SFL Corporation Ltd. (SFL): Business Model Canvas [Dec-2025 Updated]

You're digging into SFL Corporation Ltd. (SFL), and honestly, what you find is a masterclass in maritime infrastructure leasing designed for cash flow predictability, not just asset ownership. As someone who's spent two decades mapping these capital-intensive plays, I see a business model that locks in long-term value, evidenced by their nearly $4.0 billion fixed-rate charter backlog as of Q3 2025 across tankers, bulkers, and containers. It's asset-backed stability in a volatile shipping world. So, let's peel back the layers of their Business Model Canvas to see precisely how they manage that massive fleet, service their debt, and fund the remaining $850 million in newbuild capital expenditures you see on their books.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships SFL Corporation Ltd. relies on to keep its diverse fleet generating contracted revenue. It's all about locking in assets with strong counterparties and securing the capital to build the next generation of ships.

Major commercial banks and credit facilities for vessel financing

SFL Corporation Ltd. actively manages its debt profile, using credit facilities to fund new assets and prepay older debt to optimize its balance sheet. As of the second quarter of 2025, the company had a specific liquidity position available.

Here are the recent financing activities reported for Q2 2025:

Financing Activity	Asset Type	Amount Reported
New Financing Arrangements	Two Car Carriers (SFL Conductor and SFL Composer)	Approximately SEK 84,000,000
Debt Facilities Prepaid	General Debt Facilities	Approximately $95,000,000
Debt Facilities Prepaid	Two kamsarmax vessels and eight capesize vessels	$76,000,000 in aggregate

As of June 30, 2025, SFL Corporation Ltd. reported available liquidity:

• Cash and cash equivalents on balance sheet: Approximately $156,000,000.
• Available under undrawn credit lines: An additional $49,000,000.
• Total available liquidity: Approximately $205,000,000.

Shipyards for newbuilding programs, like the five 16,800 TEU container vessels

SFL Corporation Ltd. is investing heavily in fleet renewal, specifically with large, dual-fuel container vessels. These newbuilds are scheduled for delivery in 2028.

The key details on this newbuilding program are:

• Number of vessels ordered: Five.
• Vessel capacity: 16,800 TEU each.
• Propulsion: LNG dual-fuel.
• Scheduled delivery year: 2028.
• Aggregate construction cost: Approximately $1 billion.
• Remaining capital expenditure as of Q2 2025: Approximately $850,000,000.

Shipbuilding sources indicated that SFL Corporation Ltd. ordered these LNG dual-fuel containerships from China's New Times Shipbuilding.

Key charterers like Maersk for long-term contract extensions

Securing long-term, high-quality charters is central to SFL Corporation Ltd.'s strategy, providing visibility for its dividend capacity. Maersk is a significant counterparty in the container segment.

Recent charter extensions with Maersk include:

Vessel Size/Type	Charter Term Extension	Backlog Addition	Backlog Period
Three 9,500 TEU container vessels	Five-year extension	Approximately $225,000,000	From 2026 through 2031
Four 8,700 TEU container vessels (upgraded to 9,500 TEU)	New 5-year time charters	Approximately $240,000,000	Expiring in 2030

SFL Corporation Ltd.'s container fleet of 30 vessels (including five on order as of Q2 2025) is fixed to top-tier liners, specifically naming MSC, Maersk, and Hapag-Lloyd.

The overall fixed rate charter backlog as of Q3 2025 stood at $4 billion.

Technical and commercial managers for day-to-day vessel operations

For the majority of its fleet, SFL Corporation Ltd. performs the management functions internally rather than relying on external third parties for day-to-day operations.

• The entity responsible for management is SFL Management AS.
• This entity handles the technical, operational, and commercial management for most ships on time or trip charters.

