Q4 2025 SFL Corp Ltd Earnings Call

February 11, 2026

Operator: Presentation, I would like to note that this conference call will contain forward-looking statements within the meaning of the 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. Please note that 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.

Espen Nilsen Gjøsund: Presentation, I would like to note that this conference call will contain forward-looking statements within the meaning of the 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. Please note that 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.

Speaker #1: 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.

Espen Nilsen Gjøsund: 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 a more detailed discussion of risks and uncertainties, which may have a direct bearing on operating results and our financial condition. Then, I will leave the word over to our CEO, Ole B. Hjertaker, with highlights for the Q4.

Please note that for a look of statements are not guarantees of future performance. These statements are based on our current plans and expectations, and are here, at least subject to risks and uncertainties, that could cause future activities and results of operations to be materially different from those set forth in the port statements.

Operator: Please refer to our filings with the Securities and Exchange Commission for a more detailed discussion of risks and uncertainties, which may have a direct bearing on operating results and our financial condition. Then, I will leave the word over to our CEO, Ole B. Hjertaker, with highlights for the Q4.

Important factors that could cause actual resources 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 for a more detailed discussion or risks and uncertainties which may have a direct bearing on operating resources and our financial condition.

Ole B. Hjertaker: Thank you, Espen. We are pleased to announce our 88th consecutive dividend as we continue to build SFL as a maritime infrastructure company with a diversified, high-quality fleet. For Q4, we reported revenues of $176 million, and an EBITDA equivalent cash flow of $109 million. Over the past 12 months, EBITDA amounts to $450 million, reflecting the continued strength and stability in our operations. In recent quarters, we have taken decisive steps to strengthen our charter backlog, securing long-term agreements with strong counterparties and deploying high-quality assets. We have made significant investments in efficiency upgrades across the liner fleet, which has enabled a very strong fleet performance. Our Chief Operating Officer, Trym Sjølie, will elaborate on this later.

Then I will leave the word over to our CEO. Julia, Taco with highlights for the fourth quarter.

Thank you, Espen. We are pleased to announce the 88th consecutive dividend as we continue to build SFL. As a maritime infrastructure company with a diversified, high-quality fleet, for the fourth quarter we reported revenues of $176 million and an EBITDA equivalent cash flow of $109 million. Over the past 12 months, EBITDA amounts to $450 million.

Reflecting the continued strength and stability in our operations.

In recent quarters, we have taken decisive steps to strengthen our charter backlog, securing long-term agreements with strong counterparties and deploying high-quality assets. And we have made significant investments in efficiency upgrades across the line of fleet, which has enabled the very strong fleet performance. Our Chief Operating Officer, Trym Sjlie, will elaborate on this later.

Ole B. Hjertaker: In December, we announced two transactions with a charterer of four Suezmax tankers, where we agreed to sell a pair of 2015-built Suezmax tankers in the market at very strong price. The vessels were acquired for $47 million per vessel back in 2022, and we agreed to sell the vessels to a third party for approximately $57 million per vessel, with a profit share agreement with the charterer. One vessel was delivered in December, and we recorded a book gain of approximately $11.3 million in Q4. Net cash effect, after repayment of debt and profit shared to the charterer, was approximately $26 million. The second vessel was delivered to the buyer earlier this week, and a similar gain will be recorded in Q1.

In December. We announced 2 transactions with a charter of 4 sewer. Max tankers where we agreed to sell a pair of 2015. Build sewers, Max tankers in the Market at very strong price. The vessels were required for 47 million. 7 million dollars per vessel back in 2022 and we agreed to sell the vessels to a third party for approximately 57 million per vessel with a profit share agreement with the charter.

1 vessel was delivered in December and we recorded a book gain of approximately 11.3 million dollars in the fourth quarter.

Net cash effect after a payment of debt and profit shared to the charterer was approximately 26 million.

Ole B. Hjertaker: This transaction has been very profitable for us, with an annualized return on equity above 25%. In parallel, we also agreed to release the charters on two other 2020-built Suezmax tankers against a compensation of $11.5 million per vessel, instead of selling the vessels in the market to a third party. Similar to the two other vessels, the return on this investment has been very strong based on prevailing values at the time of the agreement in December. We decided to keep these vessels, as they are Korean-built and very fuel efficient. They're also newly dry docked and more attractive for new potential long-term charters compared to the two older vessels.

The second vessel was delivered to the buyer earlier this week, and a similar gain will be recorded in the first quarter.

This transaction has been very profitable for us, with an annualized return on equity above 25%.

In parallel, we also agreed to release the charters on 2 other 2020. Build sewers Max tankers against the compensation of 11.5 million per vessel. Instead of selling the vessels in the market to a third party, similar to the 2 other vessels. The return on this investment has been very strong based on prevailing values at the time of the agreement in December.

Ole B. Hjertaker: Based on US GAAP accounting rules, the full settlement compensation was expensed as a cost in Q4, which turned a net profit into a net loss for the quarter, despite the very strong return on investment so far. The positive side of this is that we have the vessels on our books at only $55 million, while charter free values, according to shipbrokers, is currently in excess of $80 million. The vessels are currently traded in the spot market, and the market has strengthened significantly since the deal was agreed, only, you know, with less than 2 months ago. Net cash flow contribution is currently higher from these 2 vessels alone than all 4 vessels in the original, the charter agreement.

We decided to keep these vessels, as they are Korean-built and very fuel efficient. They're also newly dry-docked and more attractive for new potential long-term charters compared to the two older vessels.

Based on US GAAP accounting rules, the full settlement compensation was expensed as a cost in the fourth quarter, which turned the net profit into a net loss for the quarter, despite the very strong return on investment so far.

The positive side of this is that we have the vessels on our books at only $55 million, while charter or real values, according to shipbrokers, is currently in excess of $80 million.

The vessels are currently traded in the spot market and the market has strengthened significantly since the deal was agreed, um, only, you know, with less than 2 months ago.

Ole B. Hjertaker: I would note that the charter hire for vessels in the spot market is accounted for on a load-to-discharge basis, based on US GAAP, so we can expect some volatility in the profit and loss statement from quarter to quarter due to vessel positioning. We will look for new long-term charter opportunities in due course, and market analysts predict a very strong tanker market next few quarters. We have seen an unprecedented consolidation recently in the supply side for the larger 2 million-barrel VLCCs, and very high charter rates in that segment, which is expected to also have a positive spillover effect on the 1 million-barrel Suezmax market, as these two segments over time has shown a high correlation.

Net cash flow. Contribution is currently higher from these 2 vessels alone than all 4 vessels in the original, the charter agreement.

I would note that charter hire from vessels in the spot market is accounted for on a load-to-discharge basis based on US GAAP. So, we can expect some volatility in the profit and loss statement from quarter to quarter due to vessel positioning.

We will look for new long-term Charter opportunities in due course, and market analysts predict a very strong tanker market in the next few quarters.

