Safello Group AB Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Q2 Charter Revenues: $174 million, down from Q1 2023 due to the sale of 4 spot-traded tankers.
  • Adjusted EBITDA: $100.9 million, slightly down from $110 million in Q1 2023.
  • Net Income: $17 million or $0.13 per share, primarily impacted by costs related to the Hercules drilling rig, which contributed zero revenue in Q2 due to ongoing upgrades.
  • Dividend: $0.24 per share for the 78th consecutive quarter, representing a ~9% yield based on stock price as of the release date (unchanged from Q1).
  • Fixed-Rate Backlog: Increased to approximately $3.6 billion, ensuring strong cash flow visibility.
  • Hercules Rig Update: SPS and upgrade completed in mid-June. Will contribute ~$100 million EBITDA over the next 12 months. Day rates for upcoming contracts are:
    • ExxonMobil (Canada): ~$375,000/day for 135 days
    • Galp Energia (Namibia): ~$435,000/day for 115 days
    • Equinor (Canada, 2024): ~$520,000/day for 200 days (including transit)
  • Fleet Details: 73 assets including dry bulk (15), container ships (36), tankers (13), drilling rigs (2), and car carriers (7, with 4 more under construction).
    • 92% of Q2 charter revenues came from time charter contracts.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Marius Furuly: Welcome to SFL’s Second Quarter 2023 Conference Call. My name is Marius Furuly, and I’m Vice President for Investor Relations in SFL. We have a new format for the conference call this time using Zoom. And I hope this will be both as informative as usual and easier to navigate afterwards for you. Our CEO, Ole Hjertaker, will start the call by briefly going through the highlights of the quarter. Following that, our Chief Operating Officer, Trym Sjølie, will comment on vessel performance matters before our CFO, Aksel Olesen, will take us through the financials. The call will be concluded by opening up for questions and I will explain the procedure to do this before 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 our current plans and 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, offsh

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional