SFL Corporation Ltd.: Q2 2020 presentation

Aug 20 2020


Highlights:

DIVIDEND $0.25/share
-66th consecutive quarterly dividend 
-10.5% dividend yield
 
CHARTER HIRE $158m
-More than 90% from long term charters  
-Adjusted EBITDA of $121m
 
LIQUIDITY $152m
-$152m of cash at quarter end, excl. $15m in 100% owned associates 
-$35m of marketable securities
 
CHARTER BACKLOG $3.4bn
-Added backlog of approximately $95m 
-Combination of charter extensions and vessel acquisition

 

Recent Events

ACQUISITION OF NEW VLCC

-Attractive acquisition price and underlying sub charter to oil major 

-Charter backlog increase of ~$60m

 

EXTENSION OF CHARTERS

-Seven vessels extended by an average of four years 

-Added backlog of ~$38m

 

SALE OF 2x VLCCs

-Purchase options declared on 2x VLCCs with delivery in August

-~$23m positive cash effect to SFL

 

FINANCING

-Refinanced 4x large container vessels at a historically low interest cost

-Redemption of NOK 500m bond loan in June

 

Strong Focus On Mitigating Covid-19 Impact

-Maintaining a continuous focus on operational safety with a significant number of proactive measures to ensure health and safety for crew on board vessels and onshore employees

-No material disruptions to operations in Q2 apart from some dry docking delays and lower earnings on spot trading liner and dry bulk vessels

-Majority of revenues secured on long term, fixed rate contracts that are insulated from short term volatility in underlying markets

-SFL is closely monitoring counterparty risk associated with all vessels to identify and mitigate any potential business impact

 

FULL REPORT.



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