Bermudian-based shipping company SFL Corporation reported third-quarter net income of $37.4 million as it announced fleet investments and tanker sales expected to generate a $175 million gain.

Profit rose from $33.8 million in the second quarter, while earnings per share increased to 26 cents from 25 cents. Operating revenues were broadly steady at $201.6 million, compared with $200.8 million in the preceding quarter.

The company declared its 91st consecutive quarterly dividend, of 22 cents per share, payable on or around December 28 to shareholders of record on December 15.

Third-quarter earnings benefited from approximately $13 million in positive valuation movements on hedging derivatives and about $1 million in gains on equity investments.

Operating income fell to $56 million from $65.2 million in the second quarter as vessel and rig operating expenses increased.

SFL agreed to sell four LR2 product tankers and three Suezmax tankers currently chartered to commodities group Trafigura. After profit-sharing settlements and repayment of associated debt, the transactions are expected to generate approximately $275 million in net cash proceeds.

Delivery of the vessels is expected during the fourth quarter of 2026 and first quarter of 2027.

Meanwhile, a seven-year charter extension with Hapag-Lloyd for six container ships added approximately $750 million to contracted revenue, securing fixed-rate employment until 2035–36.

After quarter-end, SFL announced orders for three very large ammonia carriers, scheduled for delivery in 2028, backed by long-term charters adding at least $247 million to its backlog.

It also agreed to acquire two container ships for delivery in the second half of 2027, each commencing an eight-year charter with a major European liner operator.

Including subsequent transactions, SFL reported a fixed-rate charter backlog of approximately $5 billion, with a weighted average remaining term of 7.1 years. About 58 per cent was attributable to investment-grade customers.

The company has 14 vessels under construction, with approximately $1.7 billion in remaining capital expenditure. Deliveries are scheduled from the second half of 2027 through 2029, financed through cash and secured credit facilities.

• This story was generated by machine and edited by The Royal Gazette newsroom