Ole B. Hjertaker: Turning to our offshore assets, the Harsh Environment drilling rig, Linus, performs very well on the long-term contract with Conoco, while the Harsh Environment drilling rig, Hercules, remains warm stacked in Norway, pending new employment. The offshore drilling sector is gaining tangible structural support, driven by recent strategic industry developments that underscores higher day rates, extended contract duration, and rising demand for premium high-specification rigs. First, the announced all-stock merger between Transocean and Valaris, announced earlier this week, marks a pivotal consolidation in the space. And secondly, a recent new three-year contract for the Noble GreatWhite drilling rig in Norway, which start up in 2027, illustrates the strengthening contract fundamentals. With this backdrop, we remain optimistic about securing new employment for Hercules in due course.

which is expected to also have a positive spillover effect on the 1 million barrel sewers, Max Market, as these two segments over time have shown a high correlation.

Turning to our offshore assets, the harsh, environment, drilling rig liners, performs very well. On the long-term contract of conaco. While the harsh environment drilling rig Hercules remains warm stacked in Norway. Pending new employment.

The offshore drilling sector is gaining tangible. Structural support driven by recent strategic industry developments that underscores higher day rates, extended contract, duration, and Rising demand for premium high-specification rates.

First, the announced all stock merger between trans social and Volaris it announced. The earlier this week marks a pivotal consolidation in the space and secondly, a recent new 3 year contract for the noble. Great white, drilling rig in Norway. With startup in 2027 illustrates the strengthening contract. Fundamentals with this backdrop, we remain optimistic about securing new employment for her class in due course.

Ole B. Hjertaker: So with the announced $0.20 dividend, SFL has now returned more than $2.9 billion to shareholders over 88 consecutive quarters. This represents a dividend yield of around 9% based on yesterday's share price. Our charter backlog stands at $3.7 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility. Over time, we have consistently demonstrated our ability to renew and diversify their asset base, supporting a sustainable long-term capacity for shareholder distributions. Our solid liquidity position, including undrawn credit lines and unlevered assets at quarter end, ensures that we remain well-positioned to continue investing in accretive growth opportunities. With that, I will now hand the call over to our Chief Operating Officer, Trym Sjølie.

so with the announced 20 cent dividend asfl has no return more than 2.9 billion dollars to shareholders over 88 consecutive quarters

This represents a dividend yield of around 9% based on yesterday's share price.

And a charter backlog stands at 3.7 billion. With 2/3, contracted to investment grade counterparties, providing strong cash flow visibility.

Over time, we have consistently demonstrated our ability to renew and diversify their asset base, supporting a sustainable long-term capacity for shareholder distributions or a solid liquidity position, including on-road credit lines and unlevered assets. At quarter-end, this ensures that we remain well positioned to continue investing in AC creative growth opportunities.

Trym Sjølie: Thank you, Ole. We have a diversified fleet of assets chartered out to first-class customers on mostly long-term charters, and the majority of our customer base is large industrial end users. After the sale of two Suezmaxes in Q4, our current fleet is made up of 57 maritime assets, including vessels, rigs, and contracted new buildings. Our backlog from owned and managed shipping assets stands at approximately $3.7 billion, and the fleet following Q4 is made up of 2 dry bulk vessels, 30 container ships, 14 large tankers, 2 chemical tankers, 7 car carriers, and 2 drilling rigs. Our charter backlog is mainly derived from time charter contracts, and with the exception of 4 container ships on bareboat leases, the rest are on time charter or in the short term or spot market.

Trym Otto Sjølie: Thank you, Ole. We have a diversified fleet of assets chartered out to first-class customers on mostly long-term charters, and the majority of our customer base is large industrial end users. After the sale of two Suezmaxes in Q4, our current fleet is made up of 57 maritime assets, including vessels, rigs, and contracted new buildings. Our backlog from owned and managed shipping assets stands at approximately $3.7 billion, and the fleet following Q4 is made up of 2 dry bulk vessels, 30 container ships, 14 large tankers, 2 chemical tankers, 7 car carriers, and 2 drilling rigs. Our charter backlog is mainly derived from time charter contracts, and with the exception of 4 container ships on bareboat leases, the rest are on time charter or in the short term or spot market.

And with that, I will now hand the call over to our chief operating officer. Trim Shirley

Thank you. A

We have a diversified fleet of assets, chartered out to first-class customers on mostly long-term charters, and the majority of our customer base is large industrial end users.

After the sale of two sewers Maxes in Q4, our current fleet is made up of 57 maritime assets, including vessels, rigs, and contracted new buildings.

Our backlog from owned and managed shipping assets stands at approximately 3.7 billion dollars and the fleet following Q4 is made up of 2. Dry, bulk vessels 30, container ships, 14, large, tankers 2 chemical tankers 7 car carriers and 2 drilling rigs.

Trym Sjølie: The charter revenue from our fleet was about $176 million, and we had a total of 4,008 operating days in the quarter. Our overall utilization across the shipping fleet in Q4 was about 98.6%, and adjusted for unscheduled technical or fire only, the utilization of the shipping fleet was about 99.8%. This quarter, we had two vessels in scheduled dry dock at a cost of about $4.2 million. Furthermore, we had a chemical tanker in shipyard to carry out upgrades to the LNG dual fuel system to better handle gas boil off. The sister vessel will have the same upgrade done in Q1. This is part of our drive to ensure we can fully utilize our dual fuel capabilities.

Trym Otto Sjølie: The charter revenue from our fleet was about $176 million, and we had a total of 4,008 operating days in the quarter. Our overall utilization across the shipping fleet in Q4 was about 98.6%, and adjusted for unscheduled technical or fire only, the utilization of the shipping fleet was about 99.8%. This quarter, we had two vessels in scheduled dry dock at a cost of about $4.2 million. Furthermore, we had a chemical tanker in shipyard to carry out upgrades to the LNG dual fuel system to better handle gas boil off.

Our Charter backlog is mainly derived from time Charter contracts and with the exception of 4 container ships on bebot leases the rest are on time Charter or in the short term or spot Market.

The charter revenue from our fleet was about $176 million, and we had a total of 48,008 operating days in the quarter.

Our overall utilization across the shipping fleet in Q4 was about 98.6%, and adjusted for unscheduled technical or fire, only the utilization of the shipping fleet was about 99.8%.

This quarter we had 2 vessels in scheduled Dry. Dock at a cost of about 4.2 million US dollars.

Trym Otto Sjølie: The sister vessel will have the same upgrade done in Q1. This is part of our drive to ensure we can fully utilize our dual fuel capabilities. All of our six LNG dual fuel vessels are actually operating on LNG, which aligns with our ambitions to reduce greenhouse gas emissions from our fleets. I will now give the word over to our CFO, Aksel Olesen, who will take us through the financial highlights of the quarter.