Insurance and classification societies for fleet compliance

SFL Corporation Ltd. requires partnerships with insurance providers and classification societies to ensure its fleet of tankers, bulkers, container vessels, car carriers, and energy assets maintains compliance and coverage. Specific names of these partners and associated financial figures for 2025 were not detailed in the latest available public reports.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Key Activities

You're looking at the core engine driving SFL Corporation Ltd.'s value, which centers on managing a large, chartered-out fleet. This involves constant buying, selling, and upgrading to keep the asset base modern and profitable. It's a hands-on approach to maritime infrastructure ownership.

Strategic acquisition and divestment of maritime assets

SFL Corporation Ltd. actively manages its fleet composition, shedding older, less efficient tonnage to free up capital for newer assets. This renewal strategy is key. For instance, in the period leading up to and including Q3 2025, the company exited its exposure to older supramax dry bulk tonnage, with expected proceeds around $45 million from sales.

The asset rotation is clear from specific sales. The 2005-built 1,700 teu container vessel, Asian Ace, was sold, generating a gain of approximately $4.3 million. Furthermore, SFL redelivered eight older capesize bulkers to Golden Ocean after a pre-agreed charter arrangement, with Golden Ocean paying $115 million in July 2025 for those debt-free vessels. These divestments help lower the average fleet age to under 10 years.

Securing and managing long-term time and bareboat charters

The stability of SFL Corporation Ltd.'s earnings comes directly from locking in long-term contracts with high-quality customers. As of September 30, 2025, the fixed-rate charter backlog stood at approximately $4 billion. This backlog provides strong cash-flow visibility, supporting the long-term dividend distribution capacity.

A significant portion of this backlog, about two-thirds, is contracted with investment-grade counterparties. You can see this in action with the container segment, which is entirely fixed to top-tier liners like Maersk, Hapag-Lloyd, and MSC. For example, five-year charter extensions for three 9,500 teu container ships with Maersk, starting in 2026, added around $225 million to the contracted backlog. The weighted remaining charter term across the portfolio was 6.5 years as of Q3 2025.

Continuous fleet optimization and fuel-efficiency upgrades

SFL Corporation Ltd. doesn't just buy and charter; it invests heavily in making its existing assets better performers. Since 2023, the company has invested nearly $100 million in vessel efficiency upgrades, focusing on fuel efficiency and cargo optimization. These initiatives are not just for show; they directly contribute to the contract book, adding approximately $1.2 billion to the fixed-rate charter backlog.

The focus includes deploying sustainable technologies, such as investing in LNG dual-fuel capabilities. The company now has 11 LNG-capable vessels, with five LNG newbuilds on order.

Disciplined capital allocation and debt management

Capital allocation balances shareholder returns with necessary fleet investment. SFL Corporation Ltd. declared its 87th consecutive quarterly dividend at $0.20 per share for Q3 2025. This commitment to shareholder returns is a core tenet, though the dividend level reflects a cautious approach amid market dynamics.

On the investment side, the company has significant capital expenditures planned for five large container newbuilds, totaling approximately $850 million remaining capex, with deliveries expected through 2028. These expenditures are expected to be funded through financing arrangements. Liquidity remained solid at the end of Q3 2025, with $278 million in cash and cash equivalents, plus an additional $44 million in undrawn credit lines.

Maintaining high fleet utilization

The operational goal is keeping assets employed on profitable charters. While the overall fleet utilization figure you mentioned was 98.7%, the Q3 2025 results showed segment-specific performance. The tanker and car carrier fleets both achieved 100 per cent utilization during the quarter. The dry bulk fleet recorded 98.5 per cent utilization. The container fleet posted a utilization rate of 93 per cent, and the energy (rig) fleet was at 50 per cent utilization, largely due to the legacy drilling rig Hercules remaining warm-stacked.

