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1 SFL Corporation Ltd. Q2 2025 Results Presentation
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2 This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management's examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, changes in demand resulting from changes in the Organization of the Petroleum Exporting Countries’ petroleum production levels and worldwide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of our charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including any changes to energy and environmental policies and changes attendant to trade conflicts, potential disruption of shipping routes due to accidents or political events, the length and severity of the ongoing coronavirus outbreak and its impact on the demand for commercial seaborne transportation and the condition of the financial markets and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. Forward Looking Statements
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3 Q2’25 key highlights Notes: (1) Gross revenue includes charter hire from all vessels and rigs, including assets in 100% owned subsidiaries classified as ‘Investment in associates’ and proportionate charter hire from partly owned vessels; (2) Adjusted EBITDA’ is a non- U.S. GAAP measure. It represents cash receipts from operating activities before net interest and capital payments. For details, please see SFL’s second quarter preliminary earnings release Appendix 1: Reconciliation of Adjusted EBITDA; (3) Based on SFL closing price of $9.01 on August 14, 2025; (4) Fixed rate backlog as of June 30, 2025 including subsequent sales and acquisitions, fully owned vessels, rigs and 100% of four partially owned 19,000 teu container vessels, which SFL also manages. The backlog excludes charterers’ extension options and purchase/cancellation options (if applicable) Recent Events & Highlights $0.20 Dividend per share $4.2 billion contracted backlog4 provides visibility in volatile markets, with more than two thirds contracted to investment grade counterparties Executing on fleet renewal by disposal of older non-strategic assets, freeing up significant investment capacity Five-year extension of three container vessels with Maersk adding approximately $225m to our fixed backlog 86th consecutive quarterly dividend of $0.20 per share ~9%3 Dividend yield $1m Net income $0.01 Earnings per share $194m1 Gross revenue $112m2 Adjusted EBITDA
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4 Notes: (1) Including partly owned vessels and acquired vessels yet to be delivered to SFL; (2) Average charter term weighted by charter revenues, excluding charterer option periods, and adjusted for subsequent sales and acquisitions; (3) Fixed rate backlog as of June 30, 2025 including subsequent sales and acquisitions, fully owned vessels, rigs and 100% of four partially owned 19,000 teu container vessels, which SFL also manages. The backlog excludes charterers’ extension options and purchase/cancellation options (if applicable). Excludes contracted revenue from dry bulk vessels A Leading Maritime Infrastructure Company Portfolio1 Contracted revenue3 30 Container 2 Energy 3 Dry bulk 18 Tanker 7 Car carrier Contract duration2 7.3 years 8.0 years 3.6 years 3.5 years < 1 year 71% 11% 11% 7% Container Tanker Car carrier Energy $4.2bn 66% 34% Investment grade (IG) Not rated or non-IG
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5 • World-leading chemical logistics company • Publicly listed with a market cap of ~$2bn Source: Capital IQ, Bloomberg, Alphaliner, company information Strong Portfolio of Industry Leading Clients % of contracted revenue 29% 21% 10% 7% 5% 4% 3% 2% 4% 1% 12% Undisclosed • Investment grade shipping company • World’s second largest container shipping line • Publicly listed with a market cap of ~$35bn • Rated Baa1 / BBB+ • World’s fifth largest container shipping line • Publicly listed with a market cap of ~$25bn • Rated Ba1 / BB+ • Among the world’s largest independent E&P players based on production and proven reserves • Publicly listed with a market cap of ~$119bn • Rated A2 / A- • One of the world's leading car and commercial vehicle makers • Publicly listed with a market cap of ~$63bn • Rated A3 / BBB+ • Among the largest privately held US companies • Industrial conglomerate operating in several different end markets • Rated Aa3 / AA- • Leading liner operator • Publicly listed with a market cap of ~$10bn • One of the world’s largest charterers of dry and wet shipping tonnage • World’s second largest oil trader • The world’s largest independent energy trader with $330bn turnover in 2024 • Privately owned with head offices in Switzerland Customers with new / add-on business since 2021Others
