Q2 2024 SFL Corporation Ltd Earnings Call
Welcome to SFL's second quarry 24 conference call. My name is Sander Borgli and I'm Vice President for Investual Relations in SFL.
Sander Borgli: My name is Sander Borgli, and I'm vice-president for Investor Relations at Asacol. (Inaudible) Our CEO, Ole Hjertaker, will start the call with an overview of the second quarter highlights. Then, our Chief Operating Officer, Trym Sjöli, will comment on vessel performance matters, and Paul Barrett, CFO, Aksel Olesen, will take us through the financials. The conference call will be concluded by opening up for questions, and I will explain the procedure to do so prior to the Q&A session.
Speaker Change: Our CEO, Ole Hjertaker, will start the call with an overview of the second quarter highlights. Then, our Chief Operating Officer, Trym Sjlie, will comment on vessel performance matters followed by our CFO, Aksel Olesen, to take us through the financials.
Speaker Change: The conference call will be concluded by opening up questions and now we explain the procedure to do so prior to the Q&A session.
Sander Borgli: 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 expect, anticipate, intend, estimate, or similar expressions are intended to identify these forward-looking statements.
Speaker Change: Before we begin our presentation, I would like to note that this conference call will contain forward-looking statements with its meaning of the U.S. private security, this litigation reform act of 1995.
Speaker Change: Words such as expect, anticipate, intend, estimate, or similar expressions are intended to identify these overlooking statements.
Sander Borgli: 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 a forward-looking statement. 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.
Speaker Change: Public statements are not guarantees of future performance.
Speaker Change: 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 Change: 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.
Sander Borgli: Please refer to our filings with the Securities and Exchange Commission for more detailed discussion of risks and certainties, which may have a direct bearing on operating results and our financial conditions. Then I will leave the word over to our CEO, Ole Hjertaker, with the highlights for his second quarter. Thank you, Sander.
Speaker Change: Please refer to our filings within the Securities and Exchange Commission for more details.
Ole Hjertaker: detailed discussion of risks and certainties, which may have a direct bearing on operating results and our financial condition. Then I will leave the word over to our CEO, Ole Hjertaker, with the highlights for his second quarter.
Ole Hjertaker: We are now announcing our 82nd dividend and have built a unique profile as a maritime infrastructure company with a diversified fleet. We had a full cash flow effect from our car carrier new builds this quarter, but charter revenues from drilling rigs were lower, partly due to US GAAP accounting rules, where mobilization fees received for the transit to Canada and corresponding costs will be recognized in the third quarter. We also coincidentally had Linus out of service most of the quarter in connection with a scheduled periodic survey.
Ole Hjertaker: Thank you, Sander. We are now announcing our 82nd dividend and have built a unique profile as a maritime infrastructure company with a diversified fleet.
Ole Hjertaker: We had full cash flow effect from our car carrier new builds this quarter, but charter revenues from drilling rigs were lower, partly due to U.S. GAAP accounting rules, where mobilization fees received for the transit to Canada and corresponding costs will be recognized in the third quarter.
Ole Hjertaker: We also coincidentally had Linus out of service most of the quarter in connection with a scheduled periodic survey.
Ole Hjertaker: We reported revenues of nearly $200 million this quarter, and the EBITDA equivalent cash flow in the quarter was approximately $131 million. Over the last 12 months, EBITDA equivalent has been $545 million. Net income came in at around $21 million in the quarter, or 16 cents per share.
Ole Hjertaker: We reported revenues of nearly $200 million this quarter and the EBDA equivalent cash flow in the quarter was approximately $131 million.
Ole Hjertaker: Over the last 12 months, the EBITDA equivalent has been $545 million.
Ole Hjertaker: The net income came in at around $21 million in the quarter for 16 cents per share.
Ole Hjertaker: We had a positive contribution relating to profit share on Capesize Vultures of $1.6 million and Fuels Cost Savings of $2.8 million in the quarter. And in line with our commitment to return value to shareholders, we are paying a quarterly dividend of $0.27 per share, or around 9%. Our fixed rate backlog stands at approximately $4.9 billion, and importantly, the backlog is concentrated around long-term charters to very strong end-users. And this backlog figure excludes revenues from vessels trading in the short-term market and also excludes revenue on the new dual-fuel chemical carrier that will operate in a pool with Stolt-Nielsen, and it also excludes future profit share optionality, which we have seen can contribute significantly to our net income.
