SFL Corporation Ltd. (SFL): History, Ownership, Mission, How It Works & Makes Money

How does SFL Corporation Ltd., a diversified maritime asset owner, manage to deliver its 87th consecutive quarterly dividend while navigating the volatile global shipping market?

As of late 2025, their strategy is clear: a massive fixed-rate charter backlog of approximately $4 billion provides exceptional revenue visibility, underpinning their Q3 2025 operating revenues of $178 million.

This stability comes from a unique sale-and-leaseback model-chartering vessels and rigs on long-term contracts (time charters and bareboat charters)-which lets them focus on fleet renewal and efficiency upgrades, like the nearly $100 million invested since 2023.

If you want to understand the defintely complex mechanics behind a company built on predictable cash flow, you need to see how their diverse fleet-from tankers to car carriers-actually works and makes money.

SFL Corporation Ltd. (SFL) History

You're looking for the bedrock of SFL Corporation Ltd.-how a pure tanker company became a diversified maritime giant with a history of paying dividends, and what that means for its cash flow today. The direct takeaway is this: SFL's history is a masterclass in asset-light growth, starting with a powerful ship-owning strategy backed by a shipping magnate, which has allowed them to pay 87 consecutive quarterly dividends through Q3 2025.

Given Company's Founding Timeline

SFL's origin story is tied to a simple but powerful model: own the assets and lease them out on long-term contracts (time charters). This approach minimizes operating risk and delivers predictable cash flow, which is the whole point.

Year established

SFL Corporation Ltd. was established in 2003.

Original location

The company was originally incorporated in Hamilton, Bermuda. Its principal executive office has since moved to Oslo, Norway, but the Bermuda incorporation remains.

Founding team members

The establishment and initial strategy are closely associated with Norwegian shipping magnate John Fredriksen. While the specific initial team names are not all public, Fredriksen's influence provided the initial fleet and strategic direction, which is defintely the most important part. The current CEO, Ole B. Hjertaker, has been with the company since 2006, first as CFO and then as CEO since 2009, providing critical leadership continuity.

Initial capital/funding

Specific initial funding details from 2003 are not public, but the company's early financial structure was heavily influenced by sale and leaseback transactions. The first major capital event was the 2004 Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). For context, the company's authorized capital as of March 31, 2024, was $3,000,000, consisting of 300,000,000 common shares at a $0.01 par value each.

Given Company's Evolution Milestones

The table below tracks the critical moves that transformed SFL from a single-segment tanker owner into a diversified maritime infrastructure company with a fleet of 59 vessels as of November 2025.

Given Company's Transformative Moments

The most transformative decisions for SFL Corporation Ltd. all center on managing risk and maximizing predictable cash flow-a critical strategy in the cyclical shipping industry. The shift from a pure tanker owner to a diversified asset base was the single biggest move. You can't rely on one market in this business.

• The Diversification Mandate: The move in 2006-2007 to acquire container vessels, bulkers, and rigs was a calculated hedge against sector-specific downturns. This is why the company maintains a substantial fixed-rate charter backlog with a weighted average tenor of close to 7 years, providing clear revenue visibility.
• The Asset-Rotation Strategy: The company consistently executes sale and leaseback deals and sells older, less efficient vessels, like the sales for over $200 million in Q2 2025. This keeps the fleet modern and generates capital for new investments, such as the five-year time charter extension secured with Maersk for three container vessels in Q2 2025, adding approximately $225 million to the backlog.
• The Dividend as a Core Product: The commitment to paying a dividend every quarter since 2004 is a key differentiator. It shows management's focus on distributable cash flow (DCF), but it also means capital allocation decisions-like the Q2 2025 dividend adjustment to $0.20 per share-are scrutinized, especially when the legacy drilling rig, Hercules, faces challenging market conditions, impacting near-term results.

To understand how these decisions align with the company's long-term objectives, you should review the Mission Statement, Vision, & Core Values of SFL Corporation Ltd. (SFL).

SFL Corporation Ltd. (SFL) Ownership Structure

SFL Corporation Ltd. is a publicly traded company, which means its ownership is distributed among a wide range of institutional and individual investors, but a few key players still hold significant sway.

This structure, with a market capitalization of approximately $1.08 billion as of November 24, 2025, is characteristic of a firm where institutional money provides a strong, professional base, but retail investors and strategic corporate holdings also represent substantial portions of the float. You need to know who holds the shares because their interests drive the long-term strategy and dividend policy.

SFL Corporation Ltd.'s Current Status

SFL Corporation Ltd. is a public entity, listed on the New York Stock Exchange (NYSE) under the ticker SFL. Being NYSE-listed demands high transparency and adherence to strict financial reporting standards, which is defintely a plus for any investor doing due diligence.

