Ship Finance International Reports First Quarter Net Loss of $87 Million

SFL Corporation Ltd. announced its preliminary financial results for the quarter ended March 31, 2020.

· 65 th consecutive quarterly dividend declared, $0.25 per share

· Operating revenue of $122 million, and net loss of $87 million in the first quarter, including approximately $114 million in non-cash negative adjustments

· Received charter hire1 of approximately $161 million in the quarter from the Company’s vessels and rigs, including $6.4 million of profit share

· Adjusted EBITDA2 of $94 million from consolidated subsidiaries in addition to $26 million from wholly-owned non-consolidated subsidiaries

· Increased the fixed rate charter backlog by approximately $230 million, including charter extensions for ten container vessels and a vessel acquisition

· Acquisition of a 2020-built scrubber fitted VLCC for $65 million with a seven year charter to Landbridge Group and underlying three year sub-charter to an oil major

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

“During the first quarter SFL did not experience any material business interruptions resulting from the Covid-19 pandemic. We have maintained a continuous focus on operational safety with a significant number of proactive measures to ensure safety for crew on board our vessels as well as for onshore employees.

Notwithstanding the impacts of Covid-19 on global trade, all our counterparties are current on charter hire payments, with good visibility for the second quarter. We will of course continue to closely monitor developments in our customers’ end-markets in order to be able to react quickly to any potential business disruptions. At the same time we look for new business opportunities, as illustrated by the acquisition announced earlier today.

In light of the unprecedented market volatility caused by the Covid-19 pandemic, the Board has therefore decided to adjust the quarterly dividend, reflecting the Company’s conservative profile and our commitment to create long term shareholder value.”

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.25 per share. The dividend will be paid on or around June 30, to shareholders on record as of June 18, and the ex-dividend date on the New York Stock Exchange will be June 17, 2020.

Full Report

Source: Ship Finance International

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