Bermuda's SFL preliminary Q1 revenue at $174 mln, ups dividend

Overview

• Bermuda shipping and energy lessor's preliminary Q1 operating revenue totaled $174 mln, mostly from shipping

• Preliminary Q1 net income was $26 mln, adjusted EBITDA reached $108 mln

• Company increased quarterly dividend to $0.22 per share

Outlook

• Company did not provide specific financial guidance or outlook for future periods in its press release

Result Drivers

• TANKER PERFORMANCE - Co said strong spot market performance from two Suezmax tankers supported results

• DRILLING CONTRACT - Co secured a $170 mln drilling contract for the semi-submersible rig Hercules

Company press release: ID:nGNEblfCsN

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Sfl Corporation Ltd is $11.20, about 6.7% below its May 11 closing price of $12.00

• The stock recently traded at 59 times the next 12-month earnings vs. a P/E of 82 three months ago

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