New York, NY – SFL Corporation (NYSE: SFL) is a well-established shipping company with a diverse fleet of 78 vessels operating in various sectors, including cargo containers, car transports, and deep-water drilling. The company’s strong foundation built on long-term contracts has enabled it to maintain a consistent dividend payment for almost two decades, with recent increases in the first and second quarters.

Revenue growth across multiple fronts supports the recent dividend raises, including enhanced day rates for the deep water drilling vessel Hercules and a promising offshore drilling market. The company’s strategic acquisitions, such as three new LR2 tanker vessels and two LNG dual-fuel chemical carriers, are expected to further contribute to revenue growth. With the addition of a new car carrier vessel and multiple contract extensions in the container fleet, SFL is well-positioned for continued dividend growth and increased share value.

In the offshore drilling market, SFL’s Linus and Hercules vessels play a crucial role in generating revenue for the company. Recent contract renewals and adjustments are expected to drive a 3% increase in revenue in the third and fourth quarters. Despite anticipated challenges in the second quarter due to vessel relocations and maintenance activities, strong performance is projected for the latter part of the year.

Looking ahead, uncertainties exist around the future employment of the Hercules vessel beyond the current contract, highlighting the importance of strategic planning and market monitoring. The company’s CEO, Ole Hjertaker, remains optimistic about opportunities in the market, emphasizing the value of SFL’s assets in a competitive environment.

The tanker segment continues to show growth potential for SFL, with the addition of new LR2 vessels and chemical carriers under long-term contracts. While securing vessels to long-term contracts may limit short-term earnings potential, it provides stability and mitigates risks in a volatile market. The company’s proactive approach in securing vessels and contracts positions it well for future revenue growth and operational success.

As SFL continues to expand its fleet and secure long-term contracts, the company’s financial outlook remains positive. Despite an increase in debt to finance new acquisitions, the company’s cash flow generation and commitment to dividends support its growth strategy. Looking ahead, investors can expect to see further dividend increases and capital investments as SFL navigates the evolving maritime industry landscape.