Cover
Cover | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-32199 |
Entity Registrant Name | SFL Corporation Ltd. |
Entity Central Index Key | 0001289877 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues | ||
Interest income related parties – direct financing leases | $ 382 | $ 4,452 |
Interest income other – sales-type, direct financing leases and leaseback assets | 4,394 | 8,454 |
Service revenue related parties – direct financing leases | 1,746 | 3,258 |
Profit sharing income – related parties | 1,510 | 1,512 |
Profit sharing income – other | 8,125 | 4,717 |
Time charter revenues – related parties | 25,689 | 25,261 |
Time charter revenues – other | 205,775 | 142,739 |
Bareboat charter revenues – related parties | 17,770 | 7,912 |
Bareboat charter revenues – other | 13,195 | 1,290 |
Voyage charter revenues | 24,371 | 24,437 |
Other operating income | 2,729 | 1,858 |
Total operating revenues | 305,686 | 225,890 |
Gain on sale of assets and termination of charters, net | 13,228 | 0 |
Operating expenses | ||
Vessel operating expenses – related parties | 12,826 | 14,740 |
Vessel operating expenses – other | 70,525 | 57,138 |
Depreciation | 91,313 | 60,392 |
Vessel impairment charge | 0 | 1,927 |
Administrative expenses – related parties | 757 | 154 |
Administrative expenses – other | 7,859 | 6,293 |
Total operating expenses | 183,280 | 140,644 |
Net operating income | 135,634 | 85,246 |
Non-operating income / (expense) | ||
Interest income – related parties, long term loans to associated companies | 2,263 | 4,063 |
Interest income – related parties, other | 249 | 233 |
Interest income – other | 433 | 38 |
Interest expense | (50,104) | (48,128) |
Loss on repurchase of bonds | 0 | (697) |
Gain on investments in debt and equity securities | 4,466 | 3,933 |
Other financial items, net | 10,083 | 3,757 |
Net income before equity in earnings of associated companies | 103,024 | 48,445 |
Equity in earnings of associated companies | 1,405 | 2,564 |
Net income | $ 104,429 | $ 51,009 |
Per share information: | ||
Basic earnings per share (in USD per share) | $ 0.82 | $ 0.43 |
Diluted earnings per share (in USD per share) | $ 0.79 | $ 0.43 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 104,429 | $ 51,009 |
Fair value adjustments to hedging financial instruments | 13,677 | 5,497 |
Fair value adjustments to investment securities classified as available-for-sale | 330 | (321) |
Other comprehensive (loss)/income | (120) | 51 |
Other comprehensive income, net of tax | 13,887 | 5,227 |
Comprehensive income | $ 118,316 | $ 56,236 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 223,816 | $ 145,622 |
Restricted cash | 5,714 | 8,338 |
Investments in debt and equity securities | 20,734 | 21,210 |
Due from related parties | 6,584 | 8,557 |
Trade accounts receivable | 10,773 | 11,134 |
Other receivables | 24,483 | 15,444 |
Inventories | 14,262 | 10,124 |
Prepaid expenses and accrued income | 8,266 | 6,403 |
Investment in sales-type leases, direct financing leases and leaseback assets, current portion | 15,544 | 23,484 |
Financial instruments at fair value, current portion | 792 | 0 |
Total current assets | 330,968 | 250,316 |
Vessels and equipment, net | 2,350,247 | 2,230,583 |
Vessels under finance lease, net | 635,587 | 656,072 |
Investment in sales-type leases, direct financing leases and leaseback assets, long-term portion | 111,217 | 181,282 |
Investments in associated companies | 16,584 | 16,635 |
Newbuildings and vessel purchase deposits | 61,769 | 57,093 |
Loans and long term receivables from associated companies | 45,000 | 45,000 |
Financial instruments at fair value, long-term portion | 19,972 | 3,184 |
Other long-term assets | 18,455 | 19,132 |
Total assets | 3,589,799 | 3,459,297 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 760,473 | 302,769 |
Finance lease liability, current portion | 52,397 | 51,204 |
Due to related parties | 1,246 | 1,295 |
Trade accounts payable | 2,984 | 1,770 |
Financial instruments at fair value, current portion | 13 | 738 |
Accrued expenses | 18,849 | 19,794 |
Other current liabilities | 24,226 | 22,746 |
Total current liabilities | 860,188 | 400,316 |
Long-term liabilities | ||
Long-term debt | 1,203,068 | 1,586,445 |
Finance lease liability, long-term portion | 446,426 | 472,996 |
Financial instruments at fair value, long-term portion | 33,559 | 17,209 |
Other long-term liabilities | 4 | 4 |
Total liabilities | 2,543,245 | 2,476,970 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Share capital ($0.01 par value; 300,000,000 shares authorized; 138,551,387 shares issued and outstanding at June 30, 2022). ($0.01 par value; 300,000,000 shares authorized; 138,551,387 shares issued and outstanding at December 31, 2021). | 1,386 | 1,386 |
Additional paid-in capital | 615,913 | 621,037 |
Contributed surplus | 424,562 | 461,818 |
Accumulated other comprehensive income/(loss) | 4,693 | (9,194) |
Accumulated profit/(deficit) | 0 | (92,720) |
Total stockholders’ equity | 1,046,554 | 982,327 |
Total liabilities and stockholders’ equity | $ 3,589,799 | $ 3,459,297 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Stockholders' equity | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 138,551,387 | 138,551,387 |
Common stock, shares outstanding (in shares) | 138,551,387 | 138,551,387 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating Activities | |||
Net cash provided by operating activities | $ 166,707 | $ 124,956 | |
Investing activities | |||
Purchase of vessels, capital improvements and other additions | (179,185) | (4,144) | |
Additions to newbuildings and vessel purchase deposits | (15,675) | (18,783) | |
Proceeds/(payments) from sales of vessels and termination of charters | 83,333 | (519) | |
Net amounts received from/(paid to) associated companies | 1,453 | (588) | |
Proceeds from redemption of available-for-sale debt securities | 5,124 | 0 | |
Proceeds from capital distribution and divestment from equity securities | 0 | 9,608 | |
Collateral deposits paid on swap agreements | (1,058) | (9,300) | |
Net cash used in investing activities | (106,008) | (23,726) | |
Financing activities | |||
Repayment of lease obligation liability | (25,377) | (24,238) | |
Proceeds from issuance of short-term and long-term debt | 255,350 | 252,000 | |
Repayments of short-term and long-term debt | (159,786) | (151,668) | |
Debt fees paid | (2,066) | (3,573) | |
Repurchase of bonds | 0 | (68,146) | |
Shares issued, net of issuance costs | 0 | 83,428 | |
Cash dividends paid | (53,250) | (35,713) | |
Net cash provided by financing activities | 14,871 | 52,090 | |
Net change in cash, restricted cash and cash equivalents | 75,570 | 153,320 | |
Cash, restricted cash and cash equivalents at start of the period | 153,960 | 224,398 | $ 224,398 |
Cash, restricted cash and cash equivalents at end of the period | 229,530 | 377,718 | 153,960 |
Cash, restricted cash and cash equivalents: | |||
Cash and cash equivalents | 223,816 | 371,852 | 145,622 |
Restricted cash | 5,714 | 5,866 | 8,338 |
Cash, restricted cash and cash equivalents at end of the period | $ 229,530 | $ 377,718 | $ 153,960 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Share capital | Additional paid-in capital | Contributed surplus | Accumulated other comprehensive income/(loss) | Accumulated profit/(deficit) |
Shares outstanding starting balance (in shares) at Dec. 31, 2020 | 127,810,064 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued (in shares) | 10,212,876 | |||||
Shares outstanding ending balance (in shares) at Jun. 30, 2021 | 138,022,940 | |||||
Equity starting balance at Dec. 31, 2020 | $ 1,278 | $ 531,382 | $ 539,370 | $ (19,316) | $ (257,063) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued, amount | 102 | 85,259 | ||||
Payments in lieu of issuing shares | (97) | |||||
Amortization of stock-based compensation | 374 | |||||
Equity adjustment arising from reacquisition of convertible notes | (492) | |||||
Dividends declared | (35,713) | 0 | ||||
Fair value adjustments to hedging financial instruments | 5,497 | |||||
Fair value adjustments to available-for-sale securities | (321) | |||||
Other comprehensive (loss)/income | $ 51 | 51 | ||||
Net income | 51,009 | 51,009 | ||||
Equity ending balance at Jun. 30, 2021 | $ 901,320 | $ 1,380 | 616,426 | 503,657 | (14,089) | (206,054) |
Shares outstanding starting balance (in shares) at Dec. 31, 2020 | 127,810,064 | |||||
Shares outstanding ending balance (in shares) at Dec. 31, 2021 | 138,551,387 | 138,551,387 | ||||
Equity starting balance at Dec. 31, 2020 | $ 1,278 | 531,382 | 539,370 | (19,316) | (257,063) | |
Equity ending balance at Dec. 31, 2021 | $ 982,327 | $ 1,386 | 621,037 | 461,818 | (9,194) | (92,720) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued (in shares) | 0 | |||||
Shares outstanding ending balance (in shares) at Jun. 30, 2022 | 138,551,387 | 138,551,387 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued, amount | $ 0 | 0 | ||||