The company operates as a maritime and offshore asset owning and chartering company, maintaining a diversified fleet of vessels that includes tankers, bulkers, container vessels, and car carriers. This public status allows the company to access deep capital markets for its asset-heavy business model, which is crucial for funding its fleet expansion and long-term charter strategy.

SFL Corporation Ltd.'s Ownership Breakdown

The company's ownership is dispersed, but institutional investors and a major corporate shareholder, DNB Bank ASA, hold key positions. This mix of professional money and strategic corporate interest is what governs the company's decision-making, especially concerning its dividend policy and asset acquisitions.

Institutional investors collectively holding nearly a quarter of the company means their votes carry significant weight in shareholder matters. For example, BlackRock, Inc. is a major holder, and their investment thesis often focuses on stable, dividend-paying companies, which aligns with SFL Corporation Ltd.'s track record of paying a dividend every quarter since 2004.

SFL Corporation Ltd.'s Leadership

The company is steered by a seasoned management team with deep experience in the maritime and finance sectors. Their long average tenure provides stability, which is a big asset in the cyclical shipping industry.

• Chief Executive Officer (CEO): Ole B. Hjertaker. He has served as CEO of SFL Management AS since July 2009, bringing over 16 years of tenure and extensive corporate and investment banking experience, particularly in the Maritime and Transportation industries.
• Chief Financial Officer (CFO): Aksel C. Olesen. He has a strong background in investment banking, having spent 12 years at Pareto Securities, including as Head of Shipping and Offshore Project Finance.
• Chief Operating Officer (COO): Trym Otto Sjølie. His background spans 25 years in the shipping industry, covering asset management, technical operations, and chartering.
• Chief Accounting Officer: Thecla Panagides. She is a member of the Institute of Chartered Accountants in England and Wales and previously served as Chief Accountant in Frontline Corporate Services.

The Board of Directors also includes key figures like Kathrine Fredriksen, who serves as President of Seatankers UK and is involved in the administration of the organization, linking the company to a major private shipping interest. This blend of operational, financial, and strategic board experience is what keeps the company focused on its long-term charter backlog, which had a weighted average tenor of close to 7 years as of November 2025. You can read more about the company's strategic direction in their Mission Statement, Vision, & Core Values of SFL Corporation Ltd. (SFL).

SFL Corporation Ltd. (SFL) Mission and Values

SFL Corporation Ltd. is fundamentally driven by a dual purpose: delivering stable, growing returns to you, the shareholder, and acting as a reliable, long-term maritime infrastructure partner for major global customers. This focus maps their financial discipline directly to their operational excellence, which is defintely a smart move.

You're looking for what truly guides SFL beyond the quarterly earnings report, and it boils down to a commitment to predictable cash flow and responsible asset management. The company's long-term strategy is built around securing a massive fixed rate charter backlog, which stood at approximately $4 billion as of November 2025, providing strong earnings visibility.

Given Company's Core Purpose

SFL's core purpose centers on maximizing shareholder distributions through a diversified, high-quality asset base. They've paid a dividend every quarter since their 2004 NYSE listing, which tells you everything about their commitment to consistent cash flow.

Official mission statement

While SFL Corporation Ltd. does not publish a single, formal mission statement, their public actions and strategy clearly define their operating principles. This is the core of what they aim to do every day:

• Provide stable and growing returns to shareholders through long-term charters.
• Act as a reliable maritime infrastructure partner for blue-chip customers.
• Maintain a diversified portfolio of maritime assets (vessels and offshore rigs).
• Operate with a commitment to safety, ethical conduct, and environmental responsibility.

For example, in Q3 2025, the company generated total operating revenues of $178 million, with approximately 86% coming from shipping and 14% from energy, showing their diversified revenue streams in action.

Vision statement

Their vision is to be a premier, adaptive provider in the global maritime and offshore sectors. This isn't just about owning ships; it's about disciplined investment and operational efficiency, which is how they manage market volatility.

• Be a premier provider of maritime and offshore assets globally.
• Deliver sustainable value through disciplined investments and operational excellence.
• Focus on maintaining a modern and efficient fleet, which includes investing nearly $100 million in fuel efficiency and cargo optimization upgrades.
• Sustain a long-term distribution capacity, supported by their portfolio of long-term fixed charters, which had a weighted remaining charter term of close to 7 years as of late 2025.

This long-term view is why they are selling older, less efficient vessels for over $200 million, simultaneously renewing the fleet and increasing available capital for new investments.