Here's a quick look at the Q3 2025 financial and operational snapshot:

Metric	Amount / Rate
Total Operating Revenue	$178 million
Adjusted EBITDA	$113 million
Net Income	$8.6 million
Quarterly Dividend Declared	$0.20 per share
Fixed-Rate Charter Backlog (as of 9/30/2025)	$4.0 billion
Cash & Equivalents (End of Q3 2025)	$278 million

The charter hire breakdown for the quarter showed the shipping segments were the primary revenue drivers:

• Container Vessels Charter Hire: $82 million
• Tanker Segment Charter Hire: $44 million
• Car Carrier Fleet Charter Hire: $23 million
• Dry Bulk Carriers Charter Hire: Approximately $19.0 million

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Key Resources

You're looking at the core assets SFL Corporation Ltd. controls right now, the things that actually generate the revenue and provide the stability in this volatile sector. Honestly, it's all about the long-term contracts tied to a modern, efficient asset base.

The financial backbone right now is the contracted revenue stream. That backlog provides serious cash-flow visibility, which is rare in shipping.

Financial Metric	Amount (as of Q3 2025)	Detail
Fixed-Rate Charter Backlog	$4.0 billion	Contracted revenues providing future earnings visibility.
Total Liquidity	$320 million	Includes cash and undrawn credit facilities.
Cash and Cash Equivalents	$278 million	Reported as of September 30, 2025.
Undrawn Credit Lines	$44 million	Part of the total liquidity figure.
Vessel Upgrade Investment (Since 2023)	Nearly $100 million	Invested in fuel efficiency and cargo optimization upgrades.

The fleet itself is the primary physical resource, built on diversification across maritime and energy sectors. It's a mix designed to weather different market cycles.

• Tanker vessels
• Bulkers
• Container vessels
• Car carriers
• Offshore drilling rigs (one rig, Hercules, is currently warm-stacked)

SFL Corporation Ltd. is actively managing this asset base. They are cycling out older tonnage while simultaneously committing capital to future capacity. They have five 16,800 TEU container vessels under construction for 2028 delivery, backed by ten-year charters.

The human capital is also a key resource. You have an experienced management team running SFL Management AS, which handles the maritime asset leasing operations.

To be fair, two-thirds of that $4.0 billion charter backlog is contracted to investment-grade counterparties, which de-risks the revenue stream significantly.

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Value Propositions

You're looking at the core promises SFL Corporation Ltd. makes to its customers and shareholders as of late 2025. Honestly, it boils down to locking in long-term, predictable revenue streams while constantly pruning the fleet for efficiency. That's how they support that steady dividend.

Highly predictable, stable cash flow for shareholders

The main draw here is the visibility into future cash flow, which directly supports shareholder distributions. SFL Corporation Ltd. has a long history of this commitment. You see this commitment reflected in their dividend record and the size of their contracted revenue pipeline.

• Announced its 87th consecutive quarterly cash dividend as of Q3 2025.
• The Q3 2025 quarterly dividend was $0.20 per share.
• Total distributed to shareholders since inception in 2004 reached $2.9 billion through Q2 2025.

This stability is underpinned by a substantial, contracted revenue base. Here's a quick look at the financial backbone supporting this promise:

Metric	Value (as of Q3 2025)	Value (as of Q1 2025)
Total Operating Revenues	$178 million	N/A (Q1 Charter Hire: $193.5 million)
Adjusted EBITDA	$113 million	$108.0 million (Consolidated)
Net Income (Loss)	$8.6 million	Net Loss of $31.9 million
Fixed Rate Charter Backlog	Approx. $4.0 billion	Approx. $4.2 billion
Weighted Remaining Charter Term	6.5 years	N/A

The fixed-rate charter backlog of approximately $4.0 billion as of Q3 2025 provides strong earnings visibility. That's a solid foundation for long-term planning, even with the recent net loss in Q1 2025, which was impacted by impairments.

Long-term, reliable transportation and energy infrastructure for customers

SFL Corporation Ltd. positions itself as a provider of essential maritime infrastructure, with the majority of its assets on long-term time charters to industrial end users. This means customers get reliable capacity, and SFL gets reliable income. For instance, a five-year time charter extension with Maersk in Q2 2025 added approximately $225 million to the backlog, running from 2026 through 2031.

The infrastructure is diversified across key global trade sectors:

• Q3 2025 charter hire split: 86% from shipping and 14% from energy.
• Q1 2025 data showed tanker vessels generated approx. $42.2 million in charter hire.
• Q1 2025 car carrier fleet (seven vessels) generated approx. $26.4 million in charter hire.

