John Fredriksen-controlled SFL Corp is expecting to expand its fleet further amid "challenging" banking conditions for shipping companies.
The New York-listed sale-and-leaseback specialist sees opportunities for growth following its transition to containership and bulker ownership over the last decade, reducing its exposure to tankers and offshore vessels.
Chief executive Ole Hjertaker said: "We believe the combination of a challenging banking market for many players and attractive asset prices will create significant opportunities for SFL in finding investment opportunities."
Net profit recovered to $31.5m in the first quarter, against a loss of $165.2m in the fourth quarter of 2020, when it took a vessel impairment hit of $253m.
Revenue dipped to $109m from $115m over the same period.
Dividend maintained
The company declared its 69th consecutive quarterly dividend of $0.15 per share.
The fixed-rate charter backlog for the 84 vessels stood at $2.4bn as of 31 March.
The company said it remains committed to a "conservative profile" with long-term charters.
In April, the company said it had ordered two 7,000-ceu car carriers, backed by charters to an unnamed European car maker for over 10 years in a deal worth $200m.
The charterer was revealed as Volkswagen in its first-quarter report.
Estimates exceeded
Jefferies analyst Randy Giveans said earnings comfortably beat the investment bank's estimates due to lower than expected vessel operating, admin and interest expense costs.
He raised earnings estimates for 2021 and 2022, based on the company's open handysize bulkers being secured at daily spot rates of $14,500 this year and $9,000 next year.
