Earnings release
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Preliminary Earnings Release Q2 2026 SFL Corporation Ltd.
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2 Preliminary Q2 2026 results and quarterly cash dividend of $0.22 per share SFL Corporation Ltd. (“SFL” or the “Company”) today announced preliminary financial results for the quarter ended June 30, 2026. Highlights • 90th consecutive quarterly dividend declared, $0.22 per share • Total operating revenues of $201 million • Adjusted EBITDA1 of $130 million, including $8 million from associated companies • Reported net income of $34 million or $0.25 per share • Strong contribution from two Suezmax tankers in the spot market • New long term charters for PCTC vessels SFL Composer and SFL Conductor • Newbuild order for four PCTC vessels, in combination with long term time charters • Successfully raised $100 million in new equity Quarterly Dividend The Board of Directors has declared a quarterly cash dividend of $0.22 per share. The dividend will be paid on or around September 22, and t he record - and ex -dividend date on the New York Stock Exchange will be September 9, 2026. Results for the Quarter ended June 30, 2026 The Company reported total U.S. GAAP operating revenues on a consolidated basis of approximately $201 million in the second quarter of 2026. This figure is lower than the cash received as it excludes approximately $8 million of charter hire 2 which is not classified as operating revenues pursuant to U.S. GAAP, but as ‘investment in associates’ for accounting purposes. The net result in the second quarter was impacted by non-recurring or non-cash items, including net positive mark-to-market effects from hedging derivatives of approximately $3.3 million and negative mark-to-market effects from equity investments of approximately $1.2 million. Reported net income pursuant to U.S. GAAP for the second quarter was $34 million, or $0.25 per share. 1 ‘Adjusted EBITDA’ is a non-U.S. GAAP measure. It represents cash receipts from operating activities before net interest and capital payments. 2 Charter hire represents the amounts billable in the period by the Company and its associates for chartering out vessels and rigs. This is mainly the contracted daily rate multiplied by the number of chargeable days plus any additional billable income, including profit share and attributable mobilization fees, if any. Long term charter hire relates to contracts undertaken for a period greater than one year. Short term charter hire relates to contracts undertaken for a period less than one year, including voyage charters.
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3 Business Update As of June 30, 2026, the contracted fixed rate charter backlog3 from the Company’s fleet of vessels including newbuildings under construction was approximately $3.8 billion with a weighted remaining charter term of 6.2 years. Approximately 65% of the fixed rate charter backlog is to customers with an investment grade credit rating, demonstrating the strength and quality of our charter portfolio. In the second quarter of 2026, the Company’s fleet generated gross charter hire4 of $199 million. Q2 2026 Q1 2026 Charter hire4 Operating days5 Utilization6 Charter hire4 Operating days5 Utilization6 Container $83m 2,258 99% $81m 2,229 99% Car Carrier $27m 637 100% $26m 630 100% Tanker $62m 1,453 100% $46m 1,474 100% Bulker $3m 181 99% $2m 175 97% Energy $24m 91 50% $23m 90 50% The Company has two Suezmax tankers and two Kamsarmax dry bulk vessels deployed in the spot and short- term charter market. During the second quarter, our Suezmax tankers and Kamsarmax dry bulk vessels achieved average daily spot Time Charter Equivalent (TCE ⁷) per vessel of approximately $ 133,000 and $16,000, respectively. In May 2026, SFL fixed the two 6,500 ceu PCTCs, SFL Conductor and SFL Composer, on three-year time charters to a leading global liner company based in Asia. The charters will commence back-to-back with their current charters that are set to expire at the end of this year and start of next year. This will increase the firm backlog contribution from these vessels by approximately $83 million. The Company has recently ordered four 7,000 ceu LNG Dual-Fuel PCTC newbuilds, with deliveries scheduled in 2029. The total investment is approximately $363 million with two of the newbuilds fixed on five-year time charters to a major Asia-based car manufacturer , with options for another five years. Th e initial period increases the total firm backlog by approximately $150 million. Financing and Capital Expenditure As of June 30, 2026, cash and cash equivalents amounted to approximately $113 million. In addition, the Company had $160 million available under undrawn credit lines , representing a total available liquidity of approximately $273 million at quarter end. In the second quarter, the Company successfully raised approximately $78 million through a tap issue of its senior unsecured bonds due 2030 . The implied yield to maturity was approximately 6.8% at the time of issuance, with the total outstanding amount now being $225 million. Also in the second quarter, the Company 3 Fixed rate backlog as of June 30, 2026 includes fully owned vessels, rigs and 100% of four partially owned 19,000 teu container vessels, which SFL also manages. It also includes subsequent transactions. The contracted fixed rate charter backlog excludes charterers’ extension options. 4 Charter hire represents the amounts billable in the period by the Company and its associates for chartering out vessels and rigs. This is mainly the contracted daily rate multiplied by the number of chargeable days plus any additional billable income, including profit share and attributable mobilization fees, if any. Long term charter hire relates to contracts undertaken for a period greater than one year. Short term charter hire relates to contracts undertaken for a period less than one year, including voyage charters. 5 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. 6 Utilization means Operating days divided by calendar days. 7 TCE or Time Charter Equivalent earnings is a non-GAAP measure calculated as voyage revenues less voyage expenses divided by available days. Pursuant to US GAAP, revenues are recorded on a load to discharge basis.
