Preliminary Q2 2020 results and quarterly cash dividend of $0.25 per share

Hamilton, Bermuda, August 18, 2020. SFL Corporation Ltd. (“SFL” or the “Company”) today announced its preliminary financial results for the quarter ended June 30, 2020.

Highlights

• 66^th consecutive quarterly dividend declared, $0.25 per share
• Operating revenue of $118 million, and net income of $12 million in the second quarter, after approximately $15.8 million in non-recurring and/or non-cash negative adjustments
• Received charter hire¹ of approximately $158 million in the quarter from the Company’s vessels and rigs, including $5.2 million of profit share
• Adjusted EBITDA² of $95.9 million from consolidated subsidiaries, plus an additional $25.1 million adjusted EBITDA² from wholly owned non-consolidated subsidiaries
• Increased the fixed rate charter backlog by approximately $95 million, including charter extensions for seven container vessels and a vessel acquisition
• Redelivered two VLCCs to Hunter Group on August 18, 2020

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

“The Covid-19 outbreak has caused increased volatility in many markets, and we are pleased to see that our business operations have not been materially impacted and all our customers are paying charter hire on time. We are careful and selective in our investments, and with a diversified fleet of assets our aim is to mitigate volatility by timing our investments in each sector through the market cycles.

Our financing structure and consistent ability to access attractively priced capital has allowed us to continuously renew our fleet and pursue profitable growth opportunities. As a result, more than $2.3 billion has been returned to shareholders through dividends since 2004, and we have a significant charter backlog supporting future distribution capacity”

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.25 per share. The dividend will be paid on or around September 30, to shareholders on record as of September 17, and the ex-dividend date on the New York Stock Exchange will be September 16, 2020.

August 18, 2020

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

The full report can be found in the link below and at the Company’s website www.sflcorp.com.

Questions can be directed to SFL Management AS:

Investor and Analyst Contact

Aksel C. Olesen, Chief Financial Officer: +47 23114036

André Reppen, Senior Vice President and Chief Treasurer: +47 23114055

Media Contact

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About SFL

SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website www.sflcorp.com.

Forward Looking Statements

This press release 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 records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand resulting from changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

1 Charter hire represents the amounts billable in the period by the Company and its 100% owned associates for chartering its vessels. This is mainly the contracted daily rate multiplied by the number of chargeable days plus any additional billable income including profit share. Long term charter hire relates to contracts undertaken for a period greater than one year. Short term charter hire relates to contracts undertaken for a period less than one year, including voyage charters.
2 ‘Adjusted EBITDA’ is a non-GAAP measure. It represents cash receipts from operating activities before net interest and capital payments.

Attachment

• SFL - Second Quarter 2020 Results