Furthermore we had a chemical tanker in Shipyard to carry out upgrades to the LG dual fuel system to better handle gas boil off the system. So we'll have the same upgrade done in q1.

Trym Sjølie: All of our six LNG dual fuel vessels are actually operating on LNG, which aligns with our ambitions to reduce greenhouse gas emissions from our fleets. I will now give the word over to our CFO, Aksel Olesen, who will take us through the financial highlights of the quarter.

This is part of our drive to ensure we can fully utilize our dual fuel capabilities.

All of our 6 LG dual fuel vessels are actually operating on LG, which aligns with our Ambitions to reduce greenhouse gas emissions from our freight.

I will now give the word over to our CFO axle Olsen who will take us through the financial highlights of the quarter.

Aksel Olesen: Thank you, Trym. Turning to this slide, we present a pro forma illustration of our cash flows for the quarter. Please note that this is only a guideline to assess the company's underlying performance. It is not prepared in accordance with US GAAP and excludes extraordinary and non-cash items. The company generated approximately $176 million of charter hire during the quarter. Of this, around $81 million came from our container fleet, including profit share related to fuel savings on seven of our large container vessels. The car carrier fleet generated approximately $26 million of charter hire, compared to $23 million in the prior quarter, reflecting that all vessels were fully back in service during the period, following a scheduled dry dock in last quarter.

Aksel C. Olesen: Thank you, Trym. Turning to this slide, we present a pro forma illustration of our cash flows for the quarter. Please note that this is only a guideline to assess the company's underlying performance. It is not prepared in accordance with US GAAP and excludes extraordinary and non-cash items. The company generated approximately $176 million of charter hire during the quarter. Of this, around $81 million came from our container fleet, including profit share related to fuel savings on seven of our large container vessels. The car carrier fleet generated approximately $26 million of charter hire, compared to $23 million in the prior quarter, reflecting that all vessels were fully back in service during the period, following a scheduled dry dock in last quarter.

Thank you, trim.

Turning to this slide. Represent a performer, illustration for cash flows for the quarter.

Please note that this is only a guideline to assist companies’ underlying performance. It is not prepared in accordance with US GAAP and excludes extraordinary and non-cash items.

The company generated approximately 176 million of chart higher during the quarter.

Aksel Olesen: In tankers, the fleet generated approximately $42 million of charter hire, down from around $44 million in the previous quarter due to a scheduled dry docking. In dry bulk, we have divested the majority of the fleet over recent quarters and now have two Panamax vessels remaining, both trading in the short-term market. Revenue from these vessels was approximately $2.7 million, or time charter equivalent of approximately $15,000 per day per vessel. Revenue from our energy assets was approximately $23 million, mainly generated by the Linus, which is in a long-term contract with ConocoPhillips through May 2029. Net operating and G&A expenses for the quarter were approximately $67 million, in line with the previous quarter. Overall, this resulted in an adjusted EBITDA of approximately $109 million, which is in line with the third quarter.

Aksel C. Olesen: In tankers, the fleet generated approximately $42 million of charter hire, down from around $44 million in the previous quarter due to a scheduled dry docking. In dry bulk, we have divested the majority of the fleet over recent quarters and now have two Panamax vessels remaining, both trading in the short-term market. Revenue from these vessels was approximately $2.7 million, or time charter equivalent of approximately $15,000 per day per vessel. Revenue from our energy assets was approximately $23 million, mainly generated by the Linus, which is in a long-term contract with ConocoPhillips through May 2029. Net operating and G&A expenses for the quarter were approximately $67 million, in line with the previous quarter. Overall, this resulted in an adjusted EBITDA of approximately $109 million, which is in line with the third quarter.

Reflecting that all vessels were fully back in service during the period, following a scheduled drydocking in last quarter.

And thank you. It's the fleet generated—approximately $42 million of charge, higher than from around $44 million in the previous quarter due to a scheduled dry-docking.

In dry bulk. We are divested the majority of the fleet or recent quarters. And now have 2 campster max vessels remaining Wall Street, in a shorter Market.

Revenue from these Les was approximately 2.7 million or it is equivalent of approximately 15,000 dollars per day per vessel.

revenue from our energy assets, social approximately 23 million mainly generated by the liners, which is in a long-term contract with conco Phillips through May 2029

Net operating and DNX expenses for the quarter were approximately $67 million, broadly in line with the previous quarter.

This resulted in an adjusted divida of approximately 109 million which is in line with the third quarter.

Aksel Olesen: Turning now to the profit and loss statement under US GAAP. For the quarter, we report total operating revenues of approximately $176 million, compared to $178 million in the previous quarter. The net result for the quarter was impacted by several non-recurring and non-cash items, including a gain on sale of a Suezmax tankers of approximately $11.3 million, settlement compensation of $23 million relating to two Suezmax tankers, positive mark-to-market effects from hedging derivatives of $600,000, positive mark-to-market effects from equity investments of $700,000, and an increase in credit loss provisions of $200,000. As a result, under US GAAP, the company reported a net loss of approximately $4.7 million or $0.04 per share. Turning to the balance sheet.

Aksel C. Olesen: Turning now to the profit and loss statement under US GAAP. For the quarter, we report total operating revenues of approximately $176 million, compared to $178 million in the previous quarter. The net result for the quarter was impacted by several non-recurring and non-cash items, including a gain on sale of a Suezmax tankers of approximately $11.3 million, settlement compensation of $23 million relating to two Suezmax tankers, positive mark-to-market effects from hedging derivatives of $600,000, positive mark-to-market effects from equity investments of $700,000, and an increase in credit loss provisions of $200,000. As a result, under US GAAP, the company reported a net loss of approximately $4.7 million or $0.04 per share. Turning to the balance sheet.

During now to the profit and loss statement on the US, gaap.

For the quarter report. Total operating revenues of approximately 176 million compared to 178 million in the previous quarter.

The net result for the quarter was impacted by several non-recurring, and non-cash items including again on sale.

Of approximately 11.3 million.

Settlement compensation of 73 million relating to 2 s Max tankers positive. Mark to Mark effects from hitching. Derivatives of 600,000 positive, Mark to Mark effects from Max Investments of 700,000 and create an increase increase. Increase of provisions of 200,000.

As a result, on US GAAP the company reported a net loss of approximately $4.7 million, or 4 cents per share.

Aksel Olesen: As of year-end, cash and cash equivalents totaled approximately $151 million, with an additional $46 million available on the undrawn credit facilities. The facility related to the Hercules rig, which matured at year-end, was repaid using balanced cash, leaving the rig debt-free at quarter-end. We have since negotiated a new financing facility, which we expect to execute during Q1, so with the customer closing conditions. The remaining capital expenditures on our five container newbuildings of approximately $850 million is expected to be funded through a combination of pre- and post-delivery financing. We're experiencing very strong interest from lenders, reflecting a strong financing market for these assets. Finally, based on quarter-end figures, the company's book equity ratio is approximately 26%.