Payments in lieu of issuing shares | 0 | |||||
Amortization of stock-based compensation | 739 | |||||
Equity adjustment arising from reacquisition of convertible notes | 0 | |||||
Dividends declared | (37,256) | (15,994) | ||||
Fair value adjustments to hedging financial instruments | 13,677 | |||||
Fair value adjustments to available-for-sale securities | 330 | |||||
Other comprehensive (loss)/income | $ (120) | (120) | ||||
Net income | 104,429 | 104,429 | ||||
Equity ending balance at Jun. 30, 2022 | $ 1,046,554 | $ 1,386 | $ 615,913 | $ 424,562 | $ 4,693 | $ 0 |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2022 | |
INTERIM FINANCIAL DATA [Abstract] | |
INTERIM FINANCIAL DATA | INTERIM FINANCIAL DATA The unaudited condensed interim financial statements of SFL Corporation Ltd. (“SFL” or the “Company”) have been prepared on the same basis as the Company’s audited financial statements and, in the opinion of management, include all material adjustments, consisting only of normal recurring adjustments considered necessary in order to make the interim financial statements not misleading, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed interim financial statements do not include all of the disclosures required in annual and interim consolidated financial statements and should be read in conjunction with the annual financial statements and notes included in the Annual Report on Form 20-F for the year ended December 31, 2021, which was filed with the SEC on March 24, 2022. The results of operations for the interim period ended June 30, 2022 are not necessarily indicative of the results for the entire year ending December 31, 2022. Basis of accounting The condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the assets and liabilities and results of operations of the Company and its subsidiaries including variable interest entities in which SFL is deemed to be the primary beneficiary. All inter-company balances and transactions have been eliminated on consolidation. The condensed consolidated financial statements are prepared in accordance with the accounting policies described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021. Recently Issued Accounting Standards The following is a brief discussion of a selection of recently released accounting pronouncements that are pertinent to the Company's business: In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU No. 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings ("TDRs") by creditors in Subtopic 310-40, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments are effective for the Company beginning after December 15, 2022. As of period ended June 30, 2022, the Company does not expect the changes prescribed in ASU 2022-02 to have a material impact on its consolidated financial position, results of operations or cash flows, however, we will re-evaluate the amendments based on the facts and circumstances of the Company at the time of implementation of the guidance. In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2022, and are applied prospectively to business combinations that occur after the effective date. The Company will evaluate these amendments based on the facts and circumstances of any future business combinations. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". Accounting Standards Codification (“ASC”) 848 provided temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to reduce the financial reporting burden in light of the market transition from London Interbank Offered Rates (“LIBOR”) and other reference interest rates to alternative reference rates. Under ASC 848, companies can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. The amendments of ASC 848 apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, which clarified the scope of Topic 848 in relation to derivative instruments and contract modifications. The amendments in these updates are elective and are subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in these updates are effective for all entities from March 12, 2020 through to December 31, 2022. The Company has determined that the reference rate reform will impact its floating rate debt facilities and interest rate swaps contracts. In order to preserve the presentation of derivatives consistent with past presentation, the Company expects to take advantage of the expedients and exceptions provided by the ASUs when LIBOR is discontinued and replaced with alternative reference rates. Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity". ASU 2020-06 eliminates the accounting model that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. Consequently, a convertible debt instrument is now accounted for as a single liability measured at its amortized cost or as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the interest rate of convertible debt instruments typically is now closer to the coupon interest rate. ASU 2020-06 also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 also amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The Company adopted this update on January 1, 2022 using the modified retrospective approach, whereby a cumulative effect adjustment was made to reduce retained earnings on January 1, 2022 without any retroactive application to prior periods. The cumulative effect of adopting this guidance was an incremental adjustment of $4.3 million to the Company's opening retained earnings and a $5.9 million reduction to additional paid-in capital as of January 1, 2022. This net adjustment to equity of $1.6 million is solely in respect of its 4.875% senior unsecured convertible notes due 2023 and resulted in a corresponding decrease in the deferred debt issuance costs of the notes (see Note 14: Share Capital, Additional Paid-In Capital and Contributed Surplus). Also, as the Company already uses the average market price for share price quotations and the if-converted method for its convertible instruments in the computation of the diluted earnings per share, the other amendments in ASU 2020-06 did not have any impact on the Company. Significant Accounting Policies - Update Our significant accounting policies are described in "Note 2: Accounting Policies" of our Annual Report on Form 20-F for the year ended December 31, 2021 . Our updated significant accounting policies described below reflect the impact of adopting ASU 2020-06. Convertible notes Through December 31, 2021 , the Company separately accounted for the liability and equity components of the Convertible Notes at issuance. The debt issuance costs related to the issuance of the Convertible Notes were also previously allocated to the liability and equity components based on their relative values. With the adoption of ASU 2020-06, on January 1, 2022, amounts for convertible notes, including debt issuance costs, that were previously classified within equity are now reclassified to the liability component, net of any remaining unamortized amounts. Debt issuance costs are amortized to interest expense, on a straight-line basis, over the term of the relevant convertible notes. (See also "Recently Adopted Accounting Standard" above). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management of the Company believes that the accounting estimates and assumptions that have been made are appropriate given the continuing uncertainties surrounding the severity and duration of the impacts of the COVID-19 pandemic. However actual results could differ materially from those estimates. |
GAIN_(LOSS) ON SALE OF ASSETS A
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS | GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS During the six months ended June 30, 2022, the two very large crude carriers (“VLCC”) Front Energy and Front Force , which were accounted for as direct financing leases, were sold to an unrelated third party. A gain of $1.5 million was recorded on the disposal of the vessels. The Company received net sale proceeds of $65.4 million and $4.5 million in compensation from Frontline Shipping Limited (“Frontline Shipping”), for early termination of the corresponding charters. (See Note 17: Related Party Transactions). Also, during the six months ended June 30, 2022, the 1,700 twenty-foot equivalent unit (“TEU”) container vessel, MSC Alice , which was accounted for as a sales-type lease, was sold and delivered to Mediterranean Shipping Company S.A. and its affiliate Conglomerate Shipping Ltd. (“MSC”) following execution of the applicable purchase obligation in the charter contract. A gain of $11.7 million was recorded on the disposal. The Company received net sale proceeds of $13.5 million, including profit share. In February 2022, the Company agreed to make changes to the chartering and management structure of the harsh environment jack-up drilling rig West Linus . The rig was delivered to the Company in 2014, and is currently operated by a subsidiary of Seadrill Limited (“Seadrill”) and employed on a long-term drilling contract with ConocoPhillips Skandinavia AS (“ConocoPhillips”) in the North Sea until the fourth quarter of 2028. The Company, Seadrill and ConocoPhillips reached an agreement in which the drilling contract with ConocoPhillips is expected to be assigned from the current Seadrill operator to one of the subsidiaries of the Company, upon the receipt of the necessary regulatory approvals. Upon effective assignment of the drilling contract, SFL will receive charter hire for the rig directly from ConocoPhillips and pay for operating and management expenses. SFL has simultaneously entered into an agreement for the operational management of the rig with a subsidiary of Odfjell Drilling Ltd. (“Odfjell”), a leading harsh environment drilling rig operator. The change of operational management from Seadrill to Odfjell is subject to customary regulatory approvals relating to operations on the Norwegian Continental Shelf. Until the approvals are in place, Seadrill will continue the existing charter arrangements for a period of up to approximately nine months. The bareboat charter rate from Seadrill in this transition period will be approximately $55,000 per day. In August 2021, the Company entered into an amendment to its existing charter agreement (the “amendment agreement”) with subsidiaries of Seadrill for the harsh environment semi-submersible rig West Hercules , which was approved by the applicable bankruptcy court in September 2021. Each of SFL’s financing banks consented to the amendment agreement, and SFL’s limited corporate guarantee of the outstanding debt of the rig owning subsidiary remains unchanged at $83 million. Additionally, SFL agreed to a cash contribution of $5 million to SFL Hercules’s pledged earnings account at the time of redelivery following the termination of the Seadrill charter, in addition to a $3 million payable by Seadrill. In May 2022, SFL entered into an agreement for the operational management of the West Hercules rig with a subsidiary of Odfjell to perform commercial and operational management of the rig upon redelivery of the rig from Seadrill expected in the second half of 2022. The rig is already being marketed for new charter opportunities in 2023 immediately following completion of its special periodic survey planned for early 2023. Also in connection with Seadrill’s previously announced Chapter 11 proceedings, the lease relating to West Taurus was rejected by the court in March 2021 and the rig was redelivered by Seadrill to SFL in the second quarter of 2021. In March 2021, the Company signed an agreement for the recycling of the rig at a facility in Turkey and delivered the rig to the recycling facility in September 2021. The asset was derecognized on disposal and a net loss of $0.6 million was recorded in relation to the recycling of the rig during the year ended December 31, 2021. There were no other vessels or rigs sold or charters terminated during the six months ended June 30, 2022 and June 30, 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The computation of basic earnings per share (“EPS”) is based on the weighted average number of shares outstanding during the period and the consolidated net income of the Company. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. In the computation of the diluted EPS, the dilutive impact of the Company’s stock options is calculated using the "treasury stock" guidelines and the "if-converted" method is used for convertible securities. The components of the numerator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Basic earnings per share: Net income available to stockholders 104,429 51,009 Diluted earnings per share: Net income available to stockholders 104,429 51,009 Interest and other expenses attributable to dilutive convertible notes 3,747 (206) Net income assuming dilution 108,176 50,803 The components of the denominator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands) June 30, 2022 June 30, 2021 Basic earnings per share: Weighted average number of common shares outstanding* 126,786 117,421 Diluted earnings per share: Weighted average number of common shares outstanding* 126,786 117,421 Effect of dilutive share options 38 — Effect of dilutive convertible notes 10,476 15 Weighted average number of common shares outstanding assuming dilution 137,300 117,436 Six months ended June 30, 2022 June 30, 2021 Basic earnings per share: $ 0.82 $ 0.43 Diluted earnings per share: $ 0.79 $ 0.43 *The weighted average number of common shares outstanding excludes 8,000,000 shares issued as part of a share lending arrangement relating to the Company's issuance of 5.75% senior unsecured convertible notes in October 2016. After the maturity of these bonds, the Company entered into a general share lending agreement with another counterparty and the 8,000,000 shares were transferred into its custody. The weighted average number of common shares outstanding also excludes 3,765,842 shares issued as of June 30, 2022 from up to 7,000,000 shares issuable under a share lending arrangement relating to the Company's issuance of 4.875% senior unsecured convertible notes in April and May 2018. These 3,765,842 shares, which were issued and loaned, are owned by the Company and are to be returned on or before maturity of the bonds in 2023, pursuant to the terms of the applicable share lending arrangement, however the Company may enter into additional lending arrangements in respect of these shares upon the maturity of the existing lending arrangement. |
OTHER FINANCIAL ITEMS
OTHER FINANCIAL ITEMS | 6 Months Ended |
Jun. 30, 2022 | |
Other Financial Items [Abstract] | |
OTHER FINANCIAL ITEMS | OTHER FINANCIAL ITEMS Other financial items, net comprise of the following items: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Net cash movement on non-designated derivatives and swap settlements (1,692) (3,558) Net gain in fair value movements of non-designated derivatives 12,718 6,937 Change in allowance for expected credit losses 582 716 Other items (1,525) (338) Total other financial items, net 10,083 3,757 The net movement in the fair values of non-designated derivatives and net cash payments thereon relate to non-designated, terminated or de-designated interest rate swaps and cross currency interest rate swaps. Changes in the fair values of the effective portion of interest rate swaps that are designated as cash flow hedges are reported under "Other comprehensive income". The Company recognizes, among other things, a measurement of expected credit losses for financial assets held at the reporting date, based on historical experience, current conditions and reasonable supportable forecasts. (See also Note 18: Allowance for Expected Credit Losses). Other items in the six months ended June 30, 2022 include a net loss of $1.3 million arising from foreign currency translations (in the six months ended June 30, 2021: gain of $0.1 million). Other items included in other financial items include bank charges and fees relating to loan facilities. |
INVESTMENTS IN DEBT AND EQUITY
INVESTMENTS IN DEBT AND EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN DEBT AND EQUITY SECURITIES | INVESTMENTS IN DEBT AND EQUITY SECURITIES Investment securities held by the Company consist of the following investments in corporate bonds and equity securities: (in thousands of $) June 30, 2022 December 31, 2021 Corporate Bonds 6,315 9,680 Equity Securities 14,419 11,530 Total Investment in Debt and Equity Securities 20,734 21,210 Corporate Bonds The corporate bonds are classified as available-for-sale securities and are recorded at fair value, with unrealized gains and losses recorded as a separate component of "Other comprehensive income". Six months ended June 30, 2022 Year ended December 31, 2021 (in thousands of $) Amortized Cost Unrealized gains/(losses) Fair value Amortized Cost Unrealized gains/(losses) Fair value Corporate bonds: NorAm Drilling Bond 4,132 487 4,619 4,132 487 4,619 NT Rig Holdco Liquidity 12% 1,222 474 1,696 4,917 144 5,061 NT Rig Holdco 7.5% — — — — — — Oro Negro 7.5% — — — — — — Total corporate bonds 5,354 961 6,315 9,049 631 9,680 The existing Oro Negro Drilling Pte. Ltd. (“Oro Negro”) 12% and 7.5% bonds underwent a debt restructuring in 2020 that resulted in the recognition of NT Rig Holdco Pte. Ltd (“NT Rig Holdco”) Liquidity 12% bonds and NT Rig Holdco 7.5% bonds and the redemption of the Oro Negro 12% bonds in full and a substantial proportion of the Oro Negro 7.5% bonds. The Company recorded no gain or loss on the redemption of the bonds. During the year ended December 31, 2021, the Company acquired additional NT Rig Holdco Liquidity 12% bonds for a total purchase price of $1.4 million. During the year ended December 31, 2021, an aggregate impairment loss of $0.8 million was recorded against the Oro Negro 7.5% bonds and the NT Rig Holdco 7.5% bonds. During the six months ended June 