SFL · SFL Corporation Ltd.

SFL Corporation Ltd. delivered a strong Q1 2026 performance with net income of $26.1 million, reversing a $31.9 million loss from Q1 2025. The turnaround was primarily driven by a $11.5 million gain on the sale of vessel SFL Thelon, which generated net proceeds of $48.3 million, alongside the absence of a $34.1 million vessel impairment charge recorded in the prior year. Operating revenues declined to $174.5 million from $186.7 million, reflecting lower time charter revenues of $133.8 million versus $156.5 million, partially offset by higher voyage charter and pool revenues at $14.7 million. Operating expenses decreased significantly to $129.6 million from $176.1 million, with vessel and rig operating expenses down to $67.6 million and depreciation at $54.5 million. Interest expense improved to $38.1 million from $46.2 million, contributing to income before taxes of $26.7 million. Comprehensive income reached $28.8 million, bolstered by $2.7 million in other comprehensive income from hedging instruments. Balance sheet remains solid with total assets at $3.56 billion and stockholders' equity at $965 million, though cash declined to $128 million amid debt repayments of $220 million net of $150 million proceeds. Operating cash flow of $34.1 million supported ongoing operations, with no share repurchases but dividends of $26.6 million declared.