Aksel C. Olesen: As of year-end, cash and cash equivalents totaled approximately $151 million, with an additional $46 million available on the undrawn credit facilities. The facility related to the Hercules rig, which matured at year-end, was repaid using balanced cash, leaving the rig debt-free at quarter-end. We have since negotiated a new financing facility, which we expect to execute during Q1, so with the customer closing conditions. The remaining capital expenditures on our five container newbuildings of approximately $850 million is expected to be funded through a combination of pre- and post-delivery financing. We're experiencing very strong interest from lenders, reflecting a strong financing market for these assets. Finally, based on quarter-end figures, the company's book equity ratio is approximately 26%.

According to the balance sheet as of year, end cash and cash equivalents total approximately 151 million with an additional 46 million available on the undrawn credit facilities, the facility related to the her rig which measured at year end was repaid. Using balance sheet cash. Leaving the rigged that free at quarter end.

Yeah, since single stated on your financing facility, you should expect to execute during the first quarter. So with the customer closing conditions,

The remaining capital expenditures on our five containership newbuildings of approximately $850 million is expected to be funded through a combination of pre- and post-delivery financing.

We're experiencing very strong interest from lenders, reflecting a strong financing market for these assets.

Finally based on courtroom figures the company's book, expiration to the approximately 26%.

Aksel Olesen: To conclude, the board has declared the eighth year consecutive quarterly cash dividend of $0.10 per share, sending a dividend yield of approximately 9%. Charter backlog stands at approximately $3.7 billion, with more than two-thirds linked to customers with Investment Grade ratings, providing strong cash flow visibility. We have solid balance sheet and liquidity position. We remain well positioned to act on accretive investment opportunities. With that, I will hand the call back to Espen, who will open the line for questions.

Aksel C. Olesen: To conclude, the board has declared the eighth year consecutive quarterly cash dividend of $0.10 per share, sending a dividend yield of approximately 9%. Charter backlog stands at approximately $3.7 billion, with more than two-thirds linked to customers with Investment Grade ratings, providing strong cash flow visibility. We have solid balance sheet and liquidity position. We remain well positioned to act on accretive investment opportunities. With that, I will hand the call back to Espen, who will open the line for questions.

To conclude.

The board is declared the as consecutive Court of 10% per share.

Of approximately 9%.

Short it back to stands at approximately 3.7 billion with more than 2/3 linked to customers with investment grade ratings, providing strong cash flow, visibility.

We have a solid balance sheet and liquid deposits. We remain well positioned to act on the created investment opportunities.

Operator: Thank you, Aksel. We will now open it up for a Q&A session. For those of you who are following this presentation through Zoom, please use the Raise Hand function under Reactions in the toolbar to ask a question. When your name is called out, please unmute your speaker to ask your question. Thank you. We will have our first question from Mr. Gregory Lewis. Gregory, please unmute your speaker to ask your question.

Espen Nilsen Gjøsund: Thank you, Aksel. We will now open it up for a Q&A session. For those of you who are following this presentation through Zoom, please use the Raise Hand function under Reactions in the toolbar to ask a question. When your name is called out, please unmute your speaker to ask your question. Thank you. We will have our first question from Mr. Gregory Lewis. Gregory, please unmute your speaker to ask your question.

With that, I will hand the call back to Espen. We'll open the line for questions.

Thank you, Aksel. We will now open it up for a Q&A session. For those of you who are following this presentation through Zoom, please use the raise hand function under Reactions in the toolbar to ask a question. When your name is called out, please unmute your speaker to ask your question.

Thank you.

Gregory Lewis: Hey, thank you, and good afternoon, everybody, and thanks for taking my questions. You know, thanks for highlighting the, you know, the activity in the Suezmax with your Suezmax ships. You know, in all, I guess I'd be curious how you're thinking about those vessels. Clearly, the crude tanker spot market seems to be surprising to the upside, everybody's expectations. Rates are strong. You know, I know the focus is on putting out long-term charters. You know, we've definitely seen some short, I guess, 12-month charters for some of the larger vessels, some of these.

And we will have our first question from Mr. Gregory Lewis Gregory, please unmute your speaker to ask your question.

Hey, thank you and good afternoon, everybody. And thanks for taking my questions. Um, you know, thanks for highlighting the, um, you know, the activity in in Sue, as Max with your Sue, Max, Max shifts. Um, you know, you know all, uh, I guess I'd be curious how you're thinking about those vessels. Clearly. The, the, the the,

crew tank or spot Market seems to be

To the upside everybody's expectations. Um, rates are strong, you know, I know that the the the focus is on putting out long-term Charters, you know. We'll we'll definitely seen some

Gregory Lewis: But I'm just kind of curious, you know, just given the strength and rates in, you know, where we are in the first part of 2026, are we starting to see signs or interest from customers or charters around multi-year contracts? Or is it, you know, as we think about these vessels, should we just be thinking more, "Hey, the spot market's good, the outlook's good for the next couple of years, and we're just gonna use this kind of as a trade?

Signs of interest from customers or charters around multi-year contracts, or is it, you know, as we think about these vessels, should we just be thinking more, hey, the spot market's good, the outlook looks good for the next couple of years, and then we're just going to use this kind of as a trade?

Ole B. Hjertaker: Yeah. Hi, Greg, and thanks. Yes, you know, we find that market segment quite interesting right now for a couple of reasons. And just to also be clear about that, you know, when this transaction, call it opportunity, came about, this was really backed by the agreement we had there with this customer, where we, after a certain period of time, you know, gave them the opportunity to effectively trigger a sale with a profit share, as long as we were over, you know, a level that gave us a very good return in the first place. And then the market had been moving up, and they were interested in doing that. So we sold it to older, you know, Chinese-built vessels.

Ole B. Hjertaker: If you look at the equity returns we generated on that, those with the implied profit split that we got out of it, too, we're talking sort of high twenties in return on equity on those deals. So you could say it was a really strong deal, and much better than we anticipated when we did that deal back in the days. They also wanted to do the same with the other two vessels. But the other two, the Korean-built vessels, are more attractive for long-term charters. They are Korean-built; they're sort of eco design; they have scrubbers. We just had them through a dry dock, and we believe they are more attractive also for longer-term charter opportunities.

Yeah. Hi Greg. Um, and and thanks, um, yes. Uh, you know, we find that market segment, quite interesting, uh, right now for for a couple of reasons. And, and, and just to just to also be clear about that we, you know, when, when this transaction you call it opportunity came about this was based really backed by the the agreement. We had there with this customer where we um, after a certain period of time, you know, gave them the opportunity to effectively trigger a sale with a profit share as long as we were over, you know, a level that gave us a very good return in the first place. Uh, and then the market had been moving up and and, and they they were interested in doing that. So we sold it to older, you know, Chinese built vessels. And and if you look at the equity returns, we generated on that those with the with the, with the implied profit split that, we got out of it too. We're talking sort of high 20s in in return on equity on those deals. So,

So, you can say was, I would say it was a really strong deal, uh, and much better than we anticipated when we did that deal back in the days.