30, 2022 , the Company received $5.1 million from the partial redemption of NT Rig Holdco Liquidity 12% bonds, following the sale of five jack up rigs by NT Rig Holdco. A gain of $1.4 million was recognized in the Statement of Operations in relation to the redemption of the bonds. The remaining balance of $1.7 million as of June 30, 2022 represents further redemptions expected on the bond. Equity Securities Changes in the fair value of equity investments are recognized in net income. (in thousands of $) June 30, 2022 December 31, 2021 Frontline 12,830 10,238 NorAm Drilling 1,589 1,292 Total Equity Securities 14,419 11,530 Equity Securities pledged to creditors 12,830 10,238 In March 2021, the Company received a capital dividend of approximately $8.8 million from ADS Maritime Holding Plc (“ADS Maritime Holding”) following the sale of its remaining two vessels. Also in March 2021, the Company sold all of its remaining shares in ADS Maritime Holding for a consideration of $0.8 million and recognized a gain of $0.7 million in the Statement of Operations in relation to the disposal d uring the year ended December 31, 2021 . Equity Securities Pledged to Creditors As of June 30, 2022, the Company held approximately 1.4 million shares of Frontline Ltd. ("Frontline") , a related party (December 31, 2021: 1.4 million shares). (Refer to Note 17: Related Party Transactions). In December 2019, the Company entered into a forward contract to repurchase 3.4 million shares of Frontline in June 2020 for $36.8 million. During the year ended December 31, 2020, the Company repurchased and simultaneously sold approximately 2.0 million shares in Frontline for total proceeds of $21.1 million and recorded gains of $2.3 million in the Statement of Operations in respect of the sales. The Company has continuously renewed the forward contract and as of June 30, 2022, the Company had a forward contract, which expired in July 2022, to repurchase 1.4 million shares of Frontline (December 31, 2021: 1.4 million shares) at a repurchase price of $16.6 million (December 31, 2021: $16.4 million), including deemed accrued interest. In July 2022, the forward contract to repurchase 1.4 million shares of Frontline, was rolled over to September 2022, at a repurchase price of $16.7 million. The transaction has been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability of $15.6 million recorded within debt at June 30, 2022 (December 31, 2021: $15.6 million). (See also Note 12: Short-Term and Long-Term Debt and Note 19: Commitments and Contingent Liabilities). |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2022 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels and Equipment, net Balance as of December 31, 2021 2,782,909 (552,326) 2,230,583 Depreciation — (70,828) (70,828) Vessel additions 190,000 — 190,000 Capital improvements 492 — 492 Balance as of June 30, 2022 2,973,401 (623,154) 2,350,247 The capital improvements of $0.5 million relate to exhaust gas cleaning systems ("EGCS" or "scrubbers") and ballast water treatment systems (“BWTS”) installed on one vessel during the six months ended June 30, 2022. During the six months ended June 30, 2022, the Company took delivery of two Suezmax tankers and two LR2 product tankers for a total acquisition price of $190.0 million. Upon delivery, all four vessels immediately commenced their long term charters. No impairment losses were recorded against the carrying value of Vessels and Equipment, net in the six months ended June 30, 2022 and June 30, 2021. As of June 30, 2021, the rig West Taurus |
NEWBUILDINGS AND VESSEL PURCHAS
NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS | NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS As of June 30, 2022, the Company had paid total installments and related costs of $30.1 million (December 31, 2021: $14.9 million) in relation to two dual-fuel 7,000 car equivalent unit (“CEU”) newbuilding car carriers, currently under construction. The vessels are expected to be delivered in 2023 and will immediately commence a 10-year period time charter with Volkswagen Group. As of June 30, 2022, the Company had paid total installments and related costs of $31.7 million (December 31, 2021: $31.2 million) in relation to another two dual-fuel 7,000 CEU newbuilding car carriers, currently under construction. The vessels are expected to be delivered in 2024 and will immediately commence a 10-year period time charter with K Line. During the year ended December 31, 2021, the Company paid a deposit of $11.0 million in connection with the acquisition of two Suezmax tankers. The deposit was reclassified to "Vessels and Equipment, net" upon delivery of the vessels in January and February 2022. (See Note 6: Vessels and Equipment, net). |
VESSELS UNDER FINANCE LEASE, NE
VESSELS UNDER FINANCE LEASE, NET | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
VESSELS UNDER FINANCE LEASE, NET | VESSELS UNDER FINANCE LEASE, NET Movements in the six months ended June 30, 2022 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels under Finance Lease, net Balance as of December 31, 2021 777,939 (121,867) 656,072 Depreciation — (20,485) (20,485) Balance as of June 30, 2022 777,939 (142,352) 635,587 As of June 30, 2022, seven vessels were accounted for as vessels under finance lease, which consist of four 14,000 TEU container vessels and three 10,600 TEU container vessels. (See also Note 16: Finance Lease Liability). |
INVESTMENTS IN SALES-TYPE LEASE
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
Lessor, Sales-Type Leases, Direct Financing Leases, And Leaseback Assets | INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS The following lists the components of investments in sales-type leases, direct financing leases and leaseback assets as of June 30, 2022 and December 31, 2021: (in thousands of $) June 30, 2022 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 38,112 38,668 76,780 Net minimum lease payments receivable 38,112 38,668 76,780 Estimated residual values of leased property (unguaranteed) 43,150 31,500 74,650 Less : unearned income (9,472) (14,971) (24,443) Total investment in sales-type lease, direct financing lease and leaseback assets 71,790 55,197 126,987 Allowance for expected credit losses* (110) (116) (226) Total investment in sales-type lease, direct financing lease and leaseback assets 71,680 55,081 126,761 Current portion 10,450 5,094 15,544 Long-term portion 61,230 49,987 111,217 (in thousands of $) December 31, 2021 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 120,411 43,103 163,514 Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (34,128) — (34,128) Net minimum lease payments receivable 86,283 43,103 129,386 Estimated residual values of leased property (unguaranteed) 79,621 31,500 111,121 Less: unearned income (17,532) (16,946) (34,478) Total investment in sales-type lease, direct financing lease and leaseback assets 148,372 57,657 206,029 Allowance for expected credit losses* (1,142) (121) (1,263) Total investment in sales-type lease, direct financing lease and leaseback assets 147,230 57,536 204,766 Current portion 18,436 5,048 23,484 Long-term portion 128,794 52,488 181,282 *See Note 18: Allowance for Expected Credit Losses. As of June 30, 2022, the Company had a total of nine vessel charters accounted for as sales-type and direct financing leases (December 31, 2021: 12 vessels) and one vessel charter classified as a leaseback asset (December 31, 2021: one vessel). Investments in sales-type and direct financing leases As of December 31, 2021, the Company had two VLCCs accounted for as direct financing leases, which were on long-term, fixed rate charters to Frontline Shipping. Frontline Shipping is a wholly owned subsidiary of Frontline, a related party. The terms of the charters did not provide Frontline Shipping with an option to terminate the charters before the end of their terms. In April 2022, the Company sold the two VLCCs on charter to Frontline Shipping, to an unrelated third party. (See also Note 2: Gain on Sale of Assets and Termination of Charters). As of June 30, 2022, the Company had nine (December 31, 2021: 10) container vessels accounted for as sales-type leases, all of which are on long-term bareboat charters to MSC. The terms of the charters for the nine container vessels provide the charterer with a minimum fixed price purchase obligation at the expiry of each of the charters. In April 2022, the Company sold and redelivered one 1,700 TEU container vessel to MSC, following the end of the vessel's bareboat charter. (See also Note 2: Gain on Sale of Assets and Termination of Charters). Investments in leaseback assets When a sale and leaseback transaction does not qualify for sale accounting, the Company does not recognize the transferred vessels and instead accounts for the purchase as a leaseback asset. |
INVESTMENTS IN ASSOCIATED COMPA
INVESTMENTS IN ASSOCIATED COMPANIES | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
