Preliminary Q1 2020 results and quarterly cash dividend of $0.25 per share
Hamilton, Bermuda, May 20, 2020. SFL Corporation Ltd. (“SFL” or the “Company”) today announced its preliminary financial results for the quarter ended March 31, 2020.Highlights65^th consecutive quarterly dividend declared, $0.25 per shareOperating revenue of $122 million, and net loss of $87 million in the first quarter, including approximately $114 million in non-cash negative adjustmentsReceived charter hire¹ of approximately $161 million in the quarter from the Company’s vessels and rigs, including $6.4 million of profit shareAdjusted EBITDA² of $94 million from consolidated subsidiaries in addition to $26 million from wholly-owned non-consolidated subsidiariesIncreased the fixed rate charter backlog by approximately $230 million, including charter extensions for ten container vessels and a vessel acquisitionAcquisition of a 2020-built scrubber fitted VLCC for $65 million with a seven year charter to Landbridge Group and underlying three year sub-charter to an oil major
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:“During the first quarter SFL did not experience any material business interruptions resulting from the Covid-19 pandemic. We have maintained a continuous focus on operational safety with a significant number of proactive measures to ensure safety for crew on board our vessels as well as for onshore employees.Notwithstanding the impacts of Covid-19 on global trade, all our counterparties are current on charter hire payments, with good visibility for the second quarter. We will of course continue to closely monitor developments in our customers’ end-markets in order to be able to react quickly to any potential business disruptions. At the same time we look for new business opportunities, as illustrated by the acquisition announced earlier today.In light of the unprecedented market volatility caused by the Covid-19 pandemic, the Board has therefore decided to adjust the quarterly dividend, reflecting the Company’s conservative profile and our commitment to create long term shareholder value.”
Quarterly DividendThe Board of Directors has declared a quarterly cash dividend of $0.25 per share. The dividend will be paid on or around June 30, to shareholders on record as of June 18, and the ex-dividend date on the New York Stock Exchange will be June 17, 2020.May 20, 2020The Board of Directors
SFL Corporation Ltd.
Hamilton, BermudaThe full report can be found in the link below and at the Company’s website www.sflcorp.com.Questions can be directed to SFL Management AS:Investor and Analyst ContactAksel C. Olesen, Chief Financial Officer: +47 23114036André Reppen, Senior Vice President and Chief Treasurer: +47 23114055Media ContactOle B. Hjertaker, Chief Executive Officer: +47 23114011About SFLSFL Corporation Ltd. (NYSE: SFL) has a unique track record in the maritime industry, paying dividends every quarter since its listing on the New York Stock Exchange in 2004. The Company’s fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore assets, and SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found at the Company’s website www.sflcorp.com.Forward Looking StatementsThis press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand resulting from changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.1 Charter hire represents the amounts billable in the period by the Company and its 100% owned associates for chartering its vessels. This is mainly the contracted daily rate multiplied by the number of chargeable days plus any additional billable income including profit share. Long term charter hire relates to contracts undertaken for a period greater than one year. Short term charter hire relates to contracts undertaken for a period less than one year, including voyage charters.
2 ‘Adjusted EBITDA’ is a non-GAAP measure. It represents cash receipts from operating activities before net interest and capital payments. AttachmentSFL – First Quarter 2020 Results
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