Ole Hjertaker: We had a positive contribution relating to profit share on capesize blockers of $1.6 million and fuels cost savings of $2.8 million in the quarter.
Ole Hjertaker: And in line with our commitment to return value to shareholders, we are paying a quarterly dividend of $0.27 per share, or around 9% dividend yield.
Ole Hjertaker: Our fixed rate backlog stands at approximately $4.9 billion, and importantly, the backlog is concentrated around long-term charters to very strong end users.
Ole Hjertaker: And this faculty figure excludes revenues from the vessels trading in the short-term market and also excludes revenue on the new dual-fuel chemical carrier that will operate in a pool with Stalk Nielsen.
Ole Hjertaker: and it also excludes future profit-share optionality which we have seen can contribute significantly to our natting calm.
Ole Hjertaker: Most of our vessels are on long-term charters, and we have, in the last 10 years, completely transformed the company's operating model, making us relevant for large end-users like Maersk, Volkswagen Group, and Vittor. And we continue to build the asset portfolio and have taken delivery of four vessels so far this year and expect to take delivery of another three vessels by October. And most of these new vessels have dual fuel propulsion. We have also added massively to the backlog through multiple charter extensions on existing vessels and recently through the ordering of five large container ships in combination with 10-year charters, or COO Trym Sjlie. We'll talk more about this later.
Speaker Change: Thank you very much for watching this video, and I hope you enjoyed this video.
Speaker Change: Most of our vessels are on long-term charters, and we have over the last 10 years completed transform the company's operating model, making us relevant for large end users like Mersk, Volkswagen Group, and Vittal.
Speaker Change: And we continue to build the asset portfolio and have taken delivery of four vessels so far this year, and expect to take delivery of another three vessels by October. And most of these new vessels have dual fuel propulsion.
Speaker Change: We have also added massively to the backlog through multiple charter extensions on existing vessels and recently through the ordering of five large container ships in combination with 10-year charters.
Speaker Change: or CO trim Sjlie, we'll talk more about this later.
Ole Hjertaker: And in order to fuel further growth and build long-term distributable cash flow per share, we raised $100 million in a public offering a few weeks ago. And with that, I will give the word over to our Chief Operating Officer, Trym Sjlie. Thank you, Ola.
Speaker Change: And in order to fuel further growth and build long-term distributable cash flow per share, we raised $100 million in a public offering a few weeks ago.
Speaker Change: And with that, I will give the word over to our Chief Operating Officer, Trym Sjlie.
Trym Sjlie: Including vessels to be delivered, we have 81 maritime assets in our portfolio, and our backlog from owned and managed shipping assets stands at $4.9 billion. The current fleet is made up of 15 dryboat vessels, 39 container ships, 18 tankers, 2 drilling rigs, and 7 car carriers. We have a diversified suite of assets charted out to first class charters on mostly long-term charters. Container Resources is now our largest segment, with just under 50% of the bar. We have, in the last 10 years, completely transformed the company's operating model from wearable pieces to time chargers, and the majority of our customer base is large industrial and users.
Trym Sjlie: Thank you, Ole.
Trym Sjlie: Including vessels to be delivered, we have 81 maritime assets in our portfolio, and our backlog from owned and managed shipping assets stands at $4.9 billion. The current fleet is made up of 15 dryboat vessels,
Trym Sjlie: 39 container ships, 18 tankers, 2 drilling rigs, and 7 car carriers. We have a diversified fleet of assets charted out to first-class charters on mostly long-term charters.
Speaker Change: Content of our source is now our largest segment with just on the 50% of the backlog. We have over the last 10 years completely transformed the company's operating mode from Babel Police's to turn charges on the majority of our customer base is large industrial and youth users.
Trym Sjlie: In the second quarter, 95% of charter revenues from all assets came from time charter contracts and only about 5% from barebolts or dry leases. In addition to fixed rate charter revenues, we've had a significant contribution to cash flow from profit share arrangements over time, both relating to charter rates and cost savings on fuel. In Q2, proper space arrangements contributed $4.3 million. Out of the 81 vessels and rigs, we have 11 container ships on bearable-tide contracts and the rest on time-charter transport trading. In Q2, we had a total of 6,400 operating days, defined as calendar day, less technical, or fire and dry.
