SFL Corporation Ltd. (SFL)

On 28 October 2026 SFL agreed to acquire two 8,800 TEU container vessels due in 2027 and one 93,000 cbm dual-fuel Very Large Ammonia Carrier due in 2028 3. The aggregate acquisition cost is about $365 million 3.

The container vessels carry minimum 8-year time charters to a leading liner company, and the ammonia carrier a minimum 5-year time charter to a global leader in the commodities industry 3. The company said these charters add a minimum of about $333 million to its fixed-rate charter backlog 3.

On 7 October the company agreed a sale of seven tankers to Trafigura, with net cash proceeds estimated at about $275 million and an estimated book gain of about $175 million 5. Bloomberg reported that disruptions to shipping through the Strait of Hormuz have drawn in scores of tankers 8.

On 13 October the Borgarting Court of Appeal found that Seadrill breached the contract when it returned the drilling rig Hercules, and ordered it to pay SFL's subsidiary about NOK 525 million, roughly $55 million 4. Either party may appeal to the Supreme Court of Norway within one month of service 4.

The newest quarterly figures on file, for the second quarter of 2026, show total operating revenues of about $201 million and net income of $34 million, or $0.25 per share 2.

SFL was formed in 2003 as a wholly owned subsidiary of Frontline, a major operator of large crude oil tankers 1. In 2004 Frontline distributed 25% of SFL's common shares to its shareholders, and the shares began trading on the NYSE on 14 June 2004 1.

The first assets were Suezmax tankers, very large crude carriers and oil/bulk/ore carriers 1. Since 2004 the company has diversified into eight asset types, and Frontline's ownership is now less than one percent 1.

In 2023 two dual-fuel car carriers, Emden and Wolfsburg, were delivered in September and November and began 10-year time charters to Volkswagen Group 1. The company also sold two Suezmax tankers, two chemical tankers and the VLCC Landbridge Wisdom that year 1.

In 2024 two more car carriers began 10-year charters to K Line 1. Three LR2 product tankers came from entities related to the largest shareholder Hemen for $234.9 million 1. Two chemical tankers were acquired for $113.6 million 1.

In July 2024 it agreed to build five dual-fuel 16,800 TEU container vessels for $962.5 million in total, due in 2028 1. In autumn 2024 it exercised purchase options on seven container vessels that had been under a Japanese operating lease structure 1.

Revenue peaked at $904 million in 2024 and fell 18.9% to $733 million in 2025 1. The main reason was drilling: drilling contract revenues fell 59% because the rig Hercules was warm stacked in Norway, meaning kept ready but without a contract 1.

Sales also shrank the fleet in 2025: the company delivered eight Capesize dry bulk carriers to Golden Ocean in July for net proceeds of $114.1 million and sold five Supramax dry bulk carriers 1. It recorded impairment charges of $26.7 million on the Supramax carriers and $7.4 million on two Kamsarmax carriers 1.

The result was a net loss of $26.4 million in 2025, against a net profit of $130.7 million in 2024 1. Total debt was $2.6 billion at the end of 2025, down from $2.9 billion a year earlier, and four dividends in 2025 totaled $0.94 per share 1.

It invested $117.8 million in 2023 in surveys, ballast water systems and upgrades on the semi-submersible rig Hercules 1.

Linus came back from Seadrill in September 2022 and Hercules in December 2022, and Oslo District Court ruled in the company's favor in February 2025 14.

Container vessels

In the second quarter of 2026 they earned $83 million of charter hire over 2,258 operating days at 99% utilization 2.

As of 31 December 2025 the company owned 21 container vessels, with five dual-fuel 16,800 TEU ships under construction 1. Maersk and MSC are named customers, and on 11 September 2026 the company agreed to extend the charters of six 15,400 TEU ships with Hapag-Lloyd by seven years 17.

The extension adds about $750 million to the fixed-rate charter backlog and gives those vessels charter coverage until 2035-2036 7. The backlog rose to about $4.6 billion 7.

Car carriers

In the second quarter of 2026 the car carrier line earned $27 million of charter hire over 637 operating days at 100% utilization 2.

