SFL Posts $37 Million Q3 Profit, Adds Long-Term Charters and Plans Tanker Sales

SFL Corporation Ltd. reported third-quarter 2026 net income of $37.4 million, or $0.26 per share, as the maritime asset owner added long-term container and gas-carrier commitments and agreed to sell seven tankers for estimated net cash proceeds of about $275 million.

Operating revenue totaled $201.6 million, compared with $200.8 million in the second quarter. Net income increased from $33.8 million, or $0.25 per share, in the prior quarter, supported in part by positive non-cash mark-to-market effects. The company recorded a $13 million positive effect from swaps and a $1 million positive effect from equity investments.

SFL reported $122 million of adjusted EBITDA, a non-GAAP measure, on gross charter hire and profit-sharing income of $195 million. The container fleet contributed $85 million of that total, followed by tankers at $56 million, car carriers at $27 million, energy assets at $23 million and dry-bulk vessels at $3 million. Net operating and general and administrative expenses were $73 million.

Operating income declined to $56 million from $65.2 million in the second quarter. Vessel and rig operating expenses rose to $85.4 million from $73.8 million, while depreciation increased to $56.3 million from $54.8 million. Administrative expenses fell to $3.9 million from $6.9 million.

The company reported $178 million of vessel charter hire and $23 million of rig charter hire during the quarter. Interest expense was $34.6 million, while interest and valuation gains on non-designated derivatives totaled $14.1 million.

Long-Term Charter Commitments Expand

SFL secured seven-year charter extensions for six 15,400-TEU container vessels, beginning from 2028 or 2029. It also added two 8,800-TEU container newbuildings backed by eight-year charters, with delivery scheduled for the second half of 2027.

The company separately committed to three 93,000-cubic-meter very large ammonia carrier newbuildings with long-term charters. Those vessels are scheduled for delivery in the second half of 2028.

At September 30, SFL’s fixed-rate revenue backlog stood at $5 billion, including subsequent acquisitions and sales. Investment-grade counterparties represented 58% of the backlog, with the remaining 42% tied to unrated or non-investment-grade counterparties. The backlog excludes charter extension options, purchase or cancellation options, contracted dry-bulk revenue, chemical-vessel pool trading and potential future profit-sharing income.

SFL’s portfolio comprised 66 maritime assets, including partly owned vessels and contracted acquisitions not yet delivered. The portfolio included 32 container vessels, 16 tankers, 11 car carriers, three gas carriers, two dry-bulk vessels and two energy assets.

Tanker Sale and Capital Commitments

SFL agreed to sell seven tanker vessels for estimated aggregate net cash proceeds of approximately $275 million. Deliveries to the new owner are expected to be split between the fourth quarter and the first quarter.

The company ended the quarter with $111.9 million of cash and cash equivalents and $160 million of undrawn credit lines, providing total stated liquidity of about $272 million. Remaining capital expenditure commitments were approximately $1.7 billion, which SFL expects to fund through a combination of available cash and secured credit facilities.

Total interest-bearing debt was approximately $2.33 billion at quarter-end, including $612.8 million classified as short term or as the current portion of long-term debt. Stockholders’ equity was $1.09 billion, and the company reported a book equity ratio of about 31%.

SFL reported a dividend of $0.22 per share, marking its 91st consecutive quarterly dividend.

The company cautioned that its forward-looking expectations depend on assumptions subject to significant uncertainty. Identified risks include changes in charter rates and vessel values, interest-rate and currency movements, charterer and counterparty performance, construction costs and delivery timing, operating and insurance expenses, regulatory changes, commodity demand, trade conflicts and potential disruptions to shipping routes.