Slide 1: SFL Corporation Ltd. Q2 2020 presentation
SFL Corporation Ltd. Q2 2020 presentation August 18, 2020 1
Slide 2: Forward Looking Statements
Forward Looking Statements 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 re
Slide 3: Q2 2020 Highlights
Q2 2020 Highlights DIVIDEND • 66th consecutive quarterly dividend $0.25/share • 10.5% dividend yield(1) CHARTER HIRE(2) • More than 90% from long term charters $158m • Adjusted EBITDA(3) of $121m LIQUIDITY • $152m of cash at quarter end, excl. $15m in 100% owned associates $152m • $35m of marketable
Slide 4: Recent Events
Recent Events ACQUISITION OF • Attractive acquisition price and underlying sub charter to oil major NEW VLCC • Charter backlog increase of ~$60m EXTENSION OF • Seven vessels extended by an average of four years CHARTERS • Added backlog of ~$38m • Purchase options declared on 2x VLCCs with delivery i
Slide 5: Strong Focus On Mitigating Covid-19 Impact
Strong Focus On Mitigating Covid-19 Impact • Maintaining a continuous focus on operational safety with a significant number of proactive measures to ensure health and safety for crew on board vessels and onshore employees • No material disruptions to operations in Q2 apart from some dry docking dela
Slide 6: The SFL Portfolio
The SFL Portfolio CURRENT FLEET CONTRACTED REVENUE(1) Contract duration(2) 50 Liners 7.7 years 8% 22 Dry bulk 7.5 years 10 Tankers 5.7 years 25% $3.4bn 55% 3 Offshore 6.6 years 13% CHARTER HIRE Q2 2020(3) Bareboat charter 36% 64% Liners Dry bulk Offshore Tankers Time charter 1) As of June 30, 2020 a
Slide 7: SFL Operational Performance
SFL Operational Performance ADJUSTED EBITDA Q2 2020 BREAKDOWN(1) In millions $25 -$41 $4 $26 $27 $158 $121 $80 Liner Tankers Dry bulk Offshore Gross charter Voyage, Other income Adj. EBITDA hire (inc. operating and profit share) G&A expenses 1) Pro-forma illustration of cash flow is not as accounted
Slide 8: Income Statement
Income Statement (in thousands of $ except per share data) Three months ended Jun 30, 2020 Mar 31, 2020 Q2 charter hire • $158 million, including 100% Charter revenues - operating lease 94,427 96,546 owned associates and revenue Charter revenues - sales-type, direct financing and leaseback assets (n
Slide 9: Balance Sheet
Balance Sheet (in thousands of $) Jun 30, 2020 Mar 31, 2020 Cash and cash equivalents ASSETS Short term • $152m, excluding $15m of Cash and cash equivalents 152,124 206,474 cash in 100% owned associates Restricted cash 7,994 11,467 Investment in marketable securities 35,320 60,231 • $8m of restricte
Slide 10: Q2 2020 Summary
Q2 2020 Summary Uplift from profit share $0.25 $152m Dividend per Cash and cash share equivalents $3.4bn fixed revenue backlog Stable 66th revenues in consecutive quarterly volatile dividend markets 10