Speaker Change: In the second quarter, in 95% of China revenues from all assets came from time to time to contract, and only about 5% from bearables or dry leases.
Speaker Change: In addition to fixed rate charter revenues, we've had significant contribution to cash flow from profit share arrangements over time, both relating to charter rates and cost savings on fuel.
Speaker Change: In Q2, Prof. Spicer range must have contributed.
Speaker Change: $4.3 million
Speaker Change: Out of the 81 vessels and rigs, we have 11 containerships on variable type contracts and the rest on time tracker and spot trading.
Speaker Change: In Q2, we had a total of 6,400 operating days, defined as calendar day, less technical or fire and dry dockings.
Trym Sjlie: Two vessels and one rig have been in dry dock in the quarter. Our overall utilization across the fleet in Q2 was 97.6%, mainly due to these drylocks. The charter revenue from Affleek was $199 million in Q2, which is down from Q1, mainly due to reduced revenues from our two drilling programs. The charter revenue from Affleek was $199 million in Q2 mainly due to reduced revenue from Affleek. Hercules left Namibia in mid-May and commenced operations in Canada in mid-July.
Speaker Change: Two vessels and one rig have been in dry dock in the quarter.
Speaker Change: Our overall utilization across the fleet in Q2 was 97.6% mainly due to these dry lockings.
Speaker Change: The chopper revenue from our fleet was $1199 million in Q2, which is done from Q1 mainly due to reduced revenues from our two drilling weeks.
Speaker Change: Perculus, Ness, Namibia, Midmay, and Command Stoperations in Canada in mid-July. Due to U.S. gap accounting rules, mobilization fees from the Canada campaign, an associated cost are deferred and amortized over the drilling period.
Trym Sjlie: Due to US GAAP accounting rules, mobilization fees from the Canada campaign and associated costs are deferred and amortized over the drilling period. Therefore, we will accordingly record high revenues and costs in the third quarter from Hercules. Linus went in for its 10-year special periodic survey mid-May and spent about 10 weeks in. The rig goes back on rate at the end of July.
Speaker Change: Therefore, we will accordingly record five revenues and costs in the third quarter from Hercules.
Speaker Change: Linus went in for its 10 year special periodic survey in mid-May and spent about 10 weeks in dock for the class survey.
Trym Sjlie: In the third quarter, we expect revenues to be materially higher than in the second quarter from both ruling groups. In July, a judgment was made in the High Court case against Olsi's REFDA Green Ace Charter for 27.4 million US dollars in favor of SFO. Subsequent to this judgment, the all-seas guarantor has become subject to administration, which means there are challenging prospects for recovery of the awarded judges,
Speaker Change: The regal spark on rates and of July. In the third quarter, we expect revenues to be materially higher than in the second quarter from both doing weeks.
Speaker Change: In July, adjustment was made in the high-court case against Ole Sees, Resta Green Ace Charter, for $27.4 million US dollars in favor of Sifo.
Speaker Change: Subsequent to this judgment, the all-seas guarantor has become subject to administration, which means there are challenging prospects for recovery of the awarded judgment.
Trym Sjlie: are currently considering next steps. Our Optics Philosophy is to continuously invest in our fleet to optimize the vessel's performance and maintain a high level of service to our customers. This includes investing to minimize off-fire as well as making investments to increase cargo carrying capacity and reduce energy consumption.
Speaker Change: as it will occurantly considering next steps.
Speaker Change: Our office philosophy is to continue to invest enough fleet to optimize the vessel's performance and maintain a high level of service to our customers.
Speaker Change: This includes investing to minimise all fire as well as making investments of increased coral carrying capacity and reducing energy consumption. Such investments in cooperation with our charterers is important as a way to grow our relationship and increase backlog from existing vessels.
Trym Sjlie: Such investments and cooperation with our charters are important as a way to grow our relationship and increase backlog from existing investments. So far this year, we have increased the backlog to Merce with new five-year charters for seven of our large container vessels, which is a result of our close relationship and cooperation on vessel upgrades and performance announcements. On the back of our container experience, we have also recently placed orders for 5-16,000 TU Dual Fuel LNG containerships in China.
Speaker Change: So far this year we have increased the backlog of commerce with new 58 charges for 7 of our large container vessels, which is a result of close relationship and cooperation on vessel upgrades and performance announcements.
