CJ Baldoni's questions to SFL Corporation Ltd (SFL) leadership • Q1 2025
Question
CJ Baldoni of Jefferies questioned how long the Hercules rig can remain warm stacked, the payment schedule for the remaining newbuild capital expenditures, and sought clarification on the 27 vessels impacted by the new U.S. port fees under Annex 2 and 3.
Answer
Executive Ole Hjertaker stated the Hercules can remain warm stacked for 'several quarters' under the current plan, which is crucial for its remarketability. CFO Aksel Olesen clarified that significant newbuild payments are not due until Q1 2027. Ole Hjertaker also explained the port fees primarily affect SFL's car carriers and tankers calling on U.S. ports, with the estimated $26M annual cost being passed on to the charterers, and the main focus is on the practical implementation of fee collection.