Slide 1: SFL Corporation Ltd. Q3 2020 presentation
SFL Corporation Ltd. Q3 2020 presentation November 12, 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: Q3 2020 Highlights
Q3 2020 Highlights DIVIDEND • 67th consecutive quarterly dividend $0.15/share • 7.8% dividend yield(1) CHARTER HIRE(2) • More than 90% from long term charters $157m • Adjusted EBITDA(3) of $117m LIQUIDITY • $206m of cash at quarter end, excl. $22m in 100% owned associates $206m • $33m of marketable
Slide 4: Recent Events
Recent Events PROFIT SHARE • $4.8m from VLCCs CONTRIBUTION • $0.8m from fuel savings on container vessels CAR CARRIER • Improved market fundamentals through Q3 CHARTERS • Two previously idle vessels commenced new charters in Q4 REDUCING • Repurchase of the West Taurus bank debt at a discount RIG DEB
Slide 5: The SFL Shipping Portfolio (excl. Offshore Assets)
The SFL Shipping Portfolio (excl. Offshore Assets) CURRENT FLEET CONTRACTED REVENUE, SHIPPING(1) Contract duration(2) 50 Liners 7.6 years 22 Dry bulk 7.3 years 9% 9 Tankers 5.6 years 17% CHARTER HIRE Q3 2020(3) $2.4bn Bareboat charter 74% 25% Time charter 75% Liners Dry bulk Tankers 1) As of Septemb
Slide 6: SFL Offshore Portfolio
SFL Offshore Portfolio RIGS AND CHARTER STRUCTURE DEBT PER RIG(2) FINANCING STATUS(2) Guaranteed by SFL Corp. • Harsh Environment (“HE”) J/U Dec-16 $356m • 2014-built • LIBOR + 2.75% • BB to Seadrill until 2029(1) Paid down $137m -38% • Maturity Q2 2023 • On contract with an oil major • Guaranteed b
Slide 7: SFL Operational Performance
SFL Operational Performance ADJUSTED EBITDA Q3 2020 BREAKDOWN(1) In millions $24 ($42) $2 $28 $24 $157 $117 $80 Liner Tankers Dry bulk Offshore Gross charter Operating and Other income Adj. EBITDA hire (incl. G&A expenses profit share) 1) Pro-forma illustration of cash flow is not as accounted for u
Slide 8: Income Statement
Income Statement (in thousands of $ except per share data) Three months ended Sep 30, 2020 Jun 30, 2020 Q3 charter hire • $157 million, including 100% Charter revenues - operating lease 90,740 94,427 owned associates and revenue Charter revenues - sales-type, direct financing and leaseback assets (n
Slide 9: Balance Sheet
Balance Sheet (in thousands of $) Sep 30, 2020 Jun 30, 2020 Cash and cash equivalents ASSETS Short term • $206m at quarter end, Cash and cash equivalents 205,814 152,124 excluding $22m of cash in non- Restricted cash 8,628 7,994 32,968 35,320 consolidated rig-owning Investment in marketable securiti
Slide 10: Q3 2020 Summary
Q3 2020 Summary Uplift from profit share $0.15 $206m Dividend per Cash and cash share equivalents $2.4bn fixed revenue backlog from shipping Stable 67th revenues in consecutive quarterly volatile dividend markets 10