SFL (NYSE:SFL) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

SFL (NYSE:SFL) released its earnings results on Tuesday. The shipping company reported $0.20 EPS for the quarter, topping 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 firm had revenue of $174.48 million for the quarter, compared to the consensus estimate of $169.21 million. During the same quarter in the previous year, the firm earned ($0.24) earnings per share. The company’s quarterly revenue was down 6.8% compared to the same quarter last year.

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 Price Performance

SFL stock traded up $0.56 during mid-day trading on Tuesday, reaching $12.56. 1,080,763 shares of the company’s stock traded hands, compared to its average volume of 1,474,657. The company has a market cap of $1.82 billion, a price-to-earnings ratio of -62.73 and a beta of 0.42. The stock has a 50 day moving average of $10.90 and a two-hundred day moving average of $9.28. The company has a quick ratio of 0.35, a current ratio of 0.36 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.

SFL Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 30th. Investors of record on Thursday, March 12th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $0.80 dividend on an annualized basis and a yield of 6.4%. SFL’s dividend payout ratio is presently -400.00%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Weiss Ratings reissued a “hold (c-)” rating on shares of SFL in a report on Friday, May 1st. BTIG Research upped their price target on shares of SFL from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, February 11th. Finally, Wall Street Zen raised shares of SFL from a “sell” rating to a “hold” rating in a research note on Sunday, May 3rd. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, SFL presently has an average rating of “Moderate Buy” and a consensus target price of $12.00.

Institutional Investors Weigh In On SFL

Hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC raised its stake in SFL by 789.3% during the second quarter. EverSource Wealth Advisors LLC now owns 3,317 shares of the shipping company’s stock valued at $28,000 after purchasing an additional 2,944 shares in the last quarter. Triumph Capital Management purchased a new stake in shares of SFL in the third quarter valued at $32,000. Kemnay Advisory Services Inc. purchased a new stake in shares of SFL in the fourth quarter valued at $47,000. Quadrant Capital Group LLC raised its stake in shares of SFL by 122.3% in the fourth quarter. Quadrant Capital Group LLC now owns 6,139 shares of the shipping company’s stock valued at $48,000 after acquiring an additional 3,377 shares during the period. Finally, Kestra Advisory Services LLC purchased a new stake in shares of SFL in the fourth quarter valued at $66,000. Hedge funds and other institutional investors own 28.59% of the company’s stock.

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.