Ole B. Hjertaker: What we did not anticipate at, you know, back in December, was the way the market moved upward sharply. So we, over this two-month period, both, you know, one-year charter, as indicated by brokers and also, the index, the TD20 index, that sort of is used for hedging this market, is up 20%, you know, in that short period of time. A couple of reasons for that.

Ole B. Hjertaker: I mean, you know, you have some trading pattern issues, but I think one very important underlying factor here on the tanker side, which I would call almost unprecedented in the market, at least, you know, in the history I've seen, is that you have one, you know, party or group of people who are working together to effectively control, you know, around 1/3 of the available or traded tanker VLCC fleet out there.

Um, and, and they also wanted to do the same with the other 2 vessels, but the other 2, the Korean built vessels are more attractive for long-term Charters. They're Korean built, they're sort of Eco. Uh, design. Uh, they have scrubbers we just had them through a dry dock and we believe they are more attractive. Also for longer term Charter opportunities. What we did not anticipate at you know back in December was the way the market move up. Moved up or shortly. So we over this 2 month period both you know 1 year Charter as indicated by Brokers and also uh the the index, the td20 index that sort of is used for hedging. This Market is up 20% uh you know in in that short period of time um a couple of reasons for that. I mean you know, you have some trading pattern issues but I think 1 1, very important underlying Factor here on the on the tanker side which I would call almost unprecedented in the market as least.

Ole B. Hjertaker: And we believe they are willing to hold back ships if they don't get the rate, charter rate, where they want it to be, which, you know, implicitly, you know, would give also the other owners out there, you know, confidence to hold back and not just drop their pants, so to speak, and fix at lower levels. So I think that is a very, you know, I would say, fundamental shift in the market. Then we have to look at the correlation between the VLCC market and the Suezmax market, where this over the last 25 years, the Suezmaxes have earned, you know, around 85% of the VLCC, you know, charter rate.

You know, in the history I've I've seen is that you have 1, you know, party or group of of of, you know, because of of of of people who are working together to effectively control, you know, around a third of the available uh or or traded uh tanker Wheels to see Fleet out there. Um, and and we believe, they are willing to hold.

Ole B. Hjertaker: We believe that, you know, with the dynamics on the VLCC market, and also trading patterns, which is quite interesting for the Suezmax size, you know, we think the market could remain firm for some time. But our ultimate objective here is to find new longer-term charters for these vessels. But then, of course, in the meantime, we enjoy the spot market. And so just to be clear, I mean, we used to have four vessels. The two vessels, you know, that are remaining, you know, are generating more net cash flow than all four vessels did in the previous chartering arrangement. So far, you know, we're generating more cash out of two vessels compared to four vessels in the past.

Call back ships. If they don't get the right order rate where they want, they want it to be, which, you know, implicitly, you know, would give also the other owners out there, you know, confidence to hold back and not just drop their, you know, drop their pants. So to speak and, and, and fix at lower levels. So I think that is a, that is a very, uh, you know, what you say, fundamental shift in the market. And then we have to look at the correlation between the V VCC market and the sewers Max Market where the over the last 25 years, the sewers Maxes have earned, you know, around 85% of the VCC, you know, Charter rate. So we believe that, you know, with the Dynamics on the VCC Market, um, and also trading patterns, which is quite interesting for for the sewers Max size, you know, we we we think the market could remain firm for some time but our ultimate objective here is to find new longer-term, Charters with these vessels. Uh but then of course, in the meantime, we enjoy the sport Market.

Gregory Lewis: Yeah, no, it's definitely good to be a tanker owner at the moment. And then Ole, I was hoping, realizing that, you know, it's always the board decision; there's lots of variables that go into how the company thinks about the dividend. But as we kind of think about, you know, the I guess it'll be later this year, and I think next quarter it'll be that the dividend would have been lowered for about a year now. You know, I think at the time, one of the drivers of that dividend was, you know, the lack of visibility on the Hercules, but, you know, to the sustainability of the model, you know, the dividend is still below 50% of operating cash. It's well covered on a net income basis.

Yes, and then just to be clear, I mean we we used to have 4 vessels. Uh, the 2 vessels, you know that are remaining, you know, are generating more net cash flow than all 4 vessels did in the previous chartering Arrangement. So so so far, you know, we're generating more cash out to 2 vessels compared to 4 vessels in the past.

Gregory Lewis: You know, I guess two questions here: How are we thinking about the dividend over the next 12 months? And to that point, to that point, how is the market looking for in the secondhand market, i.e., opportunities? Clearly in tankers, prices are high, charter rates have catching up to do. How is the opportunity for growth looking in kind of the container ship market, which, you know, seems to be maybe where numbers, the economics might look a little better in doing a, you know, a purchase and charter out?

% of operating cash. It's well covered on the net income basis. Um, you know, I I guess 2 questions here, how are we thinking about the dividend over the next 12 months and and and, and to that point, um, it is, is 1 of the

To that point. How is the market looking for?

Ole B. Hjertaker: Yeah, thanks. I mean, to start with, with the dividend, for that question, the board, you know, you know, never guides on dividend, you know, going forward. But, you know, the underlying sort of, structure or the, you know, what goes into that, evaluation is long-term sustainable cash flows. If you look at the last year, we did sell a number of vessels, you know, some, you know, that were coming to the end of the charter period. We sold some older, you know, feeder container ships, et cetera, so, so which freed up, quite a bit of, of capital. And, and of course, you know, to have a sustainable distribution, you, you have to have producing assets, you know, you know, call it generating, you know, those returns. So, so that's one thing.

In the secondhand Market, IE opportunities. Clearly, and tackers, prices are High um, Charter rates of catching up to do how, how is the opportunity for growth looking in? In kind of the the container ship Market which um, you know, seems to be maybe where numbers, the economics might look a little better in doing a, you know, XA a purchase in in Charter out.

Yeah, thanks. I mean to start with, uh, with the dividend and, uh, call that question. Um, the board, you know, you know, never guide some dividend, you know, going forward, uh, but, you know, the underlying sort of, uh, structure or the, you know, what goes into that? Uh, evaluation is long term, sustainable, cash flows. Um, if you look at the last year, um, we did sell a number of vessels, you know, some, you know, that were coming to the end of the charter. Period, we sold some older. You know, feeder. Container ships, Etc. So, so which freed up quite a bit of uh, of capital. Um and and of course, you know, to have a sustainable

Ole B. Hjertaker: And also, I would say last year, you know, for geopolitical reasons, you know, with that sort of we call it a trade war, or at least trade friction, you know, mounting, we sensed that many of the players out there were stepping a little bit back. They were very uncertain about how this all would involve, and then it's difficult to get call it counterparties to commit long term. So we sense now that the dynamics is more, is better. We see more interest in engaging for new business, but you know, we cannot really comment on anything before we potentially do it.

