- SFL has generated poor long-term returns, and I believe reactive, rather than proactive, fleet management decisions are at least partly responsible.
- Exposure to the Seadrill bankruptcy looks manageable, but the bankruptcy court still needs to rule on a revised charter agreement that will cover debt service on SFL's rigs.
- SFL's fleet and charter backlog is heavily skewed toward containerships, a good place to be now, and I expect management may be looking for opportunities to add more chartered assets.
- It's not hard to get to a double-digit fair value on cash flow, but SFL management has some work to do to rebuild investor confidence after a run of lower payouts and poor share price performance.
For further details see:
SFL Still Generating Free Cash Flow, But Management Needs To Rebuild Investor Confidence