Arctic: SFL - It’s been a great run; down to Hold

Research evidence excerpt

Arctic: SFL - It’s been a great run; down to Hold

SFL Buy Hold

SFL US | Other Shipping | Equity Company Update | 13 May 2026 | 11:45 Sell

It’s been a great run; down to Hold Financials and estimates changes Target $ 13.40

We opt to downgrade SFL to Hold, following the 6.7% share price appreciation yesterday. Key Figures (USDm) Dec-24 Dec-25 Dec-26e Dec-27e Dec-28e Highlights

While we find the distribution hike compelling and argue that the company’s overall position Recommendation Hold (Buy)

Revenue 904.4 733.0 692.0 805.9 843.0 Target Price $ 13.40

is a lot more robust following the Hercules contract, we find the current valuation too

EBITDA 545.9 405.7 411.0 493.0 508.9 Share Price 12.80

demanding. The running dividend yield currently sits at 6.9%, while the spread to the 10yr EBIT 314.1 143.6 199.1 279.8 284.2 Upside (%) 4.7

treasury is at an all-time low of 2.4%. In the short term, we see limited upside from current EPS 1.02 (0.20) 0.23 0.86 0.82 Market cap (USDm) 1,700

levels. Adj. EBITDA 577.8 438.9 455.5 543.3 560.4 Enterprise Value (m) 2,542

Adj. EBITDA margin (%) 63.9 59.9 65.8 67.4 66.5 Number of shares (USDm) 133

Q1/26: A neutral quarter; helped by dividend lift

Adj. EPS 0.00 0.00 0.00 0.00 0.00

SFL reported a mixed set of Q1 figures. Operational figures came in somewhat below our 12 months share price performance: Revenue growth (%) 20.2 (19.0) (5.6) 16.5 4.6

expectations, mainly driven by us being somewhat optimistic on spot rate achievement combined EPS growth (%) 54.0 (119.8) (214.8) 270.7 (4.8) 16 Performance (%) 3M 6M 1Y

SFL US 26.8% 64.5% 62.4%

OSEBX 24.3% 57.2% 46.8%with one-off SG&A effects, leaving adj. EBITDA -6% below our estimate. Financial gains did 15

however push EPS to 20 cents, above us and consensus at 16 and 4 cents, respectively.