash from investing activities (USD Mn) | -103.9 | -617.5 | 188.1 |
Proceeds from sale of assets (USD Mn) | 156.2 | 22.7 | 258.6 |
Derived capex and investments — investing CF less sale proceeds (USD Mn) | 260.1 | 640.2 | 70.5 |
Free cash flow — OCF less derived capex (USD Mn) | 83.0 | -270.3 | 196.6 |
Cash dividends paid (USD Mn) | 123.0 | 138.5 | 125.1 |
Share buybacks (USD Mn) | — | — | 10.0 |
Debt issued (USD Mn) | 944.6 | 1,398.4 | 244.0 |
Debt repaid (USD Mn) | 781.1 | 556.7 | 527.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE — net income over average equity (%) | 18.5 | 19.6 | 7.9 | 12.1 | -2.5 |
ROA — net income over average assets (%) | 5.0 | 5.5 | 2.2 | 3.3 | -0.7 |
Debt to equity (x) | 2.46 | 2.45 | 2.47 | 2.52 | 2.67 |
Net debt to EBITDA (x) | 5.9 | 5.3 | 5.2 | 4.9 | 5.9 |
Asset turnover — revenue over average assets (x) | 0.16 | 0.18 | 0.20 | 0.23 | 0.19 |
Current ratio (x) | — | — | — | 0.38 | 0.36 |
Revenue by Region
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Drilling revenue — Norway and Canada combined (USD Mn) | 146.9 | 236.7 | 96.3 |
International shipping revenue — not allocated by region (USD Mn) | 605.4 | 667.8 | 636.8 |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Last close (8-Oct-2026) | $13.56 | Market quote |
52-week range | $6.73 – $13.98 | Market quote; Yahoo Finance |
1-year total change | +83.7% | Market quote (price performance) |
Year-to-date | +71.9% | Market quote |
3-year price change (Oct-2023 $10.86 → $13.56) | ≈ +25% (ex-dividends) | Digrin price history (analyst calc) |
5-year price change (Oct-2021 $7.91 → $13.56) | ≈ +71% (ex-dividends) | Digrin price history (analyst calc) |
Beta (5Y monthly) | 0.44 | Yahoo Finance |
Metric | FY2021 | FY2022 |
Dividends per share (USD) | 0.63 | 0.88 |
Valuation Multiples
| Multiple | SFL | Basis |
|---|---|---|
Market capitalization | ~$1.9B | Yahoo Finance intraday |
Enterprise value | ~$4.3B | Market cap + net debt ~$2.4B (YE2025/Q1 2026) |
P/E (TTM) | ~28x | TTM EPS ~$0.48 (Q3'25 0.07, Q4'25 −0.04, Q1'26 0.20, Q2'26 0.25); swingtradebot 27.8x |
EV/EBITDA (TTM, company adjusted EBITDA) | ~9.3x | TTM adj. EBITDA ~$460M (113+109+108+130) |
EV/Sales (TTM) | ~5.9x | TTM revenue ~$730M |
P/B | ~1.8x | swingtradebot |
Dividend yield (forward) | ~6.5% | $0.88 annualized / ~$13.5 |
Capital Instruments
| Instrument | Terms | Status | Source |
|---|---|---|---|
Senior unsecured sustainability-linked USD bond due 2030 | Tapped $75M (Apr-2026; ~$78M proceeds per Q2 summary) | Outstanding | Release 29-Apr-2026; FilingReader |
NOK 750M senior unsecured bond | NIBOR 3M + 3.25%, matures 25-Sep-2029 | Outstanding | TipRanks announcement |
$150M bond due May 2026 | — | Redeemed at maturity | Q2 2026 call |
Rig facilities (Linus $150M TL + Hercules) | $250M total, new in Q1 2026 | Outstanding | Q1 2026 release |
Vessel-secured bank debt and lease financings | Multiple facilities | Outstanding | 20-F |
Current portion of long-term debt | $723M at 31-Mar-2026; $606M at 31-Dec-2025 | Rolling refinancing | StockAnalysis |
Analyst Conclusions
Management guidance
No numerical guidance. Directional: backlog-supported dividend capacity; Hercules contract from Q1 2027; ~$1.2B newbuild capex (plus ~$216M VLACs) to be debt-funded; continued fleet renewal.
Consensus growth expectations
Implied by results: H1 2026 net income of $60M vs FY2025 loss of $26M; Q3 2026 results expected ~10-Nov-2026.
Bull case
-
Backlog-driven re-rating continues: ~$4.6–4.8B backlog with >6-year duration; the 7-year Hapag-Lloyd deal shows pricing power, and 2028–29 deliveries add contracted EBITDA.
-
Energy normalization: Hercules (~$170M) plus Linus to 2029 restores ~$35M quarterly EBITDA from 2027, supporting further dividend increases.
-
Spot optionality: Suezmaxes earning >$100k/day above breakeven amid Middle East disruption provide free upside.
Bear case
-
Leverage and funding: D/E ~2.6x, negative working capital and ~$1.4B newbuild capex leave SFL exposed to refinancing and rate shocks; equity issuance (8.8M shares in 2026) dilutes.
-
Valuation already reflects recovery: ~28x TTM P/E, ~9x EV/EBITDA and price near consensus targets after an 84% one-year rally.
-
Cycle risk: container orderbook deliveries in 2027–29, tariff/port-fee policy, and rig market softness could pressure re-chartering of older assets.
Catalysts and monitorables (next 12 months)
-
Q3 2026 results (~10-Nov-2026): Suezmax TCE, dividend decision, updated backlog.
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Hercules mobilization to Canada and contract start (Q1 2027).
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Financing of newbuild programme (pre-/post-delivery facilities).