INVESTMENTS IN ASSOCIATED COMPANIES | INVESTMENT IN ASSOCIATED COMPANIES The Company has certain subsidiaries which are accounted for using the equity method, as it has been determined under ASC 810 that they are variable interest entities in which SFL is not the primary beneficiary. As of June 30, 2022, June 30, 2021 and December 31, 2021, the Company had the following participation in investments that were recorded using the equity method: June 30, 2022 June 30, 2021 December 31, 2021 River Box Holding Inc. (“River Box”) † 49.90 % 49.90 % 49.90 % SFL Hercules Ltd. (“SFL Hercules”) * 100.00 % * † River Box was a previously wholly owned subsidiary of the Company. River Box holds investments in direct financing leases, through its subsidiaries, in relation to the 19,200 and 19,400 TEU containerships MSC Anna , MSC Viviana , MSC Erica and MSC Reef . On December 31, 2020, the Company sold 50.1% of the shares of River Box to a subsidiary of Hemen Holding Limited (“Hemen”), our largest shareholder and a related party, and has accounted for the remaining 49.9% ownership in River Box using the equity method. * SFL Hercules, a wholly-owned subsidiary of the Company, owns the drilling unit West Hercules which is on charter to a subsidiary of Seadrill, previously a related party. SFL determined that Seadrill was no longer a related party following its emergence from bankruptcy in February 2022. (See Note 17: Related Party Transactions). SFL Hercules was previously determined to be a variable interest entity for which the Company was not the primary beneficiary and thus accounted for using the equity method. During the year ended December 31, 2021 and following amendments to the West Hercules bareboat charter and loan facility agreements, SFL Hercules was determined to no longer be a variable interest entity and was consolidated from August 27, 2021 when the amendments were approved by the applicable bankruptcy court (see below). In August 2021, the Company entered into the amendment agreement with a subsidiary of Seadrill for the harsh environment semi-submersible rig West Hercules . Under the amendment agreement with Seadrill, the West Hercules is contracted to be employed with an oil major until the second half of 2022 (the “charter period”), prior to being redelivered to SFL in Norway. Pursuant to the amendment agreement, SFL agreed to receive bareboat hire of (i) approximately $64,700 per day until Seadrill emerged from Chapter 11 on February 22, 2022 ("Emergence Date") and (ii) following the Emergence Date, approximately $60,000 per day while the rig is employed under a contract and generating revenues for Seadrill and approximately $40,000 in all other scenarios, including when the rig is idle or undergoing mobilization or demobilization. Pursuant to the amendment agreement, Seadrill agreed to fund the mobilization and demobilization of the rig, which is expected to occur during the charter period. Each of SFL’s financing banks consented to the amendment agreement, and SFL’s limited corporate guarantee of the outstanding debt of the rig owning subsidiary remains unchanged at $83 million. Additionally, SFL agreed to a cash contribution of $5 million to SFL Hercules’s pledged earnings account at the time of redelivery following the termination of the Seadrill charter, in addition to a $3 million payable by Seadrill. Following these amendments and as of June 30, 2022, SFL Hercules was in compliance with its debt covenants. Summarized balance sheet information of the Company’s equity method investees is as follows: As of June 30, 2022 (in thousands of $) TOTAL River Box Share presented 49.90 % Current assets 14,417 14,417 Non-current assets 241,137 241,137 Total assets 255,554 255,554 Current liabilities 13,609 13,609 Non-current liabilities 225,361 225,361 Total liabilities 238,970 238,970 Total stockholders’ equity 16,584 16,584 As of December 31, 2021 (in thousands of $) TOTAL River Box Share presented 49.90 % Current assets 13,987 13,987 Non-current assets 247,361 247,361 Total assets 261,348 261,348 Current liabilities 13,242 13,242 Non-current liabilities 231,471 231,471 Total liabilities 244,713 244,713 Total stockholders’ equity 16,635 16,635 Summarized statement of operations information of the Company’s equity method investees is as follows: Six months ended June 30, 2022 (in thousands of $) TOTAL River Box Share presented 49.90 % Operating revenues 9,665 9,665 Net operating revenues 9,654 9,654 Net income 1,405 1,405 Six months ended June 30, 2021 (in thousands of $) TOTAL River Box SFL Hercules Share presented 49.90 % * Operating revenues 20,141 10,076 10,065 Net operating revenues 15,082 10,065 5,017 Net income 2,564 1,819 745 * From August 27, 2021, SFL Hercules ceased to be accounted for as an associate and became consolidated by the Company (see further details above). As required by ASU 2016-13 ' Financial Instruments - Credit Losses' from January 2020, the associated companies recognized an allowance for expected credit losses in respect of their principal financial assets : 'Investment in d irect f inanc ing l ease s ' and 'Related p arty r eceivable balances', held at the reporting date , which are within the scope of the ASU. Movements in the six months ended June 30, 2022 in the allowance for expected credit losses can be summarized as follows: (in thousands of $) TOTAL River Box Share presented 49.90 % Balance as of December 31, 2021 396 396 Allowance recorded in net income of associated companies (9) (9) Balance as of June 30, 2022 387 387 The Company has estimated the allowance for expected credit losses based on an analysis of factors including the credit rating assigned to the lessee, management ' s assessment of current and expected conditions in the market and calculated collateral exposure. In the six months ended June 30, 2022, River Box paid a dividend of $1.5 million to SFL (June 30, 2021: $0.7 million, December 31, 2021: $2.2 million). In the six months ended June 30, 2021 and the year ended December 31, 2021, SFL Hercules did not pay any dividends. |
OTHER LONG TERM ASSETS
OTHER LONG TERM ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER LONG TERM ASSETS | OTHER LONG TERM ASSETS Other long term assets comprise of the following items: (in thousands of $) June 30, 2022 December 31, 2021 Capital improvements in progress 284 591 Collateral deposits on swap agreements 12,000 10,368 Value of acquired charter-out contracts, net 6,171 7,607 Other — 566 Total Other Long Term Assets 18,455 19,132 Capital improvements in progress comprise of advances paid and costs incurred in respect of vessel upgrades in relation to BWTS on two vessels (2021: three vessels). This is recorded in other long term assets until such time as the equipment is installed on the vessel, at wh ich point it is transferred to "Vessels and Equipment, net" or "Investment in Sales-type Leases and Direct Financing Leases". In the six months ended June 30, 2022, the Company transferred costs of $0.5 million in respect of one vessel to "Vessels and Equipment, net". No costs were transferred to "Vessels under Finance Lease, net" in the six months ended June 30, 2022. Collateral deposits exist on our interest rate, cross currency interest rate and currency swaps. Further amounts may be called upon during the term of the swaps, if interest rates or currency rates move adversely. The Company purchased four container vessels, Thalassa Mana , Thalassa Tyhi , Thalassa Doxa and Thalassa Axia, with each vessel subject to pre-existing time charters. A value of $18.0 million was assigned to these charters on acquisition in 2018. During the six months ended June 30, 2022, the amortization charged to time charter revenue was $1.4 million (six months ended June 30, 2021: $1.4 million). Other long term assets previously included $1.9 million of loan notes receivables due from third parties in relation to the early termination of charters. Following the adoption of ASU 2016-13 from January 1, 2020, the Company recognized a credit loss provision totaling $1.9 million against this long term receivables balance thereby resulting in a net balance of $0.0 million from December 31, 2020. There was no movement to the foregoing during the six months ended June 30, 2022 and June 30, 2021. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2022 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Debt Disclosure [Text Block] | SHORT-TERM AND LONG-TERM DEBT (in thousands of $) June 30, 2022 December 31, 2021 Long-term debt: NOK700 million senior unsecured floating rate bonds due 2023 70,930 79,507 NOK700 million senior unsecured floating rate bonds due 2024 70,423 78,939 NOK600 million senior unsecured floating rate bonds due 2025 54,717 61,334 4.875% senior unsecured convertible notes due 2023 137,900 137,900 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 150,000 Lease debt financing 167,409 126,955 Borrowings secured on Frontline shares 15,639 15,639 Total Fixed Rate and Foreign Debt 667,018 650,274 U.S. dollar denominated floating rate debt due through 2029 1,308,592 1,253,481 Total debt principal 1,975,610 1,903,755 Less: Unamortized debt issuance costs (12,069) (14,541) Less: Current portion of long-term debt (760,473) (302,769) Total long-term debt 1,203,068 1,586,445 Movements in the period: (in thousands of $) Fixed Rate and Foreign Debt U.S. Dollar Floating Rate Debt Total debt principal Balance as of December 31, 2021 650,274 1,253,481 1,903,755 Drawdowns 48,750 206,600 255,350 Repayments and redemptions (8,297) (151,489) (159,786) Effects of foreign exchange (23,709) — (23,709) Balance as of June 30, 2022 667,018 1,308,592 1,975,610 Interest rate information: June 30, 2022 December 31, 2021 Weighted average interest rate* 3.61 % 2.68 % US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate 2.29 % 0.21 % Secured Overnight Financing Rate ("SOFR"), closing rate 1.50 % 0.05 % Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate 1.68 % 0.95 % *The weighted average interest rate is for floating rate debt denominated in U.S. dollars and Norwegian kroner (“NOK”) which takes into consideration the effect of related interest rate swaps. New Facilities, Renewals and Redemptions Fixed Rate and Foreign Debt Redemptions During the six months ended June 30, 2021, a net loss of $0.7 million was recorded in respect of the repurchase of $2.0 million of its 4.875% senior unsecured convertible notes due 2023 and $65.3 million of its 5.75% senior unsecured convertible notes due 2021. No such gains or losses were recorded during the six months ended June 30, 2022. New Facilities Lease debt financing In April 2022, the wholly owned subsidiaries of the Company owning two 6,500 CEU car carriers entered into sale and leaseback transactions for these vessels, through a Japanese operating lease with call option financing structure. The sales prices for the vessels were $23.5 million and $25.3 million . The vessels were leased back for a term of approximately three years, with options to purchase each vessel at the end of the third year. The transactions did not qualify as sales and have been recorded as financing arrangements. The net amounts outstanding as of June 30, 2022 were $22.8 million and $24.5 million respectively. U.S. Dollar Floating Rate Debt New facilities drawn down between January 1, 2022 and June 30, 2022: Name of facility Draw down Number of wholly owned subsidiaries entering into the facility Term Balance outstanding at period end $107.25 million term loan facility* Dec. 2021 - Feb. 2022 three 5 years 105.2 $35 million term and revolving loan facility Feb. 2022 two 3 years — $100 million term loan facility Mar. 2022 four 5 years 97.5 *The total balance of this facility drawn down in the six months ended June 30, 2022 was $71.5 million. The Company has provided limited corporate guarantees for the above facilities, which bear interest at LIBOR plus a margin or the compounded daily SOFR plus a margin. Facilities redeemed between January 1, 2022 and June 30, 2022: Name of facility Original draw down date Number of wholly owned subsidiaries that had entered into the facility Original Term Amount redeemed $50 million secured term loan facility Feb. 2019 three 4 years 35.2 $29.5 million term loan facility Mar. 2019 two 5 years 18.0 $35 million term and revolving loan facility Feb. 2022 two 3 years 35.1 Agreements related to long-term debt provide limitations on the amount of total borrowings and secured debt, and acceleration of payment under certain circumstances, including failure to satisfy certain financial covenan ts. As of June 30, 2022, the Company was in compliance with all of the covenants under its long-term debt facilities. Borrowings secured on Frontline shares As of June 30, 2022, the Company has a forward contract which expired in July of 2022, to repurchase 1.4 million shares of Frontline at a repurchase price of $16.6 million including accrued interest. The transaction has been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability of $15.6 million recorded within debt as of June 30, 2022 (December 31, 2021: $15.6 million). In July 2022, the forward contract to repurchase 1.4 million shares of Frontline, was rolled ov er to September 2022, at a repurchase pric e of $16.7 million. The C ompany is required to post collateral of 20% of the total repurchase price plus any negative mark to market movement from the repurchase price for the duration of the agreement. As of June 30, 2022, $5.7 million (December 31, 2021: $8.3 million) was held as collateral and recorded as restricted cash. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The following table presents the fair values of the Company’s derivative instruments that were designated as cash flow hedges and qualified as part of a hedging relationship, and those that were not designated: (in thousands of $) June 30, 2022 December 31, 2021 Non-designated derivative instruments - short-term assets: Interest rate swaps 792 — Total derivative instruments - short-term assets 792 — Designated derivative instruments - long-term assets: Interest rate swaps 10,711 2,077 Cross currency swaps — 1,019 Non-designated derivative instruments - long-term assets: Interest rate swaps 9,261 88 Total derivative instruments - long-term assets 19,972 3,184 (in thousands of $) June 30, 2022 December 31, 2021 Designated derivative instruments - short-term liabilities: Interest rate swaps — 68 Non-designated derivative instruments - short-term liabilities: Interest rate swaps 13 670 Total derivative instruments - short-term liabilities 13 738 Designated derivative instruments - long-term liabilities: Interest rate swaps — 2,316 Cross currency interest rate swaps 7,767 2,685 Cross currency swaps 25,719 10,038 Non-designated derivative instruments - long-term liabilities: Interest rate swaps — 2,159 Cross currency swaps 73 11 Total derivative instruments - long-term liabilities 33,559 17,209 Interest rate risk management The Company manages its debt portfolio with interest rate swap agreements denominated in U.S. dollars and Norwegian kroner to achieve an overall desired position of fixed and floating interest rates. As of June 30, 2022, the Company and its consolidated subsidiaries had entered into interest rate swap transactions, involving the payment of fixed and floating rates in exchange for LIBOR or NIBOR. The total net notional principal amount subject to interest rate swap agreements as of June 30, 2022, was $0.6 billion (December 31, 2021: $0.7 billion). Foreign currency risk management The Company is party to currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner and the payment of Norwegian kroner in exchange for U.S. dollars, which are designated as hedges against the NOK700 million, NOK700 million and NOK600 million senior unsecured bonds due 2023, 2024 and 2025 respectively. Principal Receivable Principal Payable Trade date Maturity date NOK600 million US$76.8 million September 2018 September 2023 NOK100 million US$11.3 million August 2019 September 2023 NOK700 million US$80.5 million May 2019 June 2024 NOK600 million US$67.5 million January 2020 January 2025 Apart from the NOK700 million, NOK700 million and NOK600 million senior unsecured bonds due 2023, 2024 and 2025, respectively, the majority of the Company’s transactions, assets and liabilities are denominated in U.S. dollars, the functional currency of the Company. Other than the corresponding currency swap transactions summarized above, the Company has not entered into forward contracts for either transaction or translation risk. Accordingly, there is a risk that currency fluctuations could have an adverse effect on the Company’s cash flows, financial condition and results of operations. Fair Values The carrying value and estimated fair value of the Company’s financial assets and liabilities as of June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale debt securities 6,315 6,315 9,680 9,680 Equity securities 1,589 1,589 1,292 1,292 Equity securities pledged to creditors 12,830 12,830 10,238 10,238 NOK700 million senior unsecured floating rate bonds due 2023 70,930 71,462 79,507 79,586 NOK700 million senior unsecured floating rate bonds due 2024 70,423 70,923 78,939 79,077 NOK600 million senior unsecured floating rate bonds due 2025 54,717 54,444 61,334 60,133 4.875% senior unsecured convertible notes due 2023 137,900 139,555 137,900 138,727 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 140,625 150,000 153,563 Derivatives: Interest rate/currency swap contracts - short-term receivables 792 792 — — Interest rate/currency swap contracts - long-term receivables 19,972 19,972 3,184 3,184 Interest rate/currency swap contracts - short-term payables 13 13 738 738 Interest rate/currency swap contracts - long-term payables 33,559 33,559 17,209 17,209 In accordance with the