Ole B. Hjertaker: From a board perspective, I mean, it's very. We try to be disciplined, try not to, what do we say, run out and just spend the money because we have capital available. It's all about trying to do the right deals, long-term deals. And then, you know, from time to time, you may get lucky, like we did on the Suezmax factors, with a much stronger return than we expected. So, that's what you should expect from us. You know, we should try to deploy the capital in a hopefully, you know, balanced way, build the distributable cash flow. We still have the drilling at Hercules, you know, idle, that used to produce a lot of cash flow for us in 2024.

Distribution, you, you have to have producing assets, uh, you know, you know, call it generating, you know, those returns. So, so that's 1 thing. Um, and and also, I would say last year, you know, for geopolitic reasons, um, you know, with that sort of how we call it the trade war, or at least trade friction, you know, mounting. Uh, we sense that many of the players out there where stepping a little bit back, they were very uncertain about how this all would involve and then it's difficult to get, uh, we call it counterparties to commit long term. Um, so so we sense. Now that the Dynamics is, is more is better. We we, we see more interest in engaging, for, for new business, but, you know, we cannot really comment on on anything before we potentially do it. And, uh, from from a, from a board perspective. I mean, it's very it, we try to be disciplined. Try not to what can we say, run out and uh, and just spend the money.

Money, because we have Capital available, it's all about trying to do the right deals, long term deals. Um, and then, you know, from time to time, you may get lucky like we did on these suspects tankers with a with a much stronger return than we, uh, expected. So, um, that's what you should expect from us. You know, we should, we should try to deploy the capital and, uh, hopefully, uh, you know, balanced way, uh, build the distributable cash flow. Um, we still have the

Ole B. Hjertaker: So there are a few factors here going into that. But still, we are looking at north of $100 million in dividends per year, even at this level. So we are, you know, we are paying a lot of cash flow out to shareholders. It's more than $2.9 billion over the 88 quarters. So I think we've shown a disciplined approach to it, that we've been standing firm through pretty rough cycles, and hopefully we will have a good capacity also going forward.

Gregory Lewis: Super helpful. Thank you for taking my questions.

The drilling and calculus, you know, Idle, uh, that used to produce a lot of cash flow for us in 2024. So there are a few factors here going into that, but, uh, but still, we're looking at north of $100 million in dividends per year, even at this level. So, so we are, you know, we are paying a lot of cash flow out to shareholders. It's, uh, more than $2.9 billion over the 88 quarters. So I think we've shown that disciplined, uh, approach to it, that we've been standing for pretty rough cycles, and, um, hopefully we will have a good capacity also going forward.

Ole B. Hjertaker: Thank you.

Operator: Thank you. Then we'll also have a question from Mr. Clem, Climent Molins. Kindly unmute your speaker to ask your question.

Espen Nilsen Gjøsund: Thank you. Then we'll also have a question from Mr. Clem, Climent Molins. Kindly unmute your speaker to ask your question.

Super helpful. Thank you for taking my questions. Thank you.

Thank you. Uh, then we'll also have a question from Mr. Clown Clara. Uh, kindly unmute your speaker to ask your question.

Climent Molins: Hi, Ole and team. Thank you for taking my questions. I joined a few minutes late, so you may have touched upon this, but I wanted to follow up on Greg's question on the charters you terminated. Could you remind us what was the rate on the previous contract? And secondly, could you talk a bit about the fixtures you have secured to date in the spot market?

Hi Olin de, thank you for taking my questions.

I joined a few minutes late so you may have touched upon this but I wanted to follow up on Greg's question on the charters. You terminated

Could you remind us what was the rate on the previous contract? And secondly, could you talk a bit about the fixtures you have secured today in the spot market?

Ole B. Hjertaker: Yes. You know, this was a deal that was done back in 2022. The 2 Chinese-built vessels were acquired for, at that time, around $46 to 47 million, if I'm not mistaken. We had charter rates of around $27,000 per day, and you know, for that period, and then we sold them now for $57 million net. So we've enjoyed, you know, strong cash flows, depreciated the assets, and then sold them for, you know, 20% more gross than we bought them for three years earlier. You know, hence, the very strong returns on that deal. A similar dynamics on the newer Korean-built vessels, they were more expensive, so we bought them for around $64-ish million, if I'm not mistaken.

Ole B. Hjertaker: And if you look at the broker reports now, and you have, for instance, the, the, the broker, you know, Fearnleys, they just increased their, you know, valuations on tanker assets, and they now guide five-year-old Suezmax tankers at $85 million. So it's a significant uplift also for these assets. If you look at the spot market, we typically will not, you know, guide on spot market there, and then. I mean, you can look up to the brokers, they will typically guide you on what the charter rates are.

A similar Dynamics on the on, on the newer Korean build vessels, they were more expensive so we bought them for around 64 million dollars, if I'm not mistaken. Um, and uh, if you look at the broker reports now and uh, you have for instance, the the the broker, you know, firmly, they just increase their, uh, you know, valuations on tanker assets and they know guide 5 year old sewers, Max tankers at 85 million. So it's a sign, significant uplift. Also for for these assets

Ole B. Hjertaker: But just to give you a you know, a guiding, you know, right now, and this is just from a broker report, they guide a one-year TC for a modern Suezmax tanker would be, you know, in the high forties. They guide $47,500, while if you use the Suezmax TD20 index, you know, you could do twelve-month, twelve months now in excess of $60,000 per day, you know, based on the index alone. So the market is quite strong. As I mentioned, we were below $30,000 in, you know, in the old structure. And remember also on those vessels, on the vessels, you know, you have to subtract operating expenses, you have to subtract interest and amortization on the loans.

Um, if you look at the, the spot Market, uh, we we, we typically will not, uh, you know, guide on on, you know, spot Market there. And then, I mean, you can you, you can, you can look up to the Brokers, they will typically guide you on on what the charter rates are. But just to, to give you a, you know, a guiding, you know, right now and this is just from a broker report. Uh, the guy that a 1 year TC for a for a modern uh, service Max tankers would be, you know, in the high 40s. They guide 47,500 while if you use the service, Max td20, uh, index, you know, they, you could do 12 months 12 months now in excess of 60,000 dollars per day, you know, based on the index alone. So so the market is is is quite strong as a guide. As I mentioned, we were below 30,000 dollars in, you know,

Ole B. Hjertaker: So we are now in this market, generating more than we did, well, from the two vessels, than we did from all four vessels combined on a net basis. I would mention, though, that based on US GAAP, well, first of all, you know, we had to expense the termination fee on the two modern vessels, despite having a very low, you know, book value level on those vessels. You know, because we own them already, you know, it had to be taken straight through PNL in Q4. So that had that effect.

