SFL Corporation Ltd.

Earnings Release • Aug 19, 2025

SFL - Second Quarter 2025 Results

SFL - Second Quarter 2025 Results

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Preliminary Q2 2025 results and quarterly cash dividend of $0.20 per share

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Hamilton, Bermuda, August 19, 2025, SFL Corporation Ltd. ("SFL" or the

"Company") today announced its preliminary financial results for the quarter

ended June 30, 2025.

Highlights

* 86(th) consecutive quarterly dividend declared, $0.20 per share

* Net income of $1.5 million, or $0.01 per share in the second quarter

* Received charter hire(1) of $194 million in the quarter, of which approx.

87% of charter hire from shipping and 13% from energy

* Adjusted EBITDA(2) of $104 million from consolidated subsidiaries, of which

$97 million from shipping and $7 million from energy. In addition, $8

million adjusted EBITDA(2) from associated vessel owning companies

* Five year time charter extension for three 9,500 teu container vessels with

Maersk adding approximately $225 million to our backlog from 2026 through

2031

* Continuous fleet renewal during the second quarter and subsequent to quarter

end with the sale and redelivery of older dry bulk and container vessels for

an aggregate amount of more than $200 million

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

«We have taken decisive steps in recent quarters to strengthen our charter

backlog by securing agreements with strong counterparties and deploying high-

quality assets. This includes investments in cargo-handling and fuel-efficiency

upgrades across our existing fleet, while divesting of older, less efficient

vessels. As a result, our fleet's operational and fuel consumption efficiency

has improved materially, delivering benefits to both SFL and our customers.

The market for our legacy drilling rig Hercules remains challenging, with the

recent market uncertainty and oil price volatility delaying new employment

opportunities for the rig. This is impacting our near-term financial results as

we keep the rig warm stacked. We remain optimistic about finding new employment

for the rig and continue to explore strategic opportunities in parallel. At the

same time, we have also sold and redelivered several vessels recently pursuant

to pre-agreed purchase options. While this is increasing our available capital

for new investments significantly, it is also reducing the near-term cash flow

generation. The board has therefore decided to adjust the dividend to 20 cents

per share for the second quarter.

Since our inception in 2004, SFL has distributed $2.9 billion to shareholders

through 86 consecutive quarterly cash dividends. Over this period, we have

consistently demonstrated our ability to renew and diversify our portfolio of

assets and charters, supporting a sustainable, long-term capacity for

shareholder distributions.»

Quarterly Dividend

The Board of Directors has declared a quarterly cash dividend of $0.20 per

share. The dividend will be paid on or around September 29, 2025. The record

date and ex-dividend date on the New York Stock Exchange will be September

12, 2025.

The full report can be found in the link below and at the Company's website

www.sflcorp.com.

Webcast and Presentation

In connection with the earnings release, a webcast will be held today at 10:00

AM (EST) / 4:00 PM (CET)

In order to listen to the webcast and see the presentation, you may do one of

the following:

A: Join Webcast in Listen Only Mode:

Visit the Investor Relations section of the Company's website

at www.sflcorp.com and click on the link to "Webcasts", or access directly via

the webcast link below. The webcast with slideshow will be played from this

platform:

SFL Corporation Ltd. Q2 2025 Webcast

(https://nor01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fconnectstudio

-portal.world-

television.com%2Fen%2F64c901b7ac3efa325c227857&data=05%7C02%7Cespen.gjosund%40sf

lcorp.com%7C12a67ff8c5c441ce748408ddd5a72bbe%7C73cb7203e06f49e08fa31680d8406af5%

7C1%7C0%7C638901636169799452%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlY

iOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&s

data=nCd%2Fqwc1o22nRq3Jn%2B7SbTOR2JHiWNqt7CLymIPcAgc%3D&reserved=0)

(https://nor01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fconnectstudio

-portal.world-

television.com%2Fen%2F64c901b7ac3efa325c227857&data=05%7C02%7Cespen.gjosund%40sf

lcorp.com%7C12a67ff8c5c441ce748408ddd5a72bbe%7C73cb7203e06f49e08fa31680d8406af5%

7C1%7C0%7C638901636169799452%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlY

iOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&s

data=nCd%2Fqwc1o22nRq3Jn%2B7SbTOR2JHiWNqt7CLymIPcAgc%3D&reserved=0)