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4 fully redeemed a $150 million senior unsecured bond loan due 2026. From May through July, the Company raised approximately $100 million in net proceeds through its dividend reinvestment and at -the-market program, issuing approximately 8.8 million new shares at an average price above VWAP for the corresponding period. The Company has no further plans to issue additional shares in the near term. In addition to the four newly ordered PCTC newbuildings, the Company has five 16,800 TEU container vessels under construction, scheduled for delivery in 2028. The total remaining capital expenditure commitments on all nine newbuildings is approximately $1.2 billion. The majority of the remaining yard instalments are expected to be financed by pre- and post-delivery credit facilities. Corporate and Other Matters The Company’s Board of Directors has authorized the repurchase of up to an aggregate of $100 million of the Company's common shares from time to time, valid until June 2029. The Company also has dividend reinvestment (“DRIP”) and at-the-market (“ATM”) offering program, pursuant to which it may issue up to 10 million and raise up to $100 million of its common shares, respectively, from time to time. As outlined above, the Company has utilized a combined $100 million from these programmes during the second and third quarters. Any of the above referenced programs, including repurchase or sale of shares will be at the discretion of the Company, and the timing, including the amount of any repurchase or sale of shares, as applicable, will depend on, among other things, legal requirements, market conditions, stock price, alternative uses of capital, capital availability, and other factors. SFL is not oblig ed under the terms of any board authorization, including in respect of a share repurchase, an ATM or a DRIP program, to repurchase, issue or sell any number of shares and the foregoing may be amended, suspended or reinstated at any time at the Company's discretion and without further notice. Cautionary Statement Regarding Forward Looking Statements This press release may contain 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, inflationary pressures and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, the supply of and demand for oil and oil products and vessels, including drilling rigs, comparable to ours, including against the background of the possibility of accelerated climate change transition worldwide, including shifts in consumer demand for other energy resources could have an accelerated negative effect on the demand for oil and thus its transportation and drilling, 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 and resulting changes to trade patterns , technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bu nker prices, dry docking and insurance costs, performance of the Company’s 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
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5 under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from future litigation, including litigation related to claims raised by public -interest organizations or activism with regard to failure to adapt or mitigate climate impact, world events, political instability, international sanctions or international hostilities, and potential physical disruption of shipping routes as a result thereof, the impact of restr ictions on trade, including the imposition of new tariff s, port fees and other important restrictions, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. August 26, 2026 The Board of Directors SFL Corporation Ltd. Hamilton, Bermuda Questions may be directed to SFL Management AS: Espen Nilsen Gjøsund, Vice President - Investor Relations: +47 47500500 André Reppen, Chief Treasurer & Senior Vice President: +47 23114055 Aksel C. Olesen, Chief Financial Officer: +47 23114036 For more information about SFL, please visit the Company’s website: www.sflcorp.com