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U.S.–China port-fee suspension expiry (~Nov-2026).
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Further charter extensions on Maersk/container fleet; potential asset sales.
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Use of the $100M buyback vs ATM issuance; preference-share authorization usage.
Analyst verdict
SFL enters late 2026 in materially better shape than a year earlier. The 2025 trough — an idle Hercules, dry bulk impairments, a 26% dividend cut and a $26.4M net loss — was largely self-correcting: management harvested ~20 older vessels, recycled capital into dual-fuel tonnage with long charters, and secured a $170M contract for Hercules. Since March 2026, SFL has added more than $1.3B of backlog, culminating in the $750M Hapag-Lloyd extension and the first VLAC order, lifting contracted revenue to roughly $4.6–4.8B, two-thirds with investment-grade counterparties. Q2 2026 adjusted EBITDA of $130M was the best in over a year, and the dividend has turned upward again.
The market has noticed. At ~$13.5 the shares have risen ~84% in twelve months, trade at ~9x EV/EBITDA and ~1.8x book, and sit near the consensus target band of $12–14. The investment case from here is therefore less about recovery and more about execution: delivering eleven newbuildings on budget, financing ~$1.4B of capex without excessive dilution, getting Hercules to work on time, and continuing to roll the Maersk and legacy tanker charters at accretive rates.
Balance-sheet risk is the key constraint. Debt/equity of ~2.6x, negative working capital and reliance on rolling refinancing mean SFL remains a levered play on counterparty quality and credit-market access. The 6.5% forward yield is well covered by backlog but not by GAAP earnings until the 2027–29 contributions arrive.
Verdict: Hold / Neutral-positive. SFL is a high-quality, diversified income vehicle whose visibility has improved sharply, but much of the near-term good news — Hercules re-employment, Hapag extension, dividend restoration — is now in the price. Income investors can hold for the dividend and backlog growth; new money would be better deployed on pullbacks or after evidence of newbuild financing on attractive terms and a further dividend step-up.
End of dossier. All figures in USD unless noted. FY = calendar year ending 31 December.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Background | Source |
|---|---|---|---|---|
Ole Bjarte Hjertaker | CEO, SFL Management AS; Director of SFL | CFO 2006–2009; CEO since 2009; Director since Oct-2019 | Formerly DNB Markets Corporate Finance (shipping & offshore); MSc, Norwegian School of Economics (NHH); Director of Frontline (since 2022); Chairman of NorAm Drilling (per 2022 bio) | Frontline release 2-May-2022; ADIPEC bio |
Aksel C. Olesen | Chief Financial Officer | — | — | SFL releases |
Trym Otto Sjølie | Chief Operating Officer | — | — | Q4 2025/Q2 2026 call participants |
André Reppen | Chief Treasurer & Senior Vice President | — | — | SFL releases |
Espen Nilsen Gjøsund | Vice President, Investor Relations (also described as VP Finance & IR) | — | — | Q2 2026 call; Sept-2026 release |
James Ayers | Company contact person, Bermuda | — | — | 20-F FY2025 cover |
Board of Directors
| Director | Role / notes | Source |
|---|---|---|
Kathrine Fredriksen | Director; daughter of John Fredriksen; Hemen-related (non-independent by affiliation) | 2025 & 2026 AGM |
Keesjan Cordia | Director | 2025 & 2026 AGM |
Ole B. Hjertaker | Director and CEO (executive) | 2025 & 2026 AGM |
Will Homan-Russell | Director | 2025 & 2026 AGM |
Jan Erik Klepsland | Director — new nominee at 2026 AGM (re-election item 9 on proxy form) | 2026 AGM proxy form |
Major Shareholders
| Holder | Stake | Source |
|---|---|---|
Hemen Holding Ltd. (Fredriksen family trusts) | c. | Nordnet company description; 20-F names Hemen as largest shareholder |
Long-term U.S. institutional investors | c. 40% of non-Hemen holders (secondary characterization) | Nordnet |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Positioning vs SFL |
|---|---|---|
Container tonnage provision | Costamare (NYSE: CMRE) | Pure-play container lessor post dry-bulk spin-off; larger container fleet; FY2025 voyage revenue $846.7M, NI $371M, backlog $3.4B |
Container tonnage provision | Danaos (NYSE: DAC) | — |
Container tonnage provision | Global Ship Lease (NYSE: GSL) | — |
Container tonnage provision | Seaspan (private, Atlas/Poseidon) | Largest independent boxship lessor; private |
Container tonnage provision | Euroseas, Navios Maritime Partners (diversified) | Smaller/diversified competitors |
Car carriers | Höegh Autoliners, Wallenius Wilhelmsen | Operator-owners (compete for OEM contracts and tonnage) |
Car carriers (tonnage providers) | Zodiac, Ray Car Carriers, Chinese leasing houses | Competing lessors for PCTC charters |
Tankers | Frontline, DHT, Okeanis, International Seaways | Spot-oriented owners; SFL competes mainly for TC business |
Ship leasing (all classes) | Chinese bank-leasing houses (ICBC Leasing, BoComm Leasing, CMB Financial Leasing) | Lower cost of capital; major competitive pressure in sale-leaseback |
Offshore drilling | Transocean, Seadrill, Odfjell Drilling, Noble, Valaris | Rig operators competing for harsh-environment contracts |
Peer Comparison FY2025
| Company | FY2025 revenue (USD Mn) | Revenue growth (%) | Net income (USD Mn) | Net margin (%) | Contracted backlog (USD Bn) |
|---|---|---|---|---|---|
SFL Corporation | 733.0 | -19.0 | -26.4 | -3.6 | ~4.6 (Sep-2026) |
Costamare (continuing ops) | 846.7 | -2.1 | 371.0 | 43.8 | 3.4 |