accounting policy relating to interest rate and currency swaps described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, changes in the fair values of the rate swaps are recognized in other comprehensive income where the Company has designated the swaps as hedges. Changes in the fair value of other swaps not designated as hedges are recognized in the Consolidated Statement of Operations. The fair values of financial assets and liabilities as of June 30, 2022, were measured as follows: Fair value measurements using (in thousands of $) June 30, 2022 Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale debt securities 6,315 4,619 1,696 Equity securities 1,589 1,589 Equity securities pledged to creditors 12,830 12,830 Interest rate/ currency swap, short-term receivables 792 792 Interest rate/ currency swaps, long-term receivables 19,972 19,972 Total assets 41,498 19,038 22,460 — Liabilities: NOK700 million senior unsecured floating rate bonds due 2023 71,462 71,462 NOK700 million senior unsecured floating rate bonds due 2024 70,923 70,923 NOK600 million senior unsecured floating rate bonds due 2025 54,444 54,444 4.875% senior unsecured convertible notes due 2023 139,555 139,555 7.25% senior unsecured sustainability-linked bonds due 2026 140,625 140,625 Interest rate/currency swaps, short-term payables 13 13 Interest rate/currency swaps, long-term payables 33,559 33,559 Total liabilities 510,581 477,009 33,572 — ASC Topic 820 "Fair Value Measurement and Disclosures" ("ASC 820") emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Level 1 and Level 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability, other than quoted prices, such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which typically are based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Investment in equity securities consist of (i) listed Frontline shares and (ii) NorAm Drilling Company AS ("NorAm Drilling") shares traded in the OTC market while the investments in available-for-sale debt securities consist of listed and unlisted corporate bonds. The Company determined that the available for sale corporate bonds held in NT Rig Holdco should be classified as Level 2 measurements. As of June 30, 2022 these bonds had a value of $1.7 million (December 31, 2021: $5.1 million classified as Level 2). The fair value of these corporate bonds is based on the latest available quoted prices, but due to low levels of trading the Company concluded that Level 1 classification was not appropriate as of June 30, 2022. The estimated fair values of the floating rate NOK denominated bonds due 2023, 2024 and 2025, the 4.875% unsecured convertible notes due 2023 and the 7.25% unsecured bonds due 2026 are all based on their quoted market prices as of the balance sheet date. The estimated fair value of interest rate and currency swap contracts is calculated using a well-established independent valuation technique applied to contracted cash flows and LIBOR or NIBOR interest rates as of June 30, 2022. Concentrations of risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that amounts are carried with Skandinaviska Enskilda Banken AB (publ), ABN AMRO Bank N.V., Nordea Bank Finland Plc., Credit Agricole Corporate and Investment Bank S.A., Danske Bank A/S, BNP Paribas, Commonwealth Bank of Australia, Credit Suisse Group AG, Morgan Stanley & Co. LLC and DNB Bank ASA. However, the Company believes this risk is remote, as these financial institutions are established and reputable establishments with no prior history of default. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk. There is also a concentration of revenue risk with the below customers to whom the Company has chartered multiple vessels. Charterer Number of Vessels chartered as of June 30, 2022 % of consolidated operating revenues (Six months ended June 30, 2022) % of consolidated operating revenues (Six months ended June 30, 2021) Frontline Shipping* 0 1 % 2 % Golden Ocean Group Limited (“Golden Ocean”)* 8 9 % 12 % MSC 9 1 % 3 % Maersk A/S (“Maersk”) 15 31 % 33 % Evergreen 6 17 % 15 % Trafigura 7 9 % — % * Additionally see Note 17: Related Party Transactions. In addition, a portion of our net income is generated from our associated companies. SFL Hercules leases a rig to a subsidiary of Seadrill and River Box holds investments in direct financing leases, through its subsidiaries, related to the 19,200 and 19,400 TEU containerships MSC Anna , MSC Viviana , MSC Erica and MSC Reef . Following amendments to the West Hercules bareboat charter and loan facility agreements, SFL Hercules was determined to no longer be a variable interest entity and was consolidated from August 27, 2021. (See Note 10: Investment in Associated Companies). In the six months ended June 30, 2022, revenue from subsidiaries that were consolidated and chartering their rigs to Seadrill, accounted for approximately 10% of our consolidated operating revenues (six months ended June 30, 2021: 5% of our consolidated operating revenues in relation to one drilling rig). Also i n the six months ended June 30, 2021 , income from the one remaining associated company chartering to Seadrill and consolidated from August 2021, accounted for approximately 1% of our net income. In February 2021, Seadrill and most of its subsidiaries filed Chapter 11 cases in the Southern District of Texas. In August 2021, the Company entered into the amendment agreement with subsidiaries of Seadrill for the harsh environment semi-submersible rig West Hercules, which was approved by the applicable bankruptcy court in September 2021. Each of SFL’s financing banks consented to the amendment agreement, and SFL’s limited corporate guarantee of the outstanding debt of the rig owning subsidiary remains unchanged at $83 million. Additionally, SFL agreed to a cash contribution of $5 million to SFL Hercules's pledged earnings account at the time of redelivery following the termination of the Seadrill charter, in addition to a $3 million payable by Seadrill. In May 2022, SFL entered into an agreement for the operational management of the West Hercules rig with a subsidiary of Odfjell to perform commercial and operational management of the rig upon redelivery of the rig from Seadrill expected in the second half of 2022. The rig is already being marketed for new charter opportunities in 2023 immediately following completion of its special periodic survey planned for early 2023. In February 2022, the Company agreed to make changes to the chartering and management structure of the harsh environment jack-up drilling rig West Linus . The rig was delivered in 2014, and is currently operated by a subsidiary of Seadrill and employed on a long-term drilling contract with ConocoPhillips in the North Sea until the fourth quarter of 2028. The Company, Seadrill and ConocoPhillips reached an agreement in which the drilling contract with ConocoPhillips is to be assigned from the current Seadrill operator to one of the subsidiaries of the Company, upon the receipt of the necessary regulatory approvals. Upon effective assignment of the drilling contract, SFL will receive charter hire for the rig directly from ConocoPhillips and pay for operating and management expenses. SFL has simultaneously entered into an agreement for the operational management of the rig with a subsidiary of Odfjell, a leading harsh environment drilling rig operator. The change of operational management from Seadrill to Odfjell is subject to customary regulatory approvals relating to operations on the Norwegian Continental Shelf. Until the approvals are in place, Seadrill will continue the existing charter arrangements for a period of up to approximately nine months. The bareboat charter rate from Seadrill in this transition period will be approximately $55,000 per day. |
SHARE CAPITAL, ADDITIONAL PAID-