Speaker Change: On the back of our container experience, we have also recently placed orders for 5-16,000 T.U. dual-fuel LMG companionships in China.
Trym Sjlie: These ships will be charted out on 10-year time charters to a leading line of credit. On the Hapag Lloyd charters, the first two upgraded container ships have already been delivered, and the third is scheduled for delivery from the yard this month. On the tanker side, we have delivered the first of three LR2 new buildings to Vito from the yard in China. The second vessel is scheduled for delivery in about one week.
Speaker Change: This ships will be chartered out on 10 year time charters to a leading line of company.
Agloy Charters: On behalf of Agloy Charters, the first two upgraded container ships have been delivered already and the third is scheduled for delivery from the yard this month.
Agloy Charters: On the tanker side, we have delivered the first of three LR2 new buildings to be told from the yard in China. The second vessel is scheduled for delivery in about one week time.
Trym Sjlie: And we are also pleased to announce that we have just this morning taken delivery of the 33,000 Tom Bedway, Chemical Tanker SVL Aruba for deployment in the Stoltank, Poo. We further aim to take delivery of the system as such by the end of the month for delivery to assault under an eight-year time job. I'm now giving the word over to our CFO, Aksel Olesen, who will take us through the financial highlights of the quarter. Thank you, Trym.
Agloy Charters: And we are also pleased to announce that we have just this morning taken delivery of the 33,000-ton bed weight.
Agloy Charters: Chemical Tanker S. Velaruba for deployment in the Stolt tanker's pool. We further aim to take delivery of the sister vessel by the end of the month for delivery to Stolt under an eight-year time charge.
Speaker Change: Thank you very much for watching this video, and I hope you enjoyed this video.
Speaker Change: I'm not giving the word on which you'll see for Aksel Olesen who will take us through the financial highlight of the court.
Aksel Olesen: On this slide, we have shown a performance illustration of cash flows for the second quarter. Please note that this is only a guideline to assess the company's performance and is not in accordance with US GAAP and also not inclusive of extraordinary and non-cash items. The company generated gross charter hire of approximately $199 million during the second quarter, with approximately $90 million coming from our container business. This includes approximately 2.8 million in profit share related to fuel savings and 7 of a large container.
Aksel Olesen: Thank you, Tim. On this slide, there is a former administration of cash flows for a second quarter. Please note that this is only a guideline that says the company's performance, and it's not in accordance with US gap, and also a net of extraordinary and non-cash items.
Speaker Change: The company generated gross charter hire of approximately $199 million during the second quarter, with approximately $90 million coming from our container fleet.
Speaker Change: This includes approximately 2.8 million in profiture related to fuel savings on 7 of a large container of 6.
Aksel Olesen: The car carrier fleet generated approximately 26 million in charter hire, and the tanker fleet generated approximately 30 million in charter hire, in line with the previous quarter, as well as 15 rival carriers, of which eight are employed on long-term charters. The vessels generated approximately 23 million in gross charter hire in the second quarter, including approximately 1.6 million profit share generated from our eight CapeSats vessels on long-term charters to Golden Ocean. The seven vessels employed in the spot insurance market contributed approximately $8.2 million in charter revenue compared to approximately $6.5 million in the first quarter.
Speaker Change: The car carrier fleet generated approximately 26 million of charter hire, and the tanker fleet generated approximately 30 million in charter hire in line with the previous quarter.
Speaker Change: as well as 15 rival carriers of which 8 are employed on long-term charters.
Speaker Change: The vessel's generated approximately 23 million in gross charter hire in the second quarter, including approximately 1.6 million profit share generated from our 8K assessors on long-term charters to gold morphine.
Speaker Change: The 7SOS employees in the spot are from the market, contributed with approximately 1.2 million in Sartor revenue, compared to approximately 6.5 million in the first quarter.
Aksel Olesen: In the second quarter, our energy assets generated approximately $29 million in contract revenues compared to approximately $66 million in the previous quarter. Linus is under a long-term contract with ConocoPhillips in Norway until the end of 2028.
Speaker Change: In the second quarter, our energy assets generated approximately $29 million in contract revenues compared to approximately $66 million in the previous quarter.
Speaker Change: Linus is under a long-term contract with Conco Phillips in Norway until the end of 2028. During the quarter, revenues from the rig were $10 million compared to $19.6 million in the previous quarter, as the rig underwent its 10-year special survey.