Given Company slogan/tagline

SFL Corporation Ltd. doesn't use a formal, catchy slogan, but their investor materials consistently emphasize the three pillars of their business model, essentially serving as their internal tagline:

• Growth.
• Profits.
• Dividends.

Honestly, that's a pretty clear mission statement right there for a shipping company. You can read more about their principles at Mission Statement, Vision, & Core Values of SFL Corporation Ltd. (SFL).

SFL Corporation Ltd. (SFL) How It Works

SFL Corporation Ltd. acts as a maritime infrastructure company, owning a large, diverse fleet of shipping and energy assets, and generating revenue by chartering them out, mostly on long-term contracts, to major industrial end-users. This asset-heavy, charter-focused model provides strong, predictable cash flow, which is the whole point.

SFL Corporation Ltd.'s Product/Service Portfolio

SFL Corporation Ltd.'s Operational Framework

The company's operation is pretty simple: buy high-quality, in-demand assets, secure them with long-term charters, and manage the technical side. They are an asset owner first, a chartering specialist second. For the third quarter of 2025, this model generated total operating revenues of $178 million, with about 86% coming from shipping assets and 14% from energy assets.

• Chartering Strategy: The core is the long-term time charter (a fixed daily rate for a set period), which provides earnings visibility. Their fixed rate charter backlog stands at approximately $4 billion as of November 2025, with a weighted remaining term of close to 7 years.
• Asset Management: SFL handles the technical, operational, and commercial management for the majority of its vessels under time charters. For some assets, they use bareboat charters (a financial lease) where the customer takes on all operational responsibility.
• Capital Allocation: They are constantly renewing the fleet. For example, they've invested nearly $100 million in fuel efficiency and cargo optimization upgrades, which improves performance and environmental footprint for both SFL and the charterers. This is defintely a key focus.
• Revenue Mix: The revenue stream is diversified across four major segments-container, tanker, dry bulk, and energy-which helps to smooth out the volatility you see in single-sector shipping companies.

For a deeper dive into the philosophy guiding these decisions, check out their Mission Statement, Vision, & Core Values of SFL Corporation Ltd. (SFL).

SFL Corporation Ltd.'s Strategic Advantages

SFL's success isn't just about owning ships; it's about how they structure the deals and manage the risk. The biggest advantage is the stability built into their revenue, which is why they have an 87th consecutive quarterly dividend.

• Charter Backlog Quality: The massive $4 billion fixed-rate charter backlog is largely secured with strong counterparties. Approximately 68% of this backlog is with customers who have an investment grade credit rating, significantly reducing counterparty risk.
• Fleet Diversification: By owning a mix of container ships, tankers, bulkers, car carriers, and rigs, they create a natural hedge (risk reduction) against cyclical downturns in any single market. If container rates drop, tanker rates might be up, balancing the overall earnings.
• Long-Term Contracts: Employing assets on long-term time charters-with a weighted average tenor near 7 years-insulates them from the extreme short-term rate volatility that plagues the spot market.
• Sale-Leaseback Expertise: The company is adept at structuring complex sale-type lease arrangements, which are essentially financing deals where SFL owns the asset and leases it back to the operator, securing a fixed return over the life of the charter.

SFL Corporation Ltd. (SFL) How It Makes Money

SFL Corporation Ltd. makes money primarily by owning and chartering out a diversified fleet of maritime and offshore assets-vessels and drilling rigs-to industrial end-users under long-term contracts (time charters and bareboat leases). This model secures predictable, stable cash flows, essentially acting as a maritime infrastructure landlord.

SFL Corporation Ltd.'s Revenue Breakdown

Based on the third quarter of 2025 (Q3 2025) results, the company's revenue streams are heavily weighted toward its core shipping operations, reflecting its strategic focus and the current market environment. The total operating revenues for Q3 2025 were $178 million.

The Shipping segment, which includes container vessels, dry bulk carriers, and tankers, generated approximately $154 million in charter hire in Q3 2025, demonstrating stability through its long-term contracts. The Energy segment, which includes the drilling rigs, contributed approximately $26 million in charter hire for the same period.

Business Economics

The financial engine of SFL Corporation Ltd. is built on a capital-intensive, high-fixed-cost, but high-visibility model. The key is securing long-term time charters, which pass the operational costs (like fuel and port fees) to the charterer, leaving SFL with a more predictable revenue stream and a focus on capital management.

