SFL Corporation Ltd (NYSE:SFL) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 10:00 am ET


SFL Corporation Ltd (NYSE:SFL) Q4 2019 Earnings Conference Call - Final Transcript


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Aksel C. Olesen

equivalents at quarter-end, including $22 million freely available cash in our subsidiaries accounted for as investment in associates, and $3.5 million in restricted cash. The change in investments in marketable securities is mainly related to the sale of the Frontline shares and at quarter-end, they had marketable securities of approximately $74 million, which includes approximately $44 million of Frontline shares where SFL has a $37 million purchase obligation. The increase in short-term debt includes, among others, $37 million purchase obligation on the Frontline shares, $30 million of senior bank financing for existing vessels where SFL has secured refinancing at attractive terms as well as the $64 million of senior unsecured bonds with maturity in June 2020. And subsequent to quarter-end, the company raised a new five-year senior unsecured bond of NOK600 million or approximately $67 million in the Nordic markets. The proceeds were raised at NIBOR plus a margin of 440 basis points. This has been swapped to U.S. dollars at a fixed interest rate of approximately 5.9%. And based on a closing price of Friday, the company had an equity ratio of approximately 38% [Phonetic]. Then to summarize, the Board has declared a cash dividend of $0.35 per share for the quarter. This represents a dividend yield of approximately 10% based on the closing price on Friday. This is the 64th consecutive quarterly dividend and since inception of the company back in 2004, nearly $27 per share or $2.3 billion in aggregate has been returned to shareholders through dividends and while we continue to collect revenue from our $3.6 billion fixed charter rate backlog. We also have upside from profit split arrangements from our VLCCs and Capesize bulk carriers in addition to profit split arrangements related to few savings on some of our larger container vessels. Over the last 12 months, we added more than $490 million in fixed charter rate backlog. We believe that our strong liquidity profile and consistent ability to access attractively priced financing will allow us to pursue accretive growth opportunities in a favorable market environment for new investments. And with that, I give the word back to the operator who will open the line for questions.