SFL Cuts Dividend Amid Fleet Renewal
(NYSE:SFL) reported second-quarter 2025 results on August 13, 2025, posting total operating revenues of $192 million (GAAP) and adjusted EBITDA of $112 million. The company reduced its quarterly dividend to $0.20 per share due to the continued idling of its Hercules drilling rig and recent asset disposals, while maintaining a $4.2 billion charter backlog and liquidity exceeding $300 million. The following insights examine SFL's fleet renewal, dividend policy, and risk management based on management commentary and quantitative disclosures.
During the quarter, SFL completed the sale of 20 older vessels, including eight Capesize bulkers and seven container ships, reducing the average fleet age by about two years. This move was prompted by stricter emissions regulations and the inability to secure new long-term charters for less efficient vessels.
This strategic pruning positions SFL for long-term charter rate premiums and regulatory compliance, enhancing its competitive standing in a tightening market for efficient vessels.
Source Fool.com
SFL Corp. Ltd. Stock
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With a target price of 9 € there is a positive potential of 27.77% for SFL Corp. Ltd. compared to the current price of 7.04 €.