Aksel Olesen: During the quarter, revenues from the rig were $10 million compared to $19.6 million in the previous quarter, as the rig underwent its 10-year special service. The regal was back on contract rate at the end of July, as an additional repair scope, which extended the best endocking scope for an additional five weeks. Hercules finalized the contract with Galp Energia in Namibia in mid-May and then spent approximately half of the quarter in mobilization mode, recording approximately $19.4 million in revenues compared to $46.9 million in the first quarter.
Speaker Change: The rig was back on contract rate at the end of July after an additional repair scope, which extended SPS and docking scope by an additional five weeks.
Speaker Change: Pericles finalized the contacts in Galpan and G.A. in the Namiban mid-May, and then spent approximately half of the quarter in mobilization mode, recording approximately 19.4 million of revenues, compared to 46.9 million in the first quarter.
Aksel Olesen: We recommenced the contract with Equinor in Canada in mid-July, and on the U.S. gap, mobilization fees and costs are deferred and amortized over the course of the contract. SFL accordingly recorded lower income and costs on Hercules in the second quarter. Our operating and DNA expenses for the quarter were approximately $70 million, compared to $85 million in the first quarter, mainly due to deferred operating costs of the Hercules, as per the US GAAP accounting treatment just mentioned. The summarizer is to know just a little bit about approximately 131 million compared to 172 million in the previous quarter.
Speaker Change: The recommends the contract with ignoring Canada in mid to lie, and then the U.S. Act, Mobilization Fees, and Costs, or the furlough, and armouredly ties, or the course of the contract, as the fell has a core in the recorded lower income and costs on Hercules in the second quarter.
Speaker Change: Our operating and G&A expenses for the quarter was approximately $70 million, compared to $85 million in the first quarter, mainly due to deferred operating costs of the Hercules, as per the US GAAP accounting treatment just mentioned.
Speaker Change: This summarizes the results of approximately 131 million compared to 122 million in the previous quarter.
Aksel Olesen: Then we move on to the Profit and Loss Statement as reported in the U.S. As described in previous earnings calls, our accounting statements are different from those of a traditional shipping company, and Astro Business Strategy focuses on long-term charter contracts. Therefore, some parts of our activities are classified as capital leases. Therefore, a portion of our chart revenues is excluded from US GAAP operating revenues. This includes repayment of investment in sales-type direct financing leases and leaseback assets and revenues from entities classified as investments in associates for accounting purposes.
Speaker Change: In the new one to the prof. of the statement as we ported on the escape.
Speaker Change: See how this crowd and previous year in schools are counting statements are different from those of a traditional shipping company.
Speaker Change: Our master business strategy focuses on long-term charter contracts. Some parts of our activities are classified as capital leasing.
Speaker Change: Therefore, a portion of our charter revenues are excluded from use gap operating revenues.
Speaker Change: This includes sweet payment of investment in sales type, direct financing visits, and least-back assets, and a revenue instrument that is classified as investment in associates for accounting purposes.
Aksel Olesen: So for the second quarter report, total operating revenues according to US GAAP of approximately $190 million, which is less than approximately $199 million of charter hire actually received for the reasons just mentioned. Now in the quarter, the company recorded profit share income of approximately 4.4 million from fuel savings on the same amount of large-contained vessels for a carcader, or eight-capes-sized vessels, and chartered to golden ore. While revenue from our vessels was in line with the first quarter, both revenues and operating expenses from our energy assets were slower during the quarter for reasons previously mentioned.
Speaker Change: So for the second quarter report, total operating revenues according to US GAAP of approximately $190 million, which is less than approximately $199 million of charter hire actually received for reasons just mentioned.
Speaker Change: During the quarter, the company recorded the profit sharing program for approximately 4.4 million from fuel savings on some of those large container vessels, a car carrier, or 8K size vessels on tractor to build an orphan.
Speaker Change: Our revenue from our vessels were in line with the first quarter. Both revenues and operating expenses from our energy assets were slower during the quarter for reasons previously mentioned.
Aksel Olesen: So overall, and according to USGAP, the company reported a net profit of approximately $20.6 million, or $0.16 per share, compared to approximately $45 million, or $0.36 per share, in the previous quarter. Moving on to the balance sheet, at quarter end, SFL had approximately 186 million in cash and cash equivalents.
