SFL (NYSE:SFL) Releases Earnings Results

by · The Cerbat Gem

SFL (NYSE:SFL – Get Free Report) issued its earnings results on Wednesday. The shipping company reported ($0.04) earnings per share (EPS) for the quarter, Briefing.com reports. SFL had a positive return on equity of 3.05% and a negative net margin of 0.20%.The company’s quarterly revenue was down 23.1% on a year-over-year basis. During the same period last year, the firm earned $0.15 earnings per share.

Here are the key takeaways from SFL’s conference call:

  • Dividend declared of $0.20 per share (88th consecutive quarter), implying ~9% yield and part of >$2.9 billion returned to shareholders historically.
  • Q4 revenues of $176 million and an adjusted EBITDA-equivalent cash flow of $109 million (LTM EBITDA ~$450 million), supported by very high fleet utilization (~98.6%) and targeted efficiency/LNG upgrades.
  • Suezmax transactions generated strong cash and returns — two 2015 vessels sold at about $57m each (recorded ~ $11.3m book gain and ~$26m net cash effect) and remaining 2020-built Suezmaxes trading in a stronger spot market with broker valuations >$80m.
  • Reported a GAAP net loss of ~$4.7 million for the quarter driven by a $23 million settlement expense related to two Suezmax charter releases, highlighting potential P&L volatility from non‑recurring items and spot trading accounting rules.
  • The offshore rig Hercules remains warm‑stacked/idle since Nov 2024, removing a formerly significant cash contributor (rig debt was repaid on the balance sheet and a ~$100 million refinancing is expected subject to customer/closing conditions).

SFL Price Performance

Shares of SFL stock traded up $0.96 during midday trading on Wednesday, reaching $10.09. The company had a trading volume of 2,434,468 shares, compared to its average volume of 1,473,677. The company has a current ratio of 0.42, a quick ratio of 0.42 and a debt-to-equity ratio of 1.96. The stock has a fifty day simple moving average of $8.25 and a 200 day simple moving average of $8.10. SFL has a 1-year low of $6.73 and a 1-year high of $10.84. The company has a market capitalization of $1.47 billion, a price-to-earnings ratio of -1,010.50 and a beta of 0.47.

Analysts Set New Price Targets

A number of equities analysts have commented on SFL shares. Weiss Ratings upgraded shares of SFL from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, February 2nd. Wall Street Zen upgraded shares of SFL from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. Finally, BTIG Research increased their price target on SFL from $10.00 to $11.00 and gave the stock a “buy” rating in a research report on Tuesday, November 11th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, SFL presently has an average rating of “Moderate Buy” and an average target price of $11.00.

Read Our Latest Stock Analysis on SFL

Institutional Investors Weigh In On SFL

Several hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC lifted its stake in shares of 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 acquiring an additional 2,944 shares during the period. Triumph Capital Management bought a new stake in SFL during the 3rd quarter worth about $32,000. Sherbrooke Park Advisers LLC bought a new stake in SFL during the 3rd quarter worth about $79,000. CIBC Bancorp USA Inc. acquired a new stake in shares of SFL during the 3rd quarter worth approximately $97,000. Finally, Captrust Financial Advisors acquired a new stake in SFL during the 2nd quarter worth $134,000. 28.59% of the stock is owned by institutional investors and hedge funds.

SFL Company Profile

(Get Free Report)

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.

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