Presentation

SFL Corporation was established in 2003 and has since evolved from a pure tanker owning company to one of the world’s largest ship owners. The company is listed on NYSE and its largest shareholder is Hemen Holding, a company controlled by Mr. John Fredriksen.

SFL’s strategy is to grow profitably by having a significant backlog and investments in several segments, thus allowing for quarterly dividends. Since the 2004-listing, the company has paid dividends in every quarter (70 consecutive quarters, incl. Q2’21). SFL has profit-sharing agreements with some counterparties (e.g., Frontline and Golden Ocean), providing upside exposure to favorable spot rates.

As of Q2’21, the total charter backlog was USD 2.7bn, with more than USD 700m added so far in 2021. The backlog is mostly (~80%) contracted revenue from liners (e.g., MSC, Maersk, Evergreen), followed by the dry bulk segment (~13%), with the rest being tankers, car carriers and offshore rigs.

Of noteworthy new investments this year are both newbuildings and second-hand vessels. The former consists of, among others, two LNG dual-fuel car carriers with 10-year TCs to Volkswagen with delivery in 2023. SFL also entered multiple new contracts with liners, such as two 14,000 TEUs to Evergreen (contract until ‘23/’24), and two 6,800 TEUs with Maersk until 2027.