B: Join Conference Call to Participate in Live Q&A through Zoom:

Join through the Zoom link below to ask a question:

SFL Q2 2025 Q&A

(https://nor01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwtvglobal.zoo

m.us%2Fj%2F96696084356%3Fpwd%3D4RxJ82z3y9Dh5W9cbMBHUyPkJh0oow.1&data=05%7C02%7Ce

spen.gjosund%40sflcorp.com%7C12a67ff8c5c441ce748408ddd5a72bbe%7C73cb7203e06f49e0

8fa31680d8406af5%7C1%7C0%7C638901636169826566%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU

1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%

3D%7C0%7C%7C%7C&sdata=lAqG69dB1zAnc0lMjaOaf5emibA6dUcJG%2F1om%2BlSPW0%3D&reserve

d=0)

Meeting ID: 966 9608 4356

Passcode: 103321

The presentation material used in the webcast may be downloaded at

www.sflcorp.com and replay details are also available at the Company website.

Questions may be directed to SFL Management AS:

Investor and Analyst Contact

Espen Nilsen Gjøsund, Vice President - Investor Relations: +47 47500500

André Reppen, Chief Treasurer & Senior Vice President: +47 23114055

Aksel C. Olesen, Chief Financial Officer: +47 23114036

Media Contact

Ole B. Hjertaker, Chief Executive Officer: +47 23114011

About SFL

SFL has a unique track record in the maritime industry and has paid dividends

every quarter since its initial listing on the New York Stock Exchange in 2004.

The Company's fleet of vessels is comprised of tanker vessels, bulkers,

container vessels, car carriers and offshore drilling rigs. SFL's long term

distribution capacity is supported by a portfolio of long term charters and

significant growth in the asset base over time. More information can be found on

the Company's website: www.sflcorp.com

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statements are

based upon various assumptions, many of which are based, in turn, upon further

assumptions, including SFL management's examination of historical operating

trends, data contained in the Company's records and other data available from

third parties. Although SFL believes that these assumptions were reasonable when

made, because assumptions are inherently subject to significant uncertainties

and contingencies which are difficult or impossible to predict and are beyond

its control, SFL cannot give assurance that it will achieve or accomplish these

expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to

differ materially from those discussed in the forward looking statements include

the strength of world economies, fluctuations in currencies and interest rates,

general market conditions in the seaborne transportation industry, which is

cyclical and volatile, including fluctuations in charter hire rates and vessel

values, changes in demand in the markets in which the Company operates,

including shifts in consumer demand from oil towards other energy sources or

changes to trade patterns for refined oil products, changes in market demand in

countries which import commodities and finished goods and changes in the amount

and location of the production of those commodities and finished goods,

technological innovation in the sectors in which we operate and quality and

efficiency requirements from customers, increased inspection procedures and more

restrictive import and export controls, changes in the Company's operating

expenses, including bunker prices, dry docking and insurance costs, performance

of the Company's charterers and other counterparties with whom the Company

deals, the impact of any restructuring of the counterparties with whom the

Company deals, and timely delivery of vessels under construction within the

contracted price, governmental laws and regulations, including environmental

regulations, that add to our costs or the costs of our customers, potential

liability from pending or future litigation, potential disruption of shipping

routes due to accidents, political instability, terrorist attacks, piracy or

international hostilities, the length and severity of the coronavirus outbreak

and governmental responses thereto and the impact on the demand for commercial

seaborne transportation and the condition of the financial markets, and other

important factors described from time to time in the reports filed by the

Company with the United States Securities and Exchange Commission. SFL disclaims

any intention or obligation to update or revise any forward looking statements,

whether as a result of new information, future events or otherwise, except as

required by law.

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(1) Charter hire represents the amounts billable in the period by the Company

and its associates for chartering out vessels and rigs. This is mainly the

contracted daily rate multiplied by the number of chargeable days plus any

additional billable income, including profit share and attributable mobilization

fees, if any. Long term charter hire relates to contracts undertaken for a

period greater than one year. Short term charter hire relates to contracts

undertaken for a period less than one year, including voyage charters.

(2) 'Adjusted EBITDA' is a non-U.S. GAAP measure. It represents cash receipts

from operating activities before net interest and capital payments.