The company fixed SFL Conductor and SFL Composer, two 6,500 ceu ships, on three-year charters to a leading global liner company based in Asia 2. It also ordered four 7,000 ceu dual-fuel car carriers for about $363 million, due in 2029, two of them on five-year charters to a major Asia-based car manufacturer 2.

Tankers

In the second quarter of 2026 tankers earned $62 million of charter hire over 1,453 operating days, up from $46 million in the first quarter 2. Two Suezmax tankers trading in the spot market achieved average daily time charter equivalent earnings of about $133,000 per vessel 2.

Seven of the tankers, four LR2 product tankers and three Suezmax tankers, are being delivered to Trafigura in the fourth quarter of 2026 and the first quarter of 2027, and their charters end on delivery 5. A chemical tanker pair, SFL Bonaire and SFL Aruba, work with Stolt Tankers under eight-year arrangements 1.

Dry bulk carriers

Two Kamsarmax dry bulk vessels remain in the spot and short-term market, and the bulker line earned $3 million of charter hire in the second quarter of 2026 2.

Drilling rigs

The company owns two rigs: the 2014-built jack-up Linus and the 2008-built semi-submersible Hercules 1. Linus is under contract with ConocoPhillips in Norway until May 2029 1.

In March 2026 Hercules won a Canadian drilling contract worth about $170 million over a minimum of about 400 days 1. It is expected to start in the first quarter of 2027 1. The energy line earned $24 million in the second quarter of 2026 at 50% utilization 2.

Rivals and the market

The company says the markets for oil, dry bulk, container and car transportation are highly fragmented and competitive 1. Competition for charters is based on price, location, size, age, specifications, condition and acceptability of the vessel or rig 1.

People and problems

Ole B Hjertaker signs the company's reports as principal executive officer for SFL Management AS, and Aksel Olesen is chief financial officer 32. The company has 24 full-time employees and contracts independent managers for technical management of its vessels and rigs 1.

The annual report says the company has started talks with lenders on facilities maturing in 2026 and early 2027 1. It warns that no assurance can be given they will be refinanced on acceptable terms 1. Remaining capital commitments on nine newbuildings were about $1.2 billion at the end of the second quarter of 2026 2.

The umbrella, in words

The company operates through subsidiaries and branches in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom and the Marshall Islands 1. It also owns an equity interest in an associated company that owns four leased-in container vessels 1.

Hemen Holding Limited owned 25,728,687 common shares, or 17.8%, as of 11 March 2026, through trusts established by John Fredriksen for his family 1. DNB Bank ASA reported 8.1% and Dimensional Fund Advisors LP 6.0% 1.

The DNB holding comes from a share lending arrangement after the maturity of convertible bonds, not from an investment of its own 1. Related parties named in the annual report include Frontline, Seatankers and Golden Ocean, companies linked to Hemen 1.

The company declared its 90th consecutive quarterly dividend of $0.22 per share with the second-quarter results 2. Its board has authorized repurchases of up to $100 million of common shares, valid until June 2029, at the company's discretion 2.

Five 16,800 TEU container vessels are due in 2028 and four car carriers in 2029 2. The two ammonia carriers ordered on 5 October are scheduled from the second quarter of 2028 at about $216 million 6.

The charter period for those two ammonia carriers is to be set within six months, and the charterer has options to extend by up to 4 years 6. The container charters agreed on 28 October may be extended by up to four years 3.

The company says it expects to reinvest the Trafigura sale proceeds in new investments that build long-term distribution capacity 5. Deliveries of the seven tankers run through the first quarter of 2027 5.

Hercules is expected to start its Canadian contract in the first quarter of 2027 1. The Seadrill judgment can be appealed within one month of service, and an appeal is heard only if the Supreme Court's committee grants leave 4.

At the end of June 2026 the contracted fixed-rate charter backlog was about $3.8 billion with a weighted remaining charter term of 6.2 years 2. About 65% of it is owed by customers with an investment grade credit rating 2.

On financing, the company says most remaining yard instalments are expected to be financed by credit facilities 2. It has no further plans to issue additional shares in the near term 2.

The company says it has added more than $1.6 billion to its fixed-rate charter backlog this year 3. Its chief executive described the aim as building the asset portfolio by combining newbuilds with early delivery and charters to existing high-quality counterparties 3.