Shipping company SFL beats Q2 profit estimates, cuts dividend
Overview
SFL Q2 net income of $1.5 mln beats analyst expectations, per LSEG data
Adjusted EBITDA of $104 mln misses analyst estimates, per LSEG data
Company says sold older vessels, increasing capital but reducing near-term cash flow
SFL lowers dividend to $0.20 per share, from $0.27 per share in Q1, reflecting cash flow changes
Outlook
Company sees market uncertainty impacting near-term results due to oil price volatility
SFL optimistic about future employment for legacy drilling rig Hercules
Company increasing capital for new investments by selling vessels
Result Drivers
FLEET RENEWAL - SFL sold and redelivered older vessels, increasing available capital but reducing near-term cash flow
CHARTER EXTENSIONS - Five-year time charter extension for three container vessels added $225 mln to backlog
DRILLING RIG CHALLENGES - Market uncertainty and oil price volatility delayed new employment opportunities for the Hercules rig
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS | $0.01 | ||
Q2 Net Income | Beat | $1.50 mln | -$2.29 mln (2 Analysts) |
Q2 Adjusted EBITDA | Miss | $104 mln | $110.30 mln (2 Analysts) |
Q2 Dividend | $0.2 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for SFL Corporation Ltd is $11.40, about 19.9% above its August 18 closing price of $9.13
The stock recently traded at 100 times the next 12-month earnings vs. a P/E of 88 three months ago
Press Release: