Slide 1: SFL Corporation Ltd. Q1 2020 presentation
SFL Corporation Ltd. Q1 2020 presentation May 20, 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: Q1 2020 Highlights
Q1 2020 Highlights DIVIDEND • 65th consecutive quarterly dividend $0.25/share • 10.3% dividend yield(1) CHARTER HIRE(2) • ~90% from long term charters $161m • Adjusted EBITDA(3) of $120m LIQUIDITY • Cash of $217m (incl. associates) at quarter end $217m • All material 2020 financing maturities addres
Slide 4: Recent Events
Recent Events • Upcoming 2020 NOK bond maturity refinanced in January FINANCING • New loan facilities of >$200m at a blended all-in cost of <2% • VLCC Front Hakata sold for net proceeds of ~$30m FRONTLINE • $6m of profit share in Q1 with strong visibility until Q4 OFFSHORE • Exit from the OSV segmen
Slide 5: Covid-19 - Impact For SFL
Covid-19 - Impact For SFL • SFL is 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 business interruptions in Q1 resulting from the Covid-19 pandemic • Some d
Slide 6: The SFL Portfolio
The SFL Portfolio CURRENT FLEET CONTRACTED REVENUE(1) Contract duration(2) 50 Liners 7.9 years 22 Dry bulk 7.6 years 9% 12 Tankers 5.6 years 24% $3.6bn 54% 3 Offshore 6.8 years 13% CHARTER HIRE Q1 2020(3) Bareboat charter 35% 65% Liners Dry bulk Offshore Tankers Time charter 1) As of March 31, 2020
Slide 7: Asset Financing Structure Mitigates "Black Swan" Risk
Asset Financing Structure Mitigates “Black Swan” Risk SFL Corporation Ltd. (NYSE:SFL) Vessel owning subsidiaries FULLY GUARANTEED FACILITIES PARTIALLY GUARANTEED FACILTIES NON-RECOURSE FACILITIES 2x VLCC TANKERS 2x SUEZMAX TANKERS 2x SUPRAMAX BULKERS 3x SUPRAMAX BULKERS 2x 19,200 TEU LINERS 2x 19,40
Slide 8: Managing Risk In A Cyclical Offshore Market
Managing Risk In A Cyclical Offshore Market CHARTER STRUCTURE FINANCING STRUCTURE NET CASH FLOW PER SHARE(1) Q1 2020 figures Part of debt guaranteed by SFL Corp. • Harsh Environment J/U Dec-16 $356m • 2014-built • BB to Seadrill to 2029 • Contract with ConocoPhillips Paid down $132m -37% $0.03 until
Slide 9: SFL Operational Performance
SFL Operational Performance ADJUSTED EBITDA Q1 2020 BREAKDOWN(1) In millions $26 -$44 $26 $3 $30 $161 $120 $78 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 10: Income Statement
Income Statement (in thousands of $ except per share data) Three months ended Mar 31, 2020 Dec 31, 2019 Q1 charter hire • $161 million, including 100% Charter revenues - operating lease 96,546 96,385 owned associates and revenue Charter revenues - finance lease (net of charter hire treated as Repaym
Slide 11: Balance Sheet
Balance Sheet (in thousands of $) Mar 31, 2020 Dec 31, 2019 Cash and cash equivalents ASSETS Short term • $217m, including cash at 100% Cash and cash equivalents 206,474 199,521 owned associates Restricted cash 11,467 3,495 Investment in marketable securities 60,231 74,079 Amount due from related pa
Slide 12: Strong Liquidity, Limited Capex And Unique Access to Capital
Strong Liquidity, Limited Capex And Unique Access to Capital ROBUST LIQUIDITY CONTINUOUSLY DIVERSIFYING SOURCES OF CAPITAL SFL lender group by region CASH AND CASH EQUIVALENTS $217m NET MARKETABLE SECURITIES(1) $34m 22% 31% 38% LIMITED OUTSTANDING CAPEX 2010 10% 2020 60% VLCC acquisition (net of $50
Slide 13: Q1 2020 Summary
Q1 2020 Summary Uplift from profit share $0.25 $217m Dividend per Cash and cash share equivalents $3.6bn fixed revenue backlog Limited 65th corporate guarantees consecutive quarterly protects dividend downside 13