SFL Corp has raised its quarterly dividend as it reported a profitable end to the year supported by a huge contract backlog.
The fourth-quarter dividend is the 80th consecutive dividend payment since the John Fredriksen-backed company launched in 2004.
Shareholders will collect a payout of $0.26 per share for the period, up by one cent on the previous distribution.
“We are very proud to celebrate 20 years of profitability and dividends. It should come as no surprise that we increase the dividend again,” chief executive Ole Hjertaker said in a presentation on LinkedIn.
The dividend represents a yield of 9%.
“We are now celebrating our 80th dividend and have a unique profile as a maritime infrastructure company with a diversified fleet. This has enabled us to be profitable from operations and pay dividends every single quarter since inception in 2004, which is quite unique in our industry,” Hjertaker said.
Earnings per share for the fourth quarter was $0.25 per share compared with $0.23 in the third quarter.
SFL posted fourth-quarter operating revenues of $209.6m compared with $204.9m in the third quarter.
The company has taken delivery of new dual-fuel car carriers that will have full cash flow effect from the second quarter. The company envisages a “considerable boost” from the car carriers.
“And with all of our car carrier newbuildings delivered by the end of this quarter, we expect to continue increasing our charter revenues in 2024,” Hjertaker said.
The shipowner’s backlog was $3.2bn.
“And we believe there is significant value embedded in our fleet beyond our current charter backlog, illustrated by the recent charter extensions for our car carriers SFL Composer and SFL Conductor at significantly higher charter rates than before,” Hjertaker said.
“Owning modern high quality maritime assets in the next decade will be beneficial for SFL shareholders as we continue to build the company and our long-term distribution capacity.”