When the old structure, uh, I remember also on those vessels or on the vessels, you know, you have to subtract operating expenses, you have to subtract interest and amortization on the loans. So we are now in this market generating more than we did from the 2 vs than we did, from All 4 vessels combined on a on a net basis. Uh, I would I would, I would mention though that

Ole B. Hjertaker: Also, when you trade vessels in the spot market, you know, this, you know, be it tankers or bulkers based on US GAAP, you have to account for the revenues on a load-to-discharge basis. And typically, these assets, they go empty and ballast, as we call it, one way, and you load it, and then you go load it the other way. So you will see some volatility in the P&L effect for these assets, all depending on the position they are, whether they, you know, through the specific quarter, were more loaded than empty in that rotation. When we got them back off that charter, and this is, again, a coincidence, but both vessels were just, you know, coming off a loaded journey and therefore, you know, started with some ballast days.

Based on us gaap. Well, first of all, you know, we had to expand, uh, the the the termination fee on the 2 modern vessels. Despite having a very low, you know, book book value level on those vessels, uh, you know, because we own them already, you know, it has to be take had to be taken straight through p&l in the fourth quarter. So so that had that effect also. Um, when you trade the vessels in the spot Market, uh, you know this you know being a tankers or bulkers based on you and staff, you have to account for the revenues on a load to discharge bases and typically these assets, they go empty and balanced as we call it 1 way and you load it and then you go loaded the other way. So, you will see some volatility in the p&l effect, uh, for these assets. All depending, on the position they are, whether they, you know, through the, the specific charge quarter, where more loaded than m,

Ole B. Hjertaker: When we got them back off that charter, and this is, again, a coincidence, but both vessels were just, you know, coming off a loaded journey and therefore, you know, started with some ballast days. But this is something that will balance and equal out over the year. But, you know, from quarter to quarter, there may be some, call it, earnings volatility due to US GAAP.

Ole B. Hjertaker: But this is something that will balance and equal out over the year. But, you know, from quarter to quarter, there may be some, call it, earnings volatility due to US GAAP.

In that rotation, um, when we, when we got them back of the charter and this is again a coincidence, but both vessels were just, uh, you know, coming off a loaded journey and therefore, you know, started with some ballast days. Uh, but this is, uh, something that will balance an equal out over the year. But, you know, from quarter to quarter, there may there may be some call it uh, earnings volatility due to us cap.

Climent Molins: Yeah, makes sense. Thank you. And after recent sales on the dry bulk side, you only have two remaining Panamaxes. Those seem clearly non-core. Is that a fair assessment? And secondly, there has seemingly been some interest from potential charterers on long-term contracts on Newcastlemax newbuilds. What are your thoughts on potentially relocating some capital towards dry bulk?

Yeah, makes sense. Thank you.

And after recent sales on the dry book side, you only have to remain in Panama access. Those seem clearly. Non-core. Is that a fair assessment?

And secondly, there has seemingly been some interest from potential charters on long-term contracts on Newcastle max nugs.

Ole B. Hjertaker: Yeah, thanks. I mean, we've always been invested in the drybulk sector. And you could say, I would say it's more of a coincidence now that we are down to two vessels. We are segment agnostic, so we would look at deals in all the segments, including the drybulk segment, and have a look at, you know, multiple transactions. But you know, to get to a deal, you know, it has to make sense for us from a, you know, one thing is the purchase price, the charter rate, the charter party, the financing structure we can build around it. And of course, our charterer would want to pay the charter rate we need to have to make that work for us.

Aksel C. Olesen: Yeah, thanks. I mean, we've always been invested in the drybulk sector. And you could say, I would say it's more of a coincidence now that we are down to two vessels. We are segment agnostic, so we would look at deals in all the segments, including the drybulk segment, and have a look at, you know, multiple transactions. But you know, to get to a deal, you know, it has to make sense for us from a, you know, one thing is the purchase price, the charter rate, the charter party, the financing structure we can build around it. And of course, our charterer would want to pay the charter rate we need to have to make that work for us.

What are your thoughts on potentially re reallocating some Capital towards try book?

Yeah, thanks. I mean, we've always been invested in the in the dry sector. Um, and and you can say, I would say it's more of a coincidence. Now that we are down to 2 vess, we are segments agnostics. Uh, so we would look at deals in, in all the segments and, including the drybox segment and have a look at that, you know, multiple transactions, but you know, to to to get to a to get to a deal. Uh, you know, it has to make sense for us. From a, you know, 1 thing is to purchase price, the charter Aid, The Carter party, the financing structure, we can build around it. Um and of course our Charter would

Ole B. Hjertaker: So this is sort of a balance, and you are correct, we're only two vessels left now. I wouldn't say they are non-core. Those vessels were on 10-year time charters and have been, over time, quite profitable for us, but we are traded more in the short-term market, currently. So we look at opportunities on the dry side as we do in other sectors, and as I said, agnostics, it's all about getting a good risk adjusted return.

Aksel C. Olesen: So this is sort of a balance, and you are correct, we're only two vessels left now. I wouldn't say they are non-core. Those vessels were on 10-year time charters and have been, over time, quite profitable for us, but we are traded more in the short-term market, currently. So we look at opportunities on the dry side as we do in other sectors, and as I said, agnostics, it's all about getting a good risk adjusted return.

Want to pay the charter rate, we need to do, you have to make that work for us. So so this is sort of a, a balance and uh, you are correct. We're only 2 vessels left. Now.

Risk. Adjusted return.

Climent Molins: Thanks for the call. I'll turn it over. Thank you for taking my questions.

Thanks for the caller. I'll turn it over. Thank you for taking my questions.

Operator: All right, then we have some written questions. Could you please share any updates on the Hercules?

Espen Nilsen Gjøsund: All right, then we have some written questions. Could you please share any updates on the Hercules?

Ole B. Hjertaker: Yes. The Hercules has remained idle since November 2024, so it was idle through 2025. Generated very strong cash flows when it was working. Now, it has remained idle. We have been looking for employment. That market has been a little slow, it's fair to say. But we now see signs both with, from a consolidation perspective, where we had the big merger announced earlier this week, Transocean and Valaris. And we also saw a drilling rig with, I would call it similar sort of harsh environment, ultra deep water features that was recently fixed on a three-year charter, which start up in 2027.

All right, then we have some written questions. Could you, please share any updates on the Hercules?

Yes. Um,

Ole B. Hjertaker: So, based on what we see from brokers, it looks like there is more market dynamics and more employment opportunities there going forward. But we cannot comment specifically on the rig, or we cannot comment on discussions we may have on this rig specifically. We will announce contracts if and when they materialize.

the resi Hercules has remained idle, uh, since November 24th, so it's it was idle through, uh, 2025, uh, generated very strong cash flows when it was working. Um, now, um, it's it has remained idle. We are, we have been looking for employment that market has been a little slow. It's fair to say, uh, but we now see signs both with from a consolidation perspective where we had the big merger announced earlier this week transition of ours. Um, we also saw a drilling rig with I would call it similar sort of harsh, environment, Ultra deep water, uh, features that was recently fixed, uh, on the 3 year Charter with startup in 2027. So, um, based on, uh, based on what we see from Brokers, uh, it looks like, uh, there is more market dynamics and, and more, uh, employment opportunities, uh, they are going forward, but

We cannot comment specifically on the rig, or we cannot comment on discussions we may have, uh, on this rig specifically. We will announce, uh, contracts, uh, if and when they materialize.