Speaker Change: So overall, and according to USGAP, the company reported a net profit of approximately $20.6 million, or $0.16 per share, compared to approximately $45 million, or $0.36 per share, in the previous quarter.
Speaker Change: Moving on to the balance sheet. At quarter end, SFL had approximately 186 million of cash and cash equivalents.
Aksel Olesen: During the quarter, the company arranged a 37 million Jolko financing for a previously debt-free container vessel, Mersk Phuket, at very attractive terms and maturity matching the long-term charter. In terms of CapEx commitments, we have recently acquired five tankers with a total CapEx of approximately 340 million, of which approximately 244 million will be financed with senior bank financing. Two of the vessels have already been delivered, and the three remaining vessels are expected to be delivered during the third and fourth quarters.
Speaker Change: During the quarter, the company arranged as a result of a million york of financing for a pre-isid that free-continuous and most forget that very attractive terms and matured in my single long-term charter.
Speaker Change: In terms of CapEx commitments, we have recently acquired five tankers with a total CapEx of approximately $340 million, of which approximately $244 million will be financed with senior bank financing.
Speaker Change: Two of the vessels have already been delivered. The three remaining vessels expected to be delivered during the third and fourth quarter.
Aksel Olesen: In addition, our harsh environment backup, RIG Linus, recently underwent its 10-year SPS, with an estimated net remaining capital expenditure of approximately $30 million. Due to an additional repair scope, the CAPEX scope increased from approximately 10 million to a total of approximately 40 million. Subsequently, court-rent the company entered into an agreement to build 516,800 T.U. container households to schedule delivery in 2028 at an aggregate construction cost of approximately. The vessels are expected to be funded by a combination of cash at hand and commercial pre-imposed delivery vessel finance.
Speaker Change: In addition, our harsh environment tech group RIG Linus recently underwent its 10-year SPS in the estimated net remaining capital expenditure of approximately $30 million.
Speaker Change: Due to an additional repair scope, the CAPEX scope increased from width approximately 10 million to a total of approximately 40 million.
Speaker Change: Subsequent to quarter-end, the company entered into agreements to build 516,800 TU container vessels with scheduled delivery in 2028 at an aggregate construction cost of approximately 1 billion.
Speaker Change: The vessel, for expected to be funded by combination of cash, attend and commercial pre and post delivery vessel finances.
Aksel Olesen: Furthermore, SFL has recently secured financing commitments for a combined amount of approximately $700 million, effectively covering most secured debt financing commitments maturing over the next 12 months. And finally, the company raised $100 million in net proceeds from a U.S. public offering by issuing $8 million in common shares in July. Based on the Q2 numbers, the company had a book equity ratio of approximately 27%.
Speaker Change: Furthermore, SFL has recently secured financing commitments for a combined amount of approximately 700 million, effectively covering most secured debt financing commitments maturing over the next 12 months.
Speaker Change: And finally, the company raised a hundred million in that process from a U.S. public offering by issuing 8 million commercials in July.
Speaker Change: Based on the Q2 numbers, the company had a book equity ratio of approximately 27%.
Aksel Olesen: Then to conclude, the board has declared the 82nd consecutive cash dividend of 77 cents per share, which represents a dividend yield of approximately 9%. Following recent investments and chart renewals, our fixed chart rate backlog currently stands at $4.9 billion, providing us with strong visibility on our cash flow going forward. The company has a strong balance sheet and liquidity position, and we recently raised a hundred million of gross proceeds in a public offering secured more than one billion in senior secured financing this year to address refinancing of existing results and new acquisitions.
Speaker Change: Then to conclude, the board has declared the 82nd consecutive cash dividend of 77 cents per share, which represents a dividend yield of approximately 9%.
Speaker Change: Following recent investments and chart renewals, our fixed chart rate backlog currently stands at 4.9 billion, providing us with strong visibility on our cash flow going forward.
Speaker Change: The conference has a strong balance sheet and the ability to position and we recently raised a hundred million of course proceed in a public offering and secured more than one billion in senior security financing this year to address real financing of existing vessels and new acquisitions.
Aksel Olesen: And with that, we conclude the presentation, and we move on to the Q and A. Thank you, Aksel. We will now open the floor to a question and answer session. For those of you who are following this presentation through Zoom, please use the raise hand function on the 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 Sheriff Al-Maghrabi.
Speaker Change: And with that, we conclude the presentation and move on to the Q&A session.
