SFL Corporation Ltd. Q2 2026 Preliminary Results Summary
Business Context and Reporting Period
This Form 6-K filing, dated August 26, 2026, reports preliminary financial results for SFL Corporation Ltd. for the quarter ended June 30, 2026. SFL is a global shipping and energy company operating container vessels, car carriers, tankers, bulkers, and drilling rigs. The company operates under U.S. GAAP and is a foreign private issuer.
Key Financial Metrics
- Revenue: Total operating revenues were $201 million ($200.8 million).
- Profitability: Reported net income was $34 million ($33.8 million), or $0.25 per share. Adjusted EBITDA was $130 million ($122.2 million from operations plus $7.8 million from associates).
- Cash Flow: Net cash provided by operating activities was $88 million.
- Liquidity: Cash and cash equivalents totaled $113 million. Total available liquidity, including $160 million in undrawn credit lines, was approximately $273 million.
- Debt: The company redeemed $150 million in senior unsecured bonds due 2026 and raised $78 million via a tap issue of 2030 bonds (total outstanding $225 million).
- Dividend: A quarterly cash dividend of $0.22 per share was declared, marking the 90th consecutive quarterly dividend.
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased from $174.5 million in Q1 2026 to $200.8 million in Q2 2026.
- Net Income: Net income rose from $26.1 million in Q1 2026 to $33.8 million in Q2 2026.
- Operating Expenses: Total operating expenses increased to $135.5 million from $129.6 million in the prior quarter, driven by higher vessel operating expenses ($73.8 million vs. $67.6 million).
- Segment Performance: The Shipping segment generated $80.8 million in operating income, while the Energy segment reported an operating loss of $15.5 million.
- Spot Market: Strong contribution from two Suezmax tankers in the spot market, achieving an average daily TCE of approximately $133,000.
Outlook, Management Commentary, and Risks
- Backlog: Fixed rate charter backlog stands at approximately $3.8 billion with a weighted remaining term of 6.2 years. Approximately 65% of this backlog is with investment-grade customers.
- New Charters: Two PCTC vessels (SFL Composer and SFL Conductor) were fixed on three-year time charters, adding $83 million to the backlog. Four new LNG Dual-Fuel PCTC newbuilds were ordered, with two fixed on five-year charters, adding $150 million to the backlog.
- Capital Markets: The company raised approximately $100 million in net proceeds through its dividend reinvestment and at-the-market (ATM) programs, issuing 8.8 million new shares. No further share issuance is planned in the near term.
- Capital Expenditure: Remaining commitments for nine newbuildings total approximately $1.2 billion, expected to be financed by credit facilities.
- Risks: Forward-looking statements are subject to risks including global economic strength, inflation, interest rates, cyclical volatility in shipping rates, climate change transition impacts on oil demand, geopolitical instability, and potential disruptions to shipping routes.
Investor Verification Checklist
- Verify the sustainability of the $133,000 daily TCE for Suezmax tankers in the spot market.
- Confirm the credit quality and performance of the new charterers for the PCTC vessels.
- Monitor the execution of the $1.2 billion capital expenditure plan for newbuildings and associated financing.
- Assess the impact of the Energy segment's operating loss on overall profitability trends.
- Review the utilization of the $100 million share repurchase authorization authorized by the Board.