This strategy means SFL Corporation Ltd. is deeply embedded in the supply chains of its counterparties.

Modern, compliant vessels with lower operating costs

You can see a clear, ongoing effort to upgrade the fleet, which lowers operating costs and improves the environmental profile for customers. Since 2023, SFL Corporation Ltd. has invested nearly $100 million in fuel efficiency and cargo optimization upgrades. These upgrades directly contribute to better operational performance and have helped add to the fixed-rate charter backlog.

Fleet renewal is active; in Q2 2025, the company sold older dry bulk and container vessels for an aggregate amount of more than $200 million. They are also building out future capacity, progressing with the construction of five 16,800 teu container vessels scheduled for delivery in 2028.

Flexible sale-and-leaseback or long-term charter financing solutions

SFL Corporation Ltd. uses asset sales and capital markets to fund its strategy, moving away from high-levered financing toward long-term charter-backed assets. They actively manage the balance sheet through asset recycling. For example, in Q2 2025, they divested older vessels for over $200 million. On the capital markets side, they issued a new $150 million five-year bond in Q4 2024. Plus, they have engaged in share repurchases, such as a $10 million buyback in Q1 2025 at an average price of $7.98 per share, aiming to maximize long-term distribution capacity per share.

Risk mitigation through fleet diversification across sectors

The fleet is intentionally spread across different maritime and energy segments, which helps mitigate risks tied to any single market cycle. The fleet composition includes tanker vessels, bulkers, container vessels, car carriers, and offshore drilling rigs. While the majority of revenue comes from shipping (86% in Q3 2025), the energy segment provides a crucial diversification component (14% in Q3 2025).

However, not all assets perform equally. The legacy drilling rig Hercules remains a specific risk area, being warm stacked and incurring daily costs modeled around $75,000 to $100,000 per day when idle, though the company remains optimistic about securing new employment. The strategy involves shedding the older, spot-market exposed assets, like the dry bulk vessels impaired in Q1 2025, in defintely favor of long-term contracted, modern tonnage.

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Customer Relationships

You're looking at how SFL Corporation Ltd. keeps its revenue streams locked in, which is all about the long-term nature of their customer ties. This isn't a spot-market play for them; it's about deep, multi-year commitments.

Long-term, strategic partnerships with industrial end-users

SFL Corporation Ltd. focuses on chartering assets to first-class customers, with the majority of that customer base being large industrial end-users. This strategy is designed to provide strong earnings visibility. As of the third quarter of 2025, SFL Corporation Ltd. owned and operated 59 maritime assets across key sectors. The CEO noted that the majority of vessels and rigs are on long-term time charters to these industrial clients. This structure supports sustainable shareholder returns.

Direct negotiation and bespoke contract structuring

The core of the relationship is the long-term time charter, which means a fixed daily rate for a set period. This is where the bespoke structuring comes in, though the majority of the fleet operates under this model. The company actively manages its portfolio to ensure high-quality counterparties are secured. A significant portion of the revenue visibility comes from this contractual strength.

Here's a quick look at the asset base and the quality backing the revenue stream as of late 2025:

Fleet Segment	Number of Assets (Q3 2025)	Utilization Rate (Q3 2025)
Container Ships	30	93 per cent
Large Tankers	16	100 per cent
Car Carriers	7	100 per cent
Dry Bulk Vessels	2	98.5 per cent
Drilling Rigs	2	50 per cent

The contracted fixed-rate charter backlog for SFL Corporation Ltd. stood at approximately $4 billion as of September 30, 2025. Furthermore, approximately 67% of this backlog is with customers holding an investment-grade credit rating. This concentration of high-quality counterparties is a direct result of their relationship-focused negotiation strategy.

