SFL Posts Steady Q3, Invests in Fleet Optimization

• SFL posts Q3 2025 revenue of $178 million and net income of $8.6 million; declares 87th consecutive quarterly dividend of $0.20 per share.
• Contracted charter backlog reaches $4 billion with a weighted average term of 6.5 years, two-thirds backed by investment-grade clients.
• Fleet optimization and $100 million in vessel efficiency and LNG dual-fuel investments underscore SFL’s long-term sustainability strategy.

SFL Corporation Ltd. reported third-quarter 2025 operating revenues of $178 million and net income of $8.6 million, as the diversified shipowner and leasing company continues to balance its shipping and offshore energy exposure while optimizing its fleet and investing in sustainability.

The company declared its 87th consecutive quarterly dividend—$0.20 per share—underscoring consistent shareholder returns despite a moderating market. Adjusted EBITDA for the quarter reached $113 million, including $8 million from associated companies.

SFL’s fleet generated $179 million in gross charter hire during the quarter, with nearly 86% derived from shipping and 14% from energy. The company’s contracted fixed-rate charter backlog stood at roughly $4 billion, with a weighted average charter term of 6.5 years. Two-thirds of that backlog is with investment-grade counterparties, demonstrating stable long-term income visibility.

The company continued its strategy of “fleet optimization,” selling older dry bulk and container vessels while investing in upgrades and efficiency improvements across modern tonnage. Since 2023, SFL has invested nearly $100 million in vessel retrofit projects and LNG dual-fuel capable newbuilds.

SFL’s energy portfolio includes the jack-up drilling rig Linus, chartered to ConocoPhillips in Norway through May 2029, and the ultra-deepwater rig Hercules, currently warm-stacked awaiting new contract opportunities.

The balance sheet remains robust, with $278 million in cash and $44 million in undrawn credit lines as of September 30, 2025. Capital commitments include five 16,800 TEU container vessels under construction for 2028 delivery, backed by ten-year charters, and approximately $28 million in ongoing vessel upgrades.

SFL also maintains share repurchase and equity issuance programs, with roughly $80 million remaining under its $100 million buyback authorization valid through June 2026.

While acknowledging macroeconomic uncertainty and shifting energy markets, SFL projects steady performance supported by long-term charters, disciplined capital management, and continued investment in cleaner, more efficient assets.