SFL - SFL GAAP EPS of $0.05 misses by $0.12 revenue of $173.27M beats by $5.19M

2023-05-15 09:15:43 ET

• SFL press release ( NYSE: SFL ): Q1 GAAP EPS of $0.05 misses by $0.12 .
• Revenue of $173.27M (-12.4% Q/Q) beats by $5.19M .
• Received charter hire1 of $182.4 million in the quarter, including $4.9 million of profit share.
• Adjusted EBITDA of $102.6 million from consolidated subsidiaries, plus an additional $7.7 million adjusted EBITDA  from 49.9% owned associated companies.
• Outlook and strategy : "SFL’s diversified and extensive portfolio of charters with top tier counterparties provides the Company with a strong platform, and the recent acquisitions and financing transactions are illustrative of SFL’s position in the market. Over the years we have moved away from primarily financing maritime assets for intermediaries to providing long term time-charters directly to end-users. This has created multiple repeat business opportunities, such as the most recent transaction with Volkswagen.
• The market for ultra deepwater drilling rigs is firming up rapidly, and there are very few rigs similar to Hercules with both harsh environment, fully winterized and ultra deepwater capabilities. We are investing significantly in the rig currently, but cash flow from Q3 will be substantial, and market prospects from medio 2024 when the rig will be available for new employment look very promising.
• We remain committed to our strategy of continue acquiring attractive assets with long term charters to reputable operators in the maritime markets. The Company’s diversified and extensive charter portfolio with approximately six years weighted average charter term provides the Company with significant visibility into future cash flows. Additionally, several of our charter contracts are structured with optionality features which may provide further upside for us in strong market conditions."

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