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SFL - Second Quarter 2025 Results

1. Declared quarterly dividend of $0.20 per share, 86th consecutive. 2. Q2 2025 net income at $1.5 million; charter hire reached $194 million. 3. Five-year charter extension with Maersk adds $225 million to backlog. 4. Challenges remain in the drilling rig market, affecting near-term results. 5. Continuous fleet renewal boosts capital but impacts immediate cash flow.

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Why Bullish?

The consistent dividend and strong charter backlog improve investor confidence. Historical trends show that sustained dividends correlate with positive price movements.

How important is it?

The announcement of a steady dividend and positive backlog is crucial for SFL's financial health. A strong focus on portfolio renewal underscores strategic shifts that may attract investors.

Why Short Term?

Immediate effects are likely due to quarterly results and dividend announcement, but market conditions can shift quickly. Recent trends suggest potential volatility in the drilling sector.

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MAERSK.ASTDWGELHOS
Preliminary Q2 2025 results and quarterly cash dividend of $0.20 per share 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 86th consecutive quarterly dividend declared, $0.20 per shareNet income of $1.5 million, or $0.01 per share in the second quarterReceived charter hire1 of $194 million in the quarter, of which approx. 87% of charter hire from shipping and 13% from energyAdjusted EBITDA2 of $104 million from consolidated subsidiaries, of which $97 million from shipping and $7 million from energy. In addition, $8 million adjusted EBITDA2 from associated vessel owning companiesFive 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 WebcastB: 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 Meeting ID: 966 9608 4356Passcode: 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 23114055Aksel C. Olesen, Chief Financial Officer: +47 23114036 Media Contact Ole B. Hjertaker, Chief Executive Officer: +47 23114011 About SFLSFL 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 StatementsThis 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. 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. SFL - Second Quarter 2025 Results

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