Aug. 19 at 4:06 PM
SFL Corporation shares fell 12% after the shipping and energy firm cut its quarterly dividend to
$0.20/share from
$0.27, citing drilling platform market challenges and short-term cash flow constraints.
Q2 EPS came in at
$0.01, beating analyst expectations of a
$0.05 loss, with revenue of
$192.58M versus a consensus of
$192.4M. Despite revenue beats, investors focused on the dividend cut due to market uncertainty and oil price volatility impacting the Hercules drilling platform.
SFL reported $ 194M in charter revenue (87% shipping, 13% energy) and $ 104M adjusted EBITDA from consolidated subsidiaries ($ 97M shipping, $ 7M energy), plus $ 8M from joint venture vessel owners.
CEO Ole B. Hjertaker highlighted fleet renewal efforts, including sales of older vessels for over $ 200M and a 5-year charter extension for three container ships with Maersk, adding ~$ 225M to the company’s order backlog.
$SFL