Dedicated investor relations for consistent dividend communication

The commitment to shareholders is a key relationship SFL Corporation Ltd. maintains. The company announced its 87th consecutive quarterly dividend for the third quarter of 2025, maintaining the payout at $0.20 per share. This unbroken streak dates back to its initial listing in 2004. To date, SFL Corporation Ltd. has returned about $2.9 billion to shareholders through these consistent quarterly distributions. The next payment was scheduled for on or around December 29, 2025, with an ex-dividend date of December 12, 2025.

High-touch, relationship-driven model for charter renewals

SFL Corporation Ltd. actively works with customers on fleet modernization, which strengthens the relationship and extends contract life. They have invested nearly $100 million in fuel efficiency and cargo optimization upgrades since 2023, often in cooperation with charterers. These initiatives contributed to adding approximately $1.2 billion to the fixed-rate charter backlog. This collaborative approach drives renewals. For example, they secured five-year charter extensions for three 9,500 teu container vessels with Maersk, adding around $225 million to the backlog, with service running through to 2031. The weighted average remaining tenor across the substantial backlog is close to 7 years.

• The fleet average age was reduced to less than 10 years following the sale of older tonnage.
• Total operating revenue for Q3 2025 was $178 million.
• Vessel charter hire contributed approximately $154 million to Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Channels

You're looking at how SFL Corporation Ltd. gets its value propositions-long-term chartered assets-to its customers and capital providers. It's a mix of direct, high-touch deals and formal market access points.

Direct negotiation with major global shipping and energy companies is the core way SFL secures its revenue visibility. This channel is evidenced by recent, significant contract renewals. For instance, SFL secured five-year time charter extensions for three of its 9,500 TEU container vessels with Maersk, starting in 2026 and running through 2031. That deal alone added approximately $225 million to the contracted backlog. The company's entire fleet, which stood at 60 wholly or partly owned vessels and newbuildings under construction as of June 30, 2025, is largely fixed out on long-term contracts. This direct engagement is how they maintain a strong charter backlog, which was reported at approximately $4.0 billion as of the third quarter of 2025.

For asset management, SFL uses ship brokers and investment banks for asset sales and acquisitions to constantly renew the fleet. This channel facilitates the divestment of older, less efficient tonnage to free up capital for modern assets. The continuous fleet renewal strategy saw the sale and redelivery of older dry bulk and container vessels for an aggregate amount of more than $200 million subsequent to the second quarter of 2025. Specifically, the company exited spot market exposure by selling older supramax tonnage, expecting proceeds of around $45 million, and redelivered eight older capesize bulkers to Golden Ocean in July for $115 million. Also, the sale of the 2005-built 1,700 TEU Asian Ace generated a gain of $4.3 million.

Accessing capital markets is managed through investor presentations and webcasts. SFL Corporation Ltd. keeps stakeholders informed through scheduled events; for example, the preliminary third quarter of 2025 results were released on Tuesday, November 11, 2025, with a conference call and webcast held at 10:00 AM (EST). The presentation materials are made available on the Investor Relations section of the website, www.sflcorp.com. Key contacts for these interactions include Espen Nilsen Gjøsund, Vice President - Investor Relations, and Aksel Olesen, Chief Financial Officer. The company maintains a history of 87 consecutive quarterly cash dividends, underscoring the reliability sought by this channel.

The final channel involves direct vessel delivery from shipyards for newbuilds, securing future revenue streams upfront. SFL is progressing with the construction of five 16,800 TEU container vessels, which have an aggregate construction cost of approximately $1 billion. These vessels are scheduled for delivery in 2028 and come with minimum 10-year time charters already agreed upon. This direct link to shipyards ensures the fleet modernization aligns perfectly with contracted future demand.