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6 Notes: (1) Revenue by charter contract type. TC = time charter where SFL is providing crew and ship management services to the charterer. BB = Bareboat where SFL only provides the ship where the charterer undertakes crewing and ship management; (2) For vessels “operating days” equals calendar days less days for technical off hire, dry dock or yard stay. For rigs “operating days” equals days on rate or in transit covered by mobilisation fees less days off hire and time spent in port not on drilling rate; (3) Utilization means Operating days divided by calendar days Operational Performance Highlights Utilization3 Q2 2025 Market Container Car carrier Tanker Dry bulk OPEX Q2 2025 $24m Revenue Q2 2025 $82m $26m $19m $26m Charter type1 Q2 2025 Energy $41m 91% 100% 100% 100% 100% $6m $22m $11m $19m 98.0% 98.9% 96.3% 99.9% 50% Operating days2 Q2 2025 2,899 630 1,489 1,274 91 BB TC
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7 Notes: (1) Not as accounted under US GAAP and including cash flow in 49.9% owned subsidiaries accounted for as ‘investment in associates‘ (Riverbox) SFL Financial Performance Adjusted EBITDA Q2 2025 Breakdown1 $82m $194m $112m $26m $41m $19m $26m Container Car carriers Tanker Dry bulk Energy Gross charter hire (incl. profit share) -$83m Net operating and G&A expenses Adj. EBITDA
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8 Income Statement (in thousands of $ except per share data) Three months ended Jun 30, 2025 Mar 31, 2025 Charter revenues: sales-type leases (excluding charter hire treated as Repayments) 449 471 Charter revenues: operating leases and rig revenue contracts 186,943 183,358 Profit share income 1,135 1,466 Other operating income 4,061 1,444 Total operating revenues 192,588 186,739 Gain on sale of vessels 4,242 — Vessel and rig operating expenses (86,106) (75,797) Administrative expenses (4,377) (5,276) Depreciation (60,864) (60,911) Vessel impairment charge — (34,093) Total operating expenses (151,347) (176,077) Operating income 45,483 10,662 Results in associates 521 625 Interest income from associates 1,138 1,125 Interest income, other 1,953 1,881 Interest expense (45,860) (46,207) Interest and valuation loss on non-designated derivatives (1,577) (985) Loss on investments in debt and equity securities (966) (360) Other financial items 1,235 2,180 Taxes (467) (792) Net income/(loss) 1,460 (31,871) Basic earnings/(loss) per share ($) 0.01 (0.24) Operating Revenue • $193m of charter hire, including share of revenue from associates and revenue classified as repayment, including $1m of profit share • Vessel charter hire of $167m • Rig charter hire of $26m • $4m gain on sale of assets Operating Expenses • Vessel operating expenses of $67m, including $16m related to drydocking • Rig operating expenses of $19m Net Income / (net loss) • $1m or $0.01 per share • $15m or $0.11 per share from shipping related assets • $(13)m or $(0.10) per share from energy related assets
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9 Notes: (1) Book values as of June 30, 2025 Balance Sheet Cash and Liquidity • $156m cash and cash equivalents at quarter end • Approximately $49m of undrawn credit lines • 15 unencumbered assets of $192m at quarter end, with 13 agreed to be sold during Q3 2025 • Sales proceeds from assets subsequent to quarter end of $154m Financing and Capital Expenditure • Ordinary loan instalments of $59m • Repayment of multiple facilities relating to 17 vessels during the quarter • $25m of expected capital expenditures remaining • Capital expenditures of $850m remaining on five large container newbuildings, expected to be funded through pre- and post-delivery financing Capital Structure(1) • Book equity ratio of 25.5% (in thousands of $) Jun 30, 2025 Mar 31, 2025 ASSETS Short term Cash and cash equivalents 155,820 173,945 Investment in marketable securities 2,859 3,660 Amount due from related parties 7,567 5,682 Investment in sales-type leases, current portion 4,450 33,157 Other current assets 113,037 110,831 Long term Vessels, rigs and equipment, net 3,417,008 3,463,645 Capital improvements, newbuildings and vessel deposits 174,584 165,921 Investment in associates 16,074 16,270 Amount due from related parties, long term 45,000 45,000 Other long term assets 15,517 13,937 Total assets 3,951,916 4,032,048 LIABILITIES AND STOCKHOLDERS’ EQUITY Short term Short term and current portion of long term interest bearing debt 825,178 623,494 Amount due to related parties 1,809 1,455 Other current liabilities 115,499 98,611 Long term Long term interest bearing debt, net of deferred charges 1,993,310 2,252,626 Other long term liabilities 6,806 3,473 Stockholders’ equity 1,009,314 1,052,389 Total liabilities and stockholders’ equity 3,951,916 4,032,048 (in thousands of $) Dec 31, 2024
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10 $0.20 Dividend per share 60 Maritime assets $156m Cash and cash equivalents $4.2bn Fixed revenue backlog SFL Corporation – Summary