SFL Corporation Ltd reported second-quarter net income of $34 million, a 30.8% increase from $26 million in the prior quarter, as tanker spot rates surged to an average of $133,000 per day.
Earnings per share rose to $0.25 from $0.20 in Q1, exceeding a forecast of $0.075 by approximately 233%. Revenue climbed 15.3% to $201 million, beating the $171.78 million estimate by 17%. Adjusted EBITDA increased 20.4% to $130 million, while gross charter hire totaled $199 million across the fleet.
The company's fleet utilization remained high, with container vessels at 99.3%, car carriers at 100%, and tankers at 99.8%. Tanker rates averaged $133,000 per day in Q2, up from $54,000 in Q1 and roughly $30,000 in December, reflecting strong market conditions. Handymax product vessels saw spot time charter equivalents rise to $16,100 per day from $10,700.
SFL maintained its dividend at $0.22 per share, marking the 90th consecutive quarterly payout and yielding 7.2%. The company has returned over $32 per share in dividends since 2004, totaling $3 billion in cumulative payouts. Cash and cash equivalents stood at $113 million at quarter-end, with available liquidity exceeding $270 million.
Management highlighted strong tanker market dynamics, with CEO Ole Hjertaker noting rates had risen by more than $100,000 per day per vessel compared to last year. The company also raised $100 million in equity through ATM and DRIP programs, issuing 8.8 million shares.
SFL's charter backlog increased to $3.8 billion, with 65% tied to investment-grade customers. The company ordered four dual-fuel car carriers with deliveries through 2029, costing approximately $360 million, and extended older car carriers with Volkswagen for three years, adding $83 million to the backlog.
The stock traded at $12.07, down 1.23% on the day but up 62% year-to-date and 64% over the past 12 months. The P/E ratio stood at 51.3, with the 52-week range between $6.73 and $12.94.