Here's a quick look at the scale of the assets and contracts flowing through these channels:

Metric	Value as of Late 2025 Data	Reporting Period
Fixed Rate Charter Backlog	$4.0 billion	Q3 2025
Total Fleet Size (Vessels + Newbuildings)	60	Q2 2025
Weighted Remaining Charter Term	6.5 years	Q3 2025
Container Newbuilds Under Construction	5 vessels	Q3 2025
Aggregate Newbuild Cost (Container)	Approx. $1 billion	Q3 2025
Recent Divestment Proceeds (Aggregate)	More than $200 million	Post Q2 2025

The strength of SFL Corporation Ltd.'s channel strategy is supported by the quality of its counterparties and the structure of its assets:

• Charter backlog with investment-grade counterparties is approximately two-thirds of the total.
• The company has declared 87 consecutive quarterly cash dividends.
• Q3 2025 Adjusted EBITDA was $113 million.
• Container fleet includes 30 vessels, with five on order.
• The company sold older bulkers to Golden Ocean for $115 million in July.

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Customer Segments

SFL Corporation Ltd. serves a diverse set of customers across various maritime and energy sectors, a diversification strategy that has evolved since its start in 2003 from a pure tanker owner to a company with investments across multiple segments. Since 2004, SFL Corporation Ltd. has increased its customer base from just one counterpart to a wide and diverse customer base.

The customer base is heavily weighted towards high-quality counterparties, with approximately 66% of the fixed rate charter backlog as of June 30, 2025, being with customers holding an investment grade credit rating. The total estimated fixed rate charter backlog was approximately $4.0 billion as of the end of the third quarter of 2025, with a weighted average tenor of close to 7 years or 6.5 years.

The customer segments are directly tied to the company's asset classes, which as of mid-2025 included an owned and managed fleet of 59 vessels.

Major global container line operators, like Maersk

• SFL Corporation Ltd. has a container fleet of 30 vessels, with five vessels on order as of Q2 2025.
• This segment generated approximately $82.3 million of charter hire in the second quarter of 2025.
• Maersk extended time charters for three 9,500 teu container vessels for five years, adding approximately $225 million to the backlog from 2026 through 2031.

Large oil and gas companies for tanker and offshore drilling assets

This group is served by the Tanker and Energy segments. In the second quarter of 2025, charter hire from the Energy segment accounted for 13% of the total charter hire received.

Asset Class	Fleet Size (as of Q2 2025)	Q2 2025 Charter Hire (USD Millions)	Key Customer/Employment Detail
Tankers (Crude, Product, Chemical)	18 vessels	$41.1 million	One product tanker on a five-year time charter to Vitol. Two chemical vessels on long-term employment to Stolt Tankers.
Energy (Drilling Rigs)	2 rigs (Hercules and Linus)	Energy segment contributed 13% of total charter hire in Q2 2025.	The rig Hercules was warm stacked in Q1 2025 and Q2 2025.

Industrial dry bulk commodity shippers

• SFL Corporation Ltd. had 14 dry bulk carriers as of Q2 2025.
• This segment generated approximately $19.0 million of gross charter hire in the second quarter of 2025.
• The company has been divesting older dry bulk vessels traded in the spot market.

Automobile manufacturers and logistics providers (car carriers)

• The car carrier fleet consisted of seven vessels as of Q2 2025.
• These vessels generated approximately $26.0 million of charter hire in the second quarter of 2025.
• All car carriers are chartered out on long term time charters.

Overall fleet deployment as of Q2 2025:

• Total Charter Hire received was $194 million.
• Shipping operations accounted for approximately 87% of charter hire.
• The total fleet size for owned and managed vessels was 60 as of June 30, 2025.

Finance: review the Q3 2025 charter hire breakdown against the Q2 2025 figures by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Cost Structure

You're looking at the major drains on SFL Corporation Ltd.'s cash flow, the costs that keep this maritime infrastructure running. Honestly, it's a capital-intensive game, and the numbers reflect that heavy investment cycle.

The future fleet build-out is a massive commitment. SFL Corporation Ltd. has $850 million remaining in capital expenditures (CapEx) earmarked for five large container newbuildings, which are expected to be delivered through 2028. These are planned to be funded through pre- and post-delivery financing arrangements. Separately, there were approximately $28 million of capital expenditures remaining on existing assets as of September 30, 2025.

Debt service is a constant, significant outflow. For the third quarter of 2025, SFL Corporation Ltd. reported ordinary loan repayments totaling $56 million. This is a direct cash cost tied to financing the asset base.

Operating expenses (OPEX) cover the day-to-day running of the fleet. For Q3 2025, total operating expenses were $69 million. This breaks down across the core segments:

• Vessel operating expenses: $48 million.
• Rig operating expenses: $21 million.

The rig segment cost structure is notable because the legacy drilling rig Hercules remained idle during the third quarter of 2025. While the specific cost for warm-stacking the Hercules drilling rig isn't itemized separately, its operating costs are included within the $21 million rig operating expenses reported for the quarter. The company is exploring strategic opportunities for the rig.

Here's a quick look at the key Q3 2025 cost components:

Cost Category	Amount (USD)	Period/Context
Remaining CapEx (Newbuilds)	$850 million	Total remaining on 5 container newbuildings
Ordinary Loan Repayments	$56 million	Q3 2025
Total Operating Expenses	$69 million	Q3 2025
Vessel Operating Expenses (OPEX)	$48 million	Q3 2025
Rig Operating Expenses (OPEX)	$21 million	Q3 2025

Also, SFL Corporation Ltd. has invested nearly $100 million in fuel efficiency and cargo optimization upgrades across its existing fleet since 2023.

Finance: draft 13-week cash view by Friday.

SFL Corporation Ltd. (SFL) - Canvas Business Model: Revenue Streams

You're looking at how SFL Corporation Ltd. brings in cash, which is almost entirely through long-term contracts for its assets. This provides a very clear, predictable revenue profile, which is key for a company managing large-scale infrastructure.

The total operating revenue for the third quarter ended September 30, 2025, was $178 million. SFL Corporation Ltd. reported total operating revenues of $178.21 million for the third quarter of 2025. This figure is built from the core business of chartering out its fleet.

The revenue breakdown shows the dominance of the shipping segment in Q3 2025:

• Revenue from shipping assets represented approximately 86% of the Q3 2025 charter hire revenue.
• Revenue from energy assets (drilling rigs) represented approximately 14% of the Q3 2025 charter hire revenue.

Looking at the absolute figures for the energy segment, revenue from energy assets was $24 million, primarily from the LINUS rig on a long-term charter to ConocoPhillips until May 2029. The gross charter hire, including profit share income, totaled $179 million for the quarter. The vessel charter hire component was approximately $154 million, while the rigs contributed approximately $26 million to charter hire.

Beyond the steady charter income, SFL Corporation Ltd. also generates revenue from performance-based arrangements. For Q3 2025, total operating revenue included $1.8 million in profit share income.

The company continues its fleet renewal strategy, which includes selling older tonnage. For Q3 2025, the gain recognized from the sale of older dry bulk and container vessels was $288,000. This is part of a broader optimization effort; subsequent to the quarter end, SFL Corporation Ltd. received approximately $154 million from the sale and re-delivery of 11 bulkers and a container vessel, with an expected $11 million more for the final supramax bulker sale.

The relationship with Frontline Ltd. is a historical example of profit split arrangements, which still provide optionality. Under an adjusted agreement, the profit split is structured as 50% above new time charter rates for VLCCs and Suezmaxes, calculated and paid on a quarterly basis. Under an older agreement, the profit split was 25% above certain daily rate thresholds, calculated annually.

Here is a summary of the key Q3 2025 revenue components:

Revenue Component	Amount (Q3 2025)	Notes
Total Operating Revenues	$178 million	Gross revenue figure.
Shipping Charter Hire Percentage	86%	Of total operating revenues.
Energy Asset Charter Hire Percentage	14%	Of total operating revenues.
Energy Asset Revenue (Absolute)	$24 million	Primarily from the LINUS rig.
Profit Share Income	$1.8 million	Included in total operating revenue.
Gain on Sale of Vessels (Q3)	$288,000	Reported gain for the quarter.

The fixed-rate charter backlog provides significant future revenue visibility, standing at approximately $4 billion as of September 30, 2025.