Operator: Thank you. We also have another one here: How do you see the long term evolution of the contracted revenue mix across the different shipping segments? Do the container new build orders signal the strategic direction the company intends to pursue?

Espen Nilsen Gjøsund: Thank you. We also have another one here: How do you see the long term evolution of the contracted revenue mix across the different shipping segments? Do the container new build orders signal the strategic direction the company intends to pursue?

Thank you. Uh,

We also have another one here. How do you see the long-term evolution of the contracted revenue mix across the different shipping segments? Do the container newbuild orders signal the strategic direction the company intends to pursue?

Ole B. Hjertaker: The new build container ships were done, or we ordered those vessels in 2024. You know, it's typically what we like to do long-term time charters to Investment Grade counterparties, modern technology, that enables and, you know, where we, through the long-term charter, are able to amortize, you know, that investment down significantly. So, we are, you know, we are not specifically focused on one single segment, but we, we try to position us as, logistics partners for, for strong, you know, industrial focused, you know, partners. And then, you know, and then, you know, container ship market has been, an interesting market for us, but we would be happy also to look at other segments. So, yeah.

Operator: Related to different segments, what segment are you currently most optimistic about in relation to potential future growth? i.e., in what niche do you see the best economics?

The, the new build the container ships were were done or we, we ordered those vessels in 2024. Um, you know, it's typically what we like to do, long term time, Charters to investment grade counterparties, uh, modern technology, um, that enables and, you know, where we through the long term, Charter are able to advertise, uh, you know, that investment down significantly. So, um, we are, you know, we are not specifically focused on 1 single segment, uh, but we we try to position us as Logistics partners for for strong. Uh, you know, industrial focused. Uh, you know, partners and then, uh, you know, and then, you know, containership Market has been uh, an interesting market for us. Uh, but we would be happy also to look at other segments. So yeah.

Espen Nilsen Gjøsund: Related to different segments, what segment are you currently most optimistic about in relation to potential future growth? i.e., in what niche do you see the best economics?

Um, related to different segments. What segments are you currently most optimistic about in relation to potential future growth? IE and what Niche. Do you see the best economics?

Ole B. Hjertaker: It's almost an impossible question. I mean, we-- as we look across the board, between the segments, we don't, we don't have any sort of favorite. What we have seen over time is that there have been more longer term charters in typically liner type assets, you know, container ships, car carriers. But we also see that from time to time on tankers, where you see longer term charters and also on dry bulk. And we also have some, you know, chemical carriers in our portfolio, where we also have good interaction with logistics players. So, you know, we look across the board, and hopefully we will build a portfolio, you know, in more than one segment.

Operator: Thank you. We also have a question: What is the status of SFL Composer?

Espen Nilsen Gjøsund: Thank you. We also have a question: What is the status of SFL Composer?

Uh, it's, uh, I would say it's almost an impossible question. I mean we as we look across, uh, the board, uh, between the segments, um, we don't, uh, we don't have any sort of favorite. Uh, what we have seen over time is that there have been more longer term charters in typically liner type assets, uh, you know, container ships car carriers. Uh, but we also see that from time to time on tankers where you see longer term Charters and also on dry bulb and all. We also have some, you know, chemical carriers in our portfolio where we also have good in interaction with Logistics, uh, players. So, uh, you know, we look across the board, um, and um, hopefully we will, we will build the portfolio. Uh, you know, uh, in more than 1 segment.

Thank you.

Trym Sjølie: Right. I think I'll interpret that question as after the collision we had in Q3. So the vessel was going into Dry Dock when she was hit by another container vessel or by a container vessel. She, we were going into Dry Dock anyway at that time, and we had a slot available, so we didn't really lose any time. And all of the damage repairs were covered by insurance, including also the offhire related to the incident. So for SFL, we did not lose really out on this at all. The vessel is now back in service with Volkswagen and operating in the Atlantic as normal.

Trym Otto Sjølie: Right. I think I'll interpret that question as after the collision we had in Q3. So the vessel was going into Dry Dock when she was hit by another container vessel or by a container vessel. She, we were going into Dry Dock anyway at that time, and we had a slot available, so we didn't really lose any time. And all of the damage repairs were covered by insurance, including also the offhire related to the incident. So for SFL, we did not lose really out on this at all. The vessel is now back in service with Volkswagen and operating in the Atlantic as normal.

Uh, we also have a question. What is the status of SFL composer?

Right. I think I'll interpret that question as um, after the uh Collision, we had in Q3. So the vessel was going into Dry Dock when she was hit by another container vessel or buy a container vessel.

She, um, we were going into dry dock anyway.

Uh at that time and we had a slot available so we didn't really lose any time and uh all of the damage repairs were covered by Insurance, including all the fire related to the incident.

So for SFL, we did not lose uh really out on this at all.

uh, the vessel is now back in service with

The, uh, Volkswagen and operating in the, in the Atlantic as, um,

As normal.

Operator: Thank you, Ethan. One last question here. Hi, all. Can you say something about the size of the new rig financing facility?

Espen Nilsen Gjøsund: Thank you, Ethan. One last question here. Hi, all. Can you say something about the size of the new rig financing facility?

Thank you.

Uh, on last question here.

Aksel Olesen: Sure. So you are relating it to the new Hercules facility, and that is being kind of negotiated and prepared, and that's in the amount of $100 million.

Aksel C. Olesen: Sure. So you are relating it to the new Hercules facility, and that is being kind of negotiated and prepared, and that's in the amount of $100 million.

I all, can you say something about the size of the new rig financing facility?

Operator: Thank you, Aksel. As there are no further questions from the audience, I would like to thank everyone for participating in this conference call. If you have any follow-up questions to the management, there are contact details in the press release, or you can get in touch with us through the contact pages on our webpage, www.sflcorp.com. Thank you all.

Espen Nilsen Gjøsund: Thank you, Aksel. As there are no further questions from the audience, I would like to thank everyone for participating in this conference call. If you have any follow-up questions to the management, there are contact details in the press release, or you can get in touch with us through the contact pages on our webpage, www.sflcorp.com. Thank you all.

Sure. Uh, so you are, uh, relating it to the new purchase facility, uh, that you being, you know, uh, regarding, can prepare, and that in the amount of $100 million.

Thank you axle. Uh as there are no further questions from the audience, I would like to thank everyone for participating in this conference call. If you have any follow-up questions to the management, there are contact details in the press release, or you can get in touch with us through the contact pages on our web page.

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