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SFL CORPORATION LTD. SECOND QUARTER 2026 REPORT (UNAUDITED) INCOME STATEMENT Three months ended Full year (in thousands of $ Jun 30, Mar 31, 2025 except per share data) 2026 2026 (audited) Charter revenues: sales-type leases (excluding charter hire treated as Repayments)(1) — — 951 Charter revenues: operating leases and rig revenue contracts 191,383 171,574 713,195 Profit share income 2,152 1,323 5,604 Other operating income 7,230 1,586 13,291 Total operating revenues 200,765 174,483 733,041 Gain/(loss) on sale of vessels and settlement of charters — 11,503 (7,172) Vessel and rig operating expenses (73,820) (67,576) (301,768) Administrative expenses (6,933) (7,596) (18,332) Depreciation (54,792) (54,460) (234,998) Vessel impairment charge — — (34,093) Total operating expenses (135,545) (129,632) (589,191) Operating income 65,220 56,354 136,678 Results in associates 576 631 2,366 Interest income from associates 1,138 1,125 4,563 Interest income, other 1,598 1,267 10,218 Interest expense (36,443) (38,142) (180,527) Interest and valuation gain/(loss) on non-designated derivatives 4,009 3,195 (1,478) (Loss)/gain on investments in equity securities (1,231) 1,928 (39) Other financial items (674) 349 3,670 Taxes (400) (630) (1,882) Net income/(loss) 33,793 26,077 (26,431) Basic earnings/(loss) per share ($) 0.25 0.20 (0.20) Weighted average number of shares(2) 134,572,875 132,832,489 133,063,652 Common shares outstanding(2) 138,670,282 132,992,784 132,797,785 (1) ‘Charter revenues: sales-type leases’ are reported net of charter hire classified as ‘Repayment of Investment in sales-type leases’ under US GAAP, which for the three months ended June 30, 2026 was $0.0 million (three months ended March 31, 2026: $0.0 million; full year 2025: $4.0 million). (2) The weighted average number of shares and the number of common shares outstanding excludes approximately 11.8 million shares issued by SFL as part of share lending arrangements and 2.3 million shares held by SFL as treasury stock. The shares are owned by SFL, thus they are excluded in the calculation of earni ngs per share.
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SFL CORPORATION LTD. SECOND QUARTER 2026 REPORT (UNAUDITED) BALANCE SHEET Jun 30, Mar 31, Dec 31, 2025 (in thousands of $) 2026 2026 (audited) ASSETS Short term Cash and cash equivalents(1) 113,104 127,564 150,829 Investment in marketable securities 5,013 6,213 4,146 Amount due from related parties 11,865 8,599 6,941 Other current assets 121,453 112,931 97,302 Long term Vessels, rigs and equipment, net 2,992,540 3,037,733 3,122,633 Capital improvements in progress and newbuildings 188,781 182,147 181,074 Investment in associates(2) 15,586 15,728 15,832 Amount due from related parties, long term(2) 45,000 45,000 45,000 Other long term assets 22,417 19,518 14,386 Total assets 3,515,759 3,555,433 3,638,143 LIABILITIES AND STOCKHOLDERS’ EQUITY Short term Short term and current portion of long term interest bearing debt 575,539 723,259 605,943 Amount due to related parties 1,377 1,188 1,303 Other current liabilities 84,521 79,854 103,079 Long term Long term interest bearing debt, net of deferred charges 1,808,877 1,778,668 1,960,533 Other long term liabilities 10,067 7,638 6,423 Stockholders’ equity 1,035,378 964,826 960,862 Total liabilities and stockholders’ equity 3,515,759 3,555,433 3,638,143 (1) Not including cash held by affiliates accounted for as ‘Investment in associates’. (2) One of our affiliates was accounted for as ‘Investment in associates’ at quarter end. Our investment is a combination of equi ty classified as ‘Investment in associates’ and any loans from the Company to the affiliate included within ‘Amount due from relate d parties, long term’.
