Safello Group AB Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Charter Revenues: $214 million, up 23% from Q2 2023, largely due to return of the drilling rig Hercules to service.
  • EBITDA Equivalent Cash Flow: ~$130 million in Q3 2023 vs. ~$109 million in Q2 2023; 12-month trailing total reached $485 million.
  • Net Income: $29.3 million or $0.23 per share, up from $17 million or $0.13 per share in Q2 2023. Positively impacted by a vessel sale and mark-to-market effects; partially offset by downtime on two tankers and the Linus rig.
  • Dividend: Increased to $0.25 per share from $0.24 in Q2; 79th consecutive quarterly dividend since 2004. Total dividends paid now exceed $2.6 billion.
  • Charter Backlog: Fixed-rate backlog of $3.4 billion, concentrated with high-quality counterparties such as Volkswagen and Maersk.
  • EBITDA Contribution from Car Carriers: Existing Volkswagen charter vessels extended for additional 3 years generating $23.5 million EBITDA per vessel annually. Newbuild Emden delivered in September, generating ~$8.5 million EBITDA during interim charter.
  • Container Segment: $91 million gross charter hire including $2.6 million of profit share. Maersk extended a charter at higher rates, adding $13 million to backlog and granting access to 78% of profit share on fuel scrubber savings.

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Unidentified Company Representative: Welcome to SFL's Third Quarter 2023 Conference Call. My name is [indiscernible] and I'm an analyst in SFL. 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 so 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 US 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, offshore, and credit markets. You should therefore not place undue reliance on these forward-looking statements. Please refer to our filings within the Securities and Exchange Commission

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