SFL Corporation Ltd. (NYSE:SFL) Q1 2023 Earnings Conference Call May 15, 2023 10:00 AM ET

Company Participants

Ole Hjertaker - CEO

Aksel Olesen - CFO

Conference Call Participants

Sherif Elmaghrabi - BTIG

Richard Diamond - Castlewood Capital

Climent Molins - Value Investor's Edge

Operator

Good day and thank you for standing by. And welcome to the Q1 2023 SFL Corporation Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Ole Hjertaker, CEO. Please go ahead, sir.

Ole Hjertaker

Thank you and welcome to SFL's first quarter conference call. [technical difficulty] briefly going through the highlights of the quarter. Apologies for that interruption.

Welcome to SFL's first quarter conference call. First, I will start the call by briefly going through the highlights of the quarter. Following that, our CFO, Aksel Olesen, will take us through the financials, and the call will be concluded by opening up for questions. Our Chief Operating Officer, Trym Sjølie, will also be present for the Q&A session.

Before we begin our presentation, I would like to note that this conference call will contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, estimates, or similar expressions are intended to identify these forward-looking statements.

Forward-looking statements are not guarantees of future performance. These statements are based on the current plans or expectations and are inherently subject to risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements.

Important factors that could cause actual results to differ include but are not limited to conditions in the shipping, offshore and credit markets. You should therefore not place undue reliance on these forward-looking statements.

Please refer to our filings with the Securities and Exchange Commission for more detailed discussion of risks and uncertainties, which may have a direct bearing on the operate operating results and our financial condition.

The total charter revenues were $182 million in the quarter, which went down from the previous quarter primarily due to one rig out of service and lower dry bulk rates in the first quarter. The previous quarter also included a $10 million one-off payment relating to the Seadrill restructuring. The vast majority of revenues were from vessels on long-term charters and around 14% from vessels employed on short-term charters in the spot market. After the sale of the spot-traded tankers, the long-term charter ratio will increase further.