First-quarter net profit at Bermudian-based SFL Corporation Ltd has plummeted year-over-year — from $47 million in 2022 to $6.3 million this year.

SFL, one of the world's largest ship-owning companies, received charter hire of $182.4 million in the quarter, including $4.9 million of profit share.

The company secured a new contract for ultra-deep-water drilling rig Hercules in Namibia for a period of approximately four months with start-up in the fourth quarter of the year, adding approximately $50 million to SFL’s charter backlog.

It announced an extension of contracts for car carriers SFL Composer and SFL Conductor for a minimum period of three years, adding approximately $155 million to the charter backlog.

The board declared a quarterly cash dividend of $0.24 per share, payable on or around June 30 to shareholders of record as of June 16.

Ole B, Hjertaker, the chief executive of SFL Management AS, said: “The first-quarter result was impacted by several one-off items, including the scheduled special survey for the drilling rig Hercules, with significant costs and no revenues in the quarter.

“Following the announcement of new contracts for two of our existing car carriers and also the Hercules, we expect substantial earnings contribution from Q3 onwards from these assets.”