Speaker Change: Thank you, Arsid. We will not open to a question and answer session. For those of you who are following this presentation through Zoom, please use the ray sound function on the reactions in the toolbar or gradge question.
Unknown Executive: Please unmute your speaker to ask your question. So first, on the Hercules, that rig is now getting a little bit closer to the end of its existing contracts. And given recent consolidation within the offshore space, are operators becoming more interested in the rig? Or would you say they're still focused on white within their own backlog at the moment?
Speaker Change: When your name is called out, please unmute your speaker to ask your question. Thank you.
Speaker Change: Sander Borgli, Unknown Executive, Ole Hjertaker,
Speaker Change: [inaudible]
Speaker Change: We will have our first question from Sheriff Almagrabi, please let me do a speaker to ask you questions.
Sheriff Almagrabi: Hi, thanks for taking my question.
Speaker Change: First on the Hercules, that rig is now getting a little bit closer to the end of its existing contracts.
Speaker Change: and give it in recent consolidation within the after-states. Our operators becoming more interested in the rig or would you say they're still focused on white.
Unknown Executive: Yeah, thank you. The way, I think it's working now in Canada for Ecuador, doing a really good job there, and got a big fine in Namibia for Galt. So, you know, there's clearly a decent market for rigs of this caliber, but these are specialized assets. We have not concluded any follow-on work from the rig. The rig is expected to go off charter sometime during the fourth quarter. It all depends on, on, call it both the drilling efficiency and the scope of the work that Ecuador wants to do in Canada.
Speaker Change: Within their own backlog at the moment.
Speaker Change: Thank you.
Speaker Change: is working now in Canada for Equinor doing a really good job there, made a big find in Namibia for Gulp. So you know there's there's clearly you know a decent market for rigs of this caliber but these are specialized assets. We have not concluded any follow-on work from the rig. The rig is expected to come off charter.
Speaker Change: some time during the fourth quarter. It all depends on, on quality, both the drilling efficiency and, and the scope or work that Equinor wants to do in Canada.
Speaker Change: So we are in dialogue with various oil companies and potential charters, but have not concluded anything so far and cannot make any specific comments on that until we have something, you know, in place.
Speaker Change: in terms of M&A.
Speaker Change: What we have seen has been more relating to listed companies and consolidation with a primary focus I would think on drill ships.
Speaker Change: and not so much on same as submersibles.
Speaker Change: which is the type of assets that the Hercules is.
Unknown Executive: We see that charter rates are edging up, particularly for ultra-deepwater units, and we have seen some quite strong charters and charter rates over the last few months. So we still believe strongly in the long-term story in this segment, but we cannot be specific on when we will announce a new charter for the Hercules quite yet. Thank you. For those of you who are following this presentation through Zoom, please use the raise your hand function to ask a question.
Speaker Change: But we, of course, following it closely, we see that the charter rates are adding up, particularly for ultra-deaporter units.
Speaker Change: and have seen some quite strong charters and charter rates over the last few months.
Speaker Change: So, we still believe strongly in the long-term story in this segment, but we cannot be specific on when we will announce a new charter for the Hercules quite yet.
Speaker Change: Sander Borgli, Unknown Executive, Ole Hjertaker,
Speaker Change: Sander Borgli, Unknown Executive, Ole Hjertaker,
Speaker Change: Thank you. For those of you who are following this presentation through Zoom, please use the raise hand function to ask a question.
Speaker Change: Sander Borgli, Unknown Executive, Marius Furuly,
Speaker Change: In the next episode, we'll see you in the next episode.
Speaker Change: Sander Borgli, Unknown Executive, Ole Hjertaker,
Unknown Executive: 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 for 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, www.sfieldcorp.com. Thank you. Unknown Executive, Climent Molins, Sander Borgli, Ship Finance International Ltd Thanks for watching! Thanks for watching!!! Thank you for watching!
Speaker Change: 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.svlcorp.com. Thank you.
Speaker Change: [inaudible]
Unknown Executive: So, we are in dialogue with various oil companies and potential charters but have not concluded anything so far and cannot make any specific comments on that until you have something, you know, in place. In terms of M&A... What we have seen has been more relating to listed companies and consolidation with a primary focus, I would think, on drill ships and not so much on semi-submersibles, which is the type of asset that the Hercules is. But We are, of course, following it closely.