• Charter Backlog: The company maintains a substantial fixed-rate charter backlog of approximately $4 billion, which provides strong cash-flow visibility for years to come.
• Contract Structure: The majority of the fleet is on long-term time charters, which means the company gets paid a fixed daily rate regardless of short-term market fluctuations, reducing volatility.
• Fleet Renewal: A core strategy involves continuous fleet optimization, divesting older, less-efficient assets (like certain dry bulk and container vessels) and investing in modern, fuel-efficient upgrades. The company has invested nearly $100 million in fuel efficiency and cargo upgrades, adding approximately $1.2 billion to the charter backlog.
• Energy Headwind: The decline in the Energy segment is directly linked to the legacy drilling rig Hercules, which is currently warm-stacked (idle) and not employed on a profitable charter, impacting near-term results. The other rig, Linus, remains on a long-term contract with ConocoPhillips until May 2029.

Here's the quick math: The $4 billion backlog is an enormous buffer that underpins the company's ability to sustain its dividend and invest in new assets, even when one segment, like offshore drilling, faces a temporary slump. You can read more about the investor base in Exploring SFL Corporation Ltd. (SFL) Investor Profile: Who's Buying and Why?

SFL Corporation Ltd.'s Financial Performance

The company's financial health is best assessed by looking beyond net income, which can be volatile due to asset sales and depreciation, and focusing on cash flow metrics like Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

• Q3 2025 Revenue: Total operating revenues were $178 million.
• Adjusted EBITDA: Adjusted EBITDA for Q3 2025 was $113 million, demonstrating strong operating cash generation. The Trailing Twelve Months (TTM) EBITDA stands at $473 million, reflecting the continued stability of operations.
• Net Income: Reported net income for Q3 2025 was $8.6 million, or $0.07 per share, which is a low figure relative to revenue but is common in asset-heavy industries due to high non-cash depreciation and amortization.
• Dividend Stability: SFL Corporation Ltd. declared its 87th consecutive quarterly dividend of $0.20 per share, payable in December 2025, a testament to the long-term cash flow visibility provided by the charter backlog.
• Operating Costs: Total operating expenses were $69 million in Q3 2025, a significant drop from $86 million in the previous quarter, a result of recent vessel divestments and fewer scheduled dry dockings. This shows defintely disciplined cost control.

What this estimate hides is the nine-month revenue figure of $557.5 million for the period ended September 30, 2025, which is a decline from $675.3 million in the same period of 2024, largely due to the drilling segment's challenges. Still, the core shipping fleet is performing well, and the long-term contracts provide resilience against market volatility.

SFL Corporation Ltd. (SFL) Market Position & Future Outlook

SFL Corporation Ltd. is strategically positioned as a diversified maritime infrastructure company, leveraging a significant fixed-rate charter backlog to provide strong earnings visibility. The company's future outlook is one of cautious optimization, balancing a robust long-term contract base against the near-term drag from its offshore energy segment and high financial leverage.

The core strategy is simple: own modern, efficient assets and charter them out on long-term bareboat or time charters (a financial lease structure), which is why the company has maintained 87 consecutive quarterly dividends through Q3 2025. If you are looking at the company, you need to understand this lease-finance model first. Exploring SFL Corporation Ltd. (SFL) Investor Profile: Who's Buying and Why?

Competitive Landscape

In the fragmented global shipping market, SFL does not dominate any single segment, but its diversification across container, dry bulk, and tanker vessels is its hedge. Here's the quick math on market standing, using market capitalization as a proxy for relative size among key peers as of November 2025:

To be fair, SFL's market capitalization of approximately $1.19 Billion as of November 2025 is smaller than pure-play tanker giants like Frontline, but its diversified fleet and long-term contracts provide stability that pure-play peers often lack.

Opportunities & Challenges

The company's near-term trajectory is defined by its fleet renewal program and the persistent challenge in the offshore sector. You should map these factors to your investment horizon.

The decline in 2025 revenue is defintely a headwind, mostly driven by the drop in drilling contract revenues, so the fleet optimization strategy is crucial to offset this.

Industry Position

SFL Corporation Ltd. has successfully transitioned from a vessel financing provider to a maritime infrastructure company, a key distinction in the industry. This strategy means SFL is more insulated from the volatile spot rates (short-term charter rates) that affect peers like Frontline or Scorpio Tankers. Instead, SFL focuses on long-term, fixed-rate cash flows from investment-grade customers.

• Maintain a high percentage of charter backlog with investment-grade counterparties, providing credit quality assurance.
• Focus on selling older, less-efficient assets while investing in modern, fuel-efficient vessels to meet new environmental regulations (like the Carbon Intensity Indicator, or CII).
• The fleet is highly diversified, including 18 tankers, 15 dry bulk carriers, and 29 container vessels as of late 2024, which spreads cyclical risk across multiple shipping segments.

The company is essentially a maritime landlord, and its commitment to fleet upgrades-like LNG dual-fuel capabilities on new container vessels-future-proofs its asset base and improves its competitive standing for years to come.