BTIG maintained its Buy recommendation for Ship Finance International (SFL) following the company’s second-quarter results, which showed adjusted EBITDA of approximately $130 million—about 30% above the consensus estimate of $100 million.
The New York-listed shipping trust reported revenue of $201 million, a 15.3% increase from the prior quarter. Adjusted EBITDA grew roughly 20% sequentially and 16% year-over-year, driven by higher fleet utilization. Net income rose to $34 million, or $0.25 per share, exceeding analyst expectations of $0.075 per share.
The firm set a price target of $14, implying an upside of around 17% from the stock’s recent close of $12.22. Year-to-date, SFL shares have gained 62%. The dividend yield currently stands at 7.2%, with the company maintaining payouts for 23 consecutive years.
Fleet operations showed improvement in the second quarter. Two Suezmax tankers operating in the spot market averaged about $133,000 per day, while 63% of days in the current quarter are fixed at roughly $93,000 per day. Benchmark spot rates on the West Africa-to-Europe route were around $132,000 per day.
SFL also expanded its backlog, securing two vehicle carriers with a capacity of approximately 6,500 car equivalent units on three-year charter contracts starting after existing agreements expire, adding about $83 million to backlog. The company placed an order for four new vehicle carriers with a capacity of roughly 7,000 car equivalent units, valued at approximately $363 million, with deliveries scheduled for 2029. Two of these vessels will enter five-year term charter contracts upon delivery, adding roughly $150 million to backlog, with an option to extend for another five years.
