SFL reported third-quarter 2026 net income of $37 million, or $0.26 per share, exceeding analysts’ forecast of $0.124 per share. Revenue reached $202 million, above the $177.14 million expected by analysts and roughly unchanged from the prior quarter.
Despite the earnings beat, SFL shares fell 3.01% in pre-market trading to $11.959, compared with a previous close of $12.33. The company’s EBITDA-equivalent cash flow declined to $122 million from $130 million in the second quarter, while operating expenses and general and administrative costs rose to $73 million from $69 million.
SFL said net income increased from $34 million in the previous quarter. It declared a quarterly dividend of $0.22 per share, its 91st consecutive quarterly payment, according to the company’s announcement.
The company’s backlog has reached $5 billion, supported by charter extensions, vessel acquisitions and newbuild orders. Management said nearly 80% of the backlog is associated with investment-grade or near-investment-grade customers. SFL also reported total available liquidity of $272 million, including $112 million in cash and $160 million in undrawn credit facilities.
Chief Executive Ole Hjertaker said the company was maintaining one Suezmax tanker in the spot market to benefit from strong rates. The vessel earned an average of about $80,000 a day in the third quarter and had been covered at more than $200,000 a day for two-thirds of its fourth-quarter days so far, he said.
SFL expects seven tanker sales to Trafigura to close in the fourth quarter of 2026 and the first quarter of 2027. The company also has two 8,800 TEU container vessels scheduled for delivery in 2027, three ammonia carriers due in 2028 and four newbuild car carriers planned for 2029. It said remaining capital commitments total $1.7 billion and are expected to be funded through cash generation and credit facilities.
Sources: Investing.com News.