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SFL CORPORATION LTD. SECOND QUARTER 2026 REPORT (UNAUDITED) STATEMENT OF CASHFLOWS Three months ended Full year (in thousands of $) Jun 30, Mar 31, 2025 2026 2026 (audited) OPERATING ACTIVITIES Net income/(loss) 33,793 26,077 (26,431) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 58,373 57,062 243,449 Vessel impairment charge — — 34,093 Capitalized lease debt financing interest 2,398 2,346 8,142 Adjustment of derivatives to fair value recognised in net income (3,343) (2,546) 4,646 Loss/(gain) on investments in equity securities 1,231 (1,928) 39 Results in associates (576) (631) (2,366) Gain on sale of vessels, net — (11,503) (15,828) Repayment of investment in sales-type leases — — 4,021 Other, net (208) 2,052 4,296 Change in operating assets and liabilities (3,345) (36,843) 13,082 Net cash provided by operating activities 88,323 34,086 267,143 INVESTING ACTIVITIES Purchase of vessels, capital improvements and newbuildings (16,232) (7,435) (70,482) Proceeds from sale of vessels — 48,308 258,574 Other investments (140) — — Net cash (used in)/provided by investing activities (16,372) 40,873 188,092 FINANCING ACTIVITIES Proceeds from long and short term debt 155,600 150,000 244,042 Repayment of long and short term debt (276,497) (219,988) (538,431) Financing premiums and costs, net 1,193 (1,672) (3,168) Net cash flows on swaps — — (6,265) Cash received/(paid) for shares issued or repurchased 63,007 — (10,025) Cash dividends paid (29,714) (26,564) (125,110) Net cash used in financing activities (86,411) (98,224) (438,957) Net (decrease)/increase in cash and cash equivalents (14,460) (23,265) 16,278 Cash and cash equivalents at beginning of period 127,564 150,829 134,551 Cash and cash equivalents at end of period 113,104 127,564 150,829
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ASSOCIATED COMPANIES ACCOUNTED FOR AS INVESTMENT IN ASSOCIATES SECOND QUARTER 2026 (UNAUDITED) Condensed income statement data for the three months ended June 30, 2026 River Box (in thousands of $) Holding Inc Ownership share presented 49.9% Charter revenues - direct financing leases (net of charter hire treated as Repayment of investment in direct financing leases)(1) 3,822 Interest expense, related party(2) (568) Interest expense, other (2,702) Other items 24 Net income (3) 576 (1) ‘Charter revenues – direct financing leases’ are reported net of charter hire classified as ‘Repayment of investment in direct financing leases’ under US GAAP, which for the three months ended June 30, 2026 was $3.9 million. (2) ‘Interest expense, related party’ from this affiliate is included in the Company’s consolidated income statement as ‘Interest income from associates’. For the three months ended June 30, 2026, the Company recorded approximately $1.1 million from this associate. In the above table, the Company's 49.9% share of River Box Holding’s income statement is shown. (3) ‘Net income’ from this affiliate appears in the Company’s consolidated income statement as ‘Results in associates’. Condensed balance sheet data as of June 30, 2026 River Box (in thousands of $) Holding Inc (1) Ownership share presented 49.9% Cash and cash equivalents 2,542 Investment in direct financing leases including current portion 198,239 Total assets 200,781 Short term and long term portions of lease liability 161,630 Other current liabilities 1,110 Long term loans from shareholders, net(2) 22,455 Stockholder's equity(3) 15,586 Total liabilities and stockholder's equity 200,781 (1) The numbers represent the Company's relative share of 49.9% in River Box Holding Inc. (2) The Company has a $45.0 million loan to River Box included within ‘Amount due from related parties, long term’. In the above table, the Company's 49.9 % shar e of River Box Holding’s balance sheet is shown. (3) ‘Stockholder’s equity’ from affiliates appears in the Company’s consolidated balance sheet as ‘Investment in associates’.
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SFL CORPORATION LTD. SECOND QUARTER 2026 (UNAUDITED) Shipping and Energy condensed income statement data for the three months ended June 30, 2026 INCOME STATEMENT Shipping Energy Total (in thousands of $) Total operating revenues 176,511 24,254 200,765 Total operating expenses (95,760) (39,785) (135,545) Operating income/(loss) 80,751 (15,531) 65,220 Interest expense (33,241) (3,202) (36,443) Other non-operating items 5,622 (206) 5,416 Taxes — (400) (400) Net income/(loss) 53,132 (19,339) 33,793
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APPENDIX 1: RECONCILIATION OF ADJUSTED EBITDA SECOND QUARTER 2026 (UNAUDITED) Adjusted EBITDA data for the three months ended June 30, 2026 ADJUSTED EBITDA Shipping Energy Total 49.9% owned (in thousands of $) associates Net cash provided by operating activities 79,198 9,125 88,323 4,451 Non cash movements in other assets and liabilities 12,949 (10,828) 2,121 49 Interest related to Non- Designated Derivatives (666) — (666) — Interest expense excl. amortization of deferred charges 32,014 3,056 35,070 2,702 Interest income, other (1,323) (212) (1,535) — Interest (income)/expense from associates (1,138) — (1,138) 568 Adjusted EBITDA (1) 121,034 1,141 122,175 7,770 (1) ‘Adjusted EBITDA’ is a non-U.S. GAAP measure. It represents cash receipts from operating activities before net interest and capital payments.