SFL (NYSE:SFL – Get Free Report) released its quarterly earnings data on Tuesday. The shipping company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.02 by $0.18, FiscalAI reports. SFL had a negative net margin of 3.61% and a negative return on equity of 0.30%. The business had revenue of $174.48 million during the quarter, compared to the consensus estimate of $169.21 million. During the same quarter in the prior year, the firm earned ($0.24) EPS. The business’s revenue was down 6.8% on a year-over-year basis.
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 Trading Up 5.4%
Shares of NYSE:SFL traded up $0.65 during trading on Tuesday, reaching $12.65. The company’s stock had a trading volume of 1,281,814 shares, compared to its average volume of 1,476,692. The company has a current ratio of 0.36, a quick ratio of 0.35 and a debt-to-equity ratio of 2.04. SFL has a 12 month low of $6.73 and a 12 month high of $12.72. The firm’s 50 day simple moving average is $10.90 and its two-hundred day simple moving average is $9.28. The stock has a market capitalization of $1.83 billion, a PE ratio of -63.28 and a beta of 0.42.
SFL Announces Dividend
Institutional Trading of SFL
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC purchased a new stake in SFL in the 4th quarter worth about $121,000. Mercer Global Advisors Inc. ADV purchased a new stake in SFL in the 4th quarter worth about $144,000. Empowered Funds LLC raised its position in SFL by 15.1% in the 4th quarter. Empowered Funds LLC now owns 660,013 shares of the shipping company’s stock worth $5,155,000 after purchasing an additional 86,339 shares during the period. Voloridge Investment Management LLC raised its position in SFL by 25.0% in the 4th quarter. Voloridge Investment Management LLC now owns 295,668 shares of the shipping company’s stock worth $2,309,000 after purchasing an additional 59,141 shares during the period. Finally, Man Group plc purchased a new stake in SFL in the 4th quarter worth about $1,024,000. 28.59% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
SFL has been the subject of several research reports. Weiss Ratings reissued a “hold (c-)” rating on shares of SFL in a report on Friday, May 1st. BTIG Research increased their price objective on shares of SFL from $12.00 to $14.00 and gave the company a “buy” rating in a report on Tuesday. Finally, Wall Street Zen raised shares of SFL from a “sell” rating to a “hold” rating in a report on Sunday, May 3rd. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $14.00.
Get Our Latest Stock Report on SFL
More SFL News
Here are the key news stories impacting SFL this week:
- Positive Sentiment: SFL reported Q1 adjusted earnings of $0.20 per share, far above analysts’ estimate of $0.02, signaling a meaningful earnings beat. Article Title
- Positive Sentiment: The company increased its quarterly cash dividend to $0.22 per share, its 89th straight quarterly payout, which can support investor confidence in cash generation and shareholder returns. Article Title
- Positive Sentiment: Revenue of $174.5 million also came in above expectations, helped by strong performance in the shipping segment and two Suezmax tankers in the spot market. Article Title
- Positive Sentiment: SFL also secured a $170 million drilling contract for the Hercules rig and refinanced two rigs with $250 million in new credit facilities, which improves visibility and liquidity. Article Title
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.
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