SFL Corporation declared its 90th consecutive quarterly dividend in the second quarter of 2026, extending a distribution record dating back to the company’s New York Stock Exchange listing in 2004.
The board declared a quarterly dividend of $0.22 per share.
SFL has now paid a dividend in every quarter since becoming publicly traded, reflecting the company’s long-standing focus on generating recurring cash flow through a diversified maritime asset portfolio and long-term charter contracts.
Second-quarter operating revenue reached $201 million.
Adjusted EBITDA totaled $130 million, including approximately $8 million contributed by associated companies.
Reported net income was $34 million, or $0.25 per share.
The quarter benefited from particularly strong tanker-market exposure.
SFL highlighted the performance of two Suezmax tankers operating in the spot market, where stronger freight conditions supported earnings during the period.
Spot-market exposure can create greater earnings volatility than long-term charter contracts, but it can also provide meaningful upside when tanker rates strengthen.
For SFL, those vessels helped complement the more predictable cash flows generated by assets operating under longer-duration agreements.
The company’s broader strategy is built around balancing those two characteristics.
Long-term charters provide contracted revenue visibility and help support the dividend, while selected exposure to stronger shipping markets can create additional earnings upside.
SFL continued adding to its long-term contracted revenue base during the quarter.
The company entered into new long-term charters for the pure car and truck carrier vessels SFL Composer and SFL Conductor.
These agreements increase visibility into future revenue from the company’s car carrier fleet and reduce near-term exposure to fluctuations in spot charter rates for those vessels.
SFL also ordered four additional PCTC newbuilds in combination with long-term time-charter agreements.
Pairing new vessel investments with committed charters can reduce the commercial risk associated with ordering new ships because the vessels are expected to enter service with future employment already arranged.
That approach is consistent with SFL’s broader business model of acquiring and developing maritime assets against long-term contractual cash flows.
The newbuild orders will also increase the company’s exposure to the car carrier segment.
Demand for PCTCs is tied to global vehicle trade, including the transportation of passenger cars, commercial vehicles and increasingly electric vehicles between manufacturing and consumer markets.
Long-term charter agreements can allow shipowners to participate in that demand while creating clearer cash-flow visibility over the life of the contracts.
SFL’s fleet remains diversified across several major maritime and offshore categories.
The portfolio includes tankers, dry bulk carriers, containerships, car carriers and offshore drilling rigs.
That diversification is intended to reduce reliance on any single shipping segment.
Different maritime markets can move through very different cycles depending on vessel supply, commodity flows, trade patterns and broader economic conditions.
For example, tanker earnings can be influenced by oil production, refinery activity and changes in global trade routes, while containership markets are more closely connected to consumer goods trade and global supply chains.
Dry bulk vessels carry commodities such as iron ore, coal and grain.
Car carriers are exposed to automotive trade, while offshore drilling assets are linked more directly to energy companies’ exploration and production spending.
By maintaining exposure across these categories, SFL can potentially benefit from stronger markets in one segment while relying on contracted cash flows from others.
The company’s long-term charter portfolio remains the foundation of that strategy.
Instead of depending entirely on daily shipping rates, SFL frequently secures multi-year employment agreements for its assets.
Those contracts can provide greater predictability around revenue and cash generation, which is particularly important for a company that has maintained a quarterly dividend for more than two decades.
The 90th consecutive distribution underscores that focus.
While dividend levels can change over time depending on market conditions, capital requirements and financial performance, the consistency of the quarterly payments has remained a defining feature of SFL’s capital allocation strategy.
The company also strengthened its balance sheet and liquidity during the quarter by raising $100 million of new equity.
The additional capital provides SFL with more financial flexibility as it funds new vessel investments, evaluates further growth opportunities and manages its broader capital structure.
Raising equity can also help finance expansion without relying entirely on additional debt.
That flexibility is relevant as SFL commits capital to its newly ordered PCTCs and other growth initiatives.
Large maritime assets require significant upfront investment, and financing decisions can materially affect returns over the life of a vessel.
By combining equity capital, debt financing and long-term charter agreements, SFL seeks to structure investments around visible future cash flows.
The quarter therefore reflected both sides of the company’s business model.
Strong spot-market tanker conditions contributed to current earnings, while new long-term PCTC charters and newbuild commitments added future revenue visibility.
That combination supported another dividend declaration while positioning the company for additional contracted cash flow in future periods.
SFL’s $201 million of operating revenue and $130 million of adjusted EBITDA also demonstrate the scale of cash generation across its diversified portfolio.
The approximately $8 million of adjusted EBITDA from associated companies provides an additional contribution beyond the assets directly consolidated within the business.
Net income of $34 million, or $0.25 per share, exceeded the $0.22-per-share quarterly dividend on a reported earnings basis for the period.
Dividend sustainability, however, is ultimately influenced by more than quarterly accounting earnings.
SFL’s ability to maintain distributions depends on operating cash flow, charter coverage, financing requirements, vessel investments and conditions across the maritime markets in which it operates.
The company has historically emphasized contracted revenues as an important support for shareholder distributions.
Its continued expansion of the car carrier business illustrates that approach.
By ordering four additional vessels alongside long-term charter commitments, SFL is adding assets while seeking to secure future utilization and cash generation before delivery.
Meanwhile, the strong contribution from the two spot-market Suezmax tankers demonstrates the potential upside available when market rates move favorably.
That combination of contracted income and selective market exposure remains central to SFL’s strategy.
With its 90th consecutive quarterly dividend now declared, SFL continues a cash distribution record extending back to 2004 while investing in fleet growth and maintaining exposure to multiple shipping and offshore markets.
The company’s second-quarter results were supported by strong tanker conditions, continued chartering activity and a diversified asset base, while the $100 million equity raise provides additional capital for future investments.
As the newly ordered PCTCs are developed and existing vessels begin new long-term contracts, SFL is seeking to increase future revenue visibility while preserving the diversified cash-flow profile that has underpinned its dividend strategy for more than two decades.