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS Authorized share capital is as follows: (in thousands of $, except share data) June 30, 2022 December 31, 2021 300,000,000 common shares of $0.01 par value each (December 31, 2021: 300,000,000 shares of $0.01 par value each) 3,000 3,000 Issued and fully paid share capital is as follows: (in thousands of $, except share data) June 30, 2022 December 31, 2021 138,551,387 common shares of $0.01 par value each (December 31, 2021: 138,551,387 shares of $0.01 par value each) 1,386 1,386 The Company’s common shares are listed on the New York Stock Exchange. On January 1, 2022, the Company implemented the guidance contained in ASU 2020-06 which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06, was adopted using the modified retrospective method (see Note 1: Interim Financial Data). Following the adoption, the 4.875% senior unsecured convertible notes due 2023 are reflected entirely as a liability as the embedded conversion feature is no longer presented within stockholders' equity. The cumulative effect of adopting this guidance was an incremental adjustment of $4.3 million to opening retained earnings, and a $5.9 million reduction to additional paid-in capital as of January 1, 2022. This net adjustment to equity of $1.6 million resulted in a corresponding decrease in deferred debt issuance costs. On May 1, 2020, SFL filed a registration statement to register the sale of up to 10,000,000 common shares pursuant to the dividend reinvestment plan ("DRIP"), to facilitate investments by individual and institutional shareholders who wish to invest dividend payments received on shares owned or other cash amounts, in the Company's common shares on a regular basis, one time basis or otherwise. If certain waiver provisions in the DRIP are requested and granted pursuant to the terms of the plan, SFL may grant additional share sales to investors from time to time up to the amount registered under the plan. On April 15, 2022, SFL filed a new registration statement to register the sale of up to 10,000,000 common shares pursuant to the DRIP. During the six months ended June 30, 2022, the Company declared a dividend of $0.20 per share on February 16, 2022 to shareholders of record as of March 16, 2022, with an ex-dividend date of March 15, 2022. The Company also declared a dividend of $0.22 per share on May 12, 2022 to shareholders of record as of June 15, 2022, with an ex-dividend date of June 14, 2022. In May 2020, the Company entered into an equity distribution agreement with BTIG LLC ("BTIG") under which SFL could, from time to time, offer and sell new common shares having aggregate sales proceeds of up to $100.0 million through an At-the-Market Sales Agreement offering ("ATM"). In April 2022, the Company entered into an Amended and Restated ATM with BTIG. Under this agreement, the prior ATM established in May 2020 was terminated and replaced with a renewed ATM program, under which the Company may continue to offer and sell new common shares having aggregate sales proceeds of up to $100.0 million, from time to time through BTIG. No new shares were issued and sold under the DRIP and ATM arrangements during the six months ended June 30, 2022. During the year ended December 31, 2021, the Company issued and sold a total of 10.7 million shares under these DRIP and ATM arrangements. Total proceeds, net of costs, of $89.4 million were received, resulting in a premium on issue of $89.3 million. During the year ended December 31, 2021, the Company repurchased bonds with principal amounts totaling $69.6 million. The equity component of these extinguished bonds was valued at $0.5 million and was deducted from "Additional paid-in capital". During the six months ended June 30, 2022, $37.3 million of the dividend declared was paid from contributed surplus (year ended December 31, 2021: $77.6 million). |
SHARE OPTION PLAN
SHARE OPTION PLAN | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE OPTION PLAN | SHARE OPTION PLAN In November 2006, the Board of Directors approved the Option Scheme. The Option Scheme will expire in November 2026, following the renewal in November 2016. The terms and conditions remain unchanged from those originally adopted in November 2006 and permit the Board of Directors, at its discretion, to grant options to employees, officers and directors of the Company or its subsidiaries. The fair value cost of options granted is recognized in the statement of operations, and the corresponding amount is credited to additional paid-in capital. In the six months ended June 30, 2022, additional paid-in capital was credited with $0.7 million relating to the fair value of options granted in January 2019, March 2019, February 2020, May 2021 and February 2022. In February 2022, the Company awarded a total of 435,000 options to officers, employees and directors, pursuant to the Option Scheme. The options have a five-year term and a three-year vesting period and the first options will be exercisable from February 2023 onwards. The initial strike price was $8.73 per share. Total unrecognized compensation cost relating to the outstanding options under the Option Scheme was $1.6 million as of June 30, 2022 (December 31, 2021: $1.0 million). |
FINANCE LEASE LIABILITY
FINANCE LEASE LIABILITY | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Finance lease liability | FINANCE LEASE LIABILITY As of June 30, 2022, the Company chartered-in seven container vessels under sale and leaseback transactions with an Asia based financial institution (December 31, 2021: seven). The seven vessels are accounted for as vessels under finance lease (refer to Note 8: Vessels under Finance Lease, net). (in thousands of $) June 30, 2022 December 31, 2021 Finance lease liability, current portion 52,397 51,204 Finance lease liability, long-term portion 446,426 472,996 498,823 524,200 Interest incurred on the finance lease liability in the six months ended June 30, 2022 was $12.0 million (six months ended June 30, 2021: $13.1 million). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company has transactions with the following related parties, being companies in which our principal shareholder, Hemen and companies associated with Hemen have, or had, a significant direct or indirect interest: – Frontline – Frontline Shipping – Seadrill (1) – Golden Ocean – Seatankers Management Co. Ltd. ("Seatankers") – Front Ocean – NorAm Drilling – ADS Maritime Holding – River Box (1) From February 2022, Seadrill was determined to no longer be a related party following its emergence from bankruptcy (see below). The Condensed Consolidated Balance Sheets include the following amounts due from and to related parties and associated companies, excluding direct financing lease receivables (refer to Note 9: Investments in Sales-Type Leases, Direct Financing Leases and Leaseback Assets). (in thousands of $) June 30, 2022 December 31, 2021 Amounts due from: Frontline 5,110 3,633 Seadrill*** — 3,643 Seatankers — 77 Golden Ocean 1,510 4,453 River Box** 8 5 Other related parties 1 1 Allowance for expected credit losses* (45) (3,255) Total amount due from related parties 6,584 8,557 Loans to related parties - associated companies, long-term River Box** 45,000 45,000 Total loans to related parties - associated companies, long-term 45,000 45,000 Amounts due to: Frontline Shipping 1,073 1,252 Frontline — 2 Golden Ocean 85 36 Seatankers 51 — Other related parties 37 5 Total amount due to related parties 1,246 1,295 * See Note 18: Allowance for Expected Credit Losses. ** River Box was previously a wholly owned subsidiary of the Company. It holds investments in direct financing leases, through its subsidiaries, related to the 19,200 and 19,400 TEU containerships MSC Anna, MSC Viviana, MSC Erica and MSC Reef . On December 31, 2020, the Company sold 50.1% of the shares of River Box to a subsidiary of Hemen, a related party, and has accounted for the remaining 49.9% ownership in River Box using the equity method. (Refer to Note 10: Investment in Associated Companies). *** SFL Hercules and SFL Linus own the drilling units West Hercules and West Linus, respectively, which are on charter to subsidiaries of Seadrill, previously a related party. On February 22, 2022, Seadrill announced that it has emerged from Chapter 11 after successfully completing its reorganization. Upon emergence a new independent board of directors assumed leadership of the new parent company of the Seadrill group, which is referred to as Seadrill 2021 Limited. Hemen’s shareholding in Seadrill 2021 Limited post-emergence from bankruptcy is also below 1%. Consequently, SFL determined that Seadrill is no longer a related party following the emergence from bankruptcy. Related party leasing and service contracts A summary of leasing revenues and repayments from Frontline Shipping, Golden Ocean and Seadrill is as follows: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Golden Ocean: Operating lease income 25,689 25,261 Profit share 1,510 1,244 Frontline Shipping: Direct financing lease interest income 382 766 Direct financing lease service revenue 1,746 3,258 Direct financing lease repayments 1,752 3,176 Profit share — 268 Seadrill* † Direct financing lease interest income * — 3,686 Direct financing lease repayments * — 2,703 Operating lease income † 17,770 7,912 * On March 9, 2021, modifications to the charter contract in respect of the drilling unit West Linus , resulted in the lease being reclassified from a direct financing lease to an operating lease. † Reflecting revenue through February 21, 2022. Seadrill was determined to no longer be a related party following its emergence from bankruptcy on February 22, 2022. In addition to leasing revenues and repayments, the Company incurred the following fees with related parties: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Frontline: Vessel Management Fees 2,669 4,249 Newbuilding Supervision Fees 466 16 Commissions and Brokerage 152 96 Administration Services Fees 2 59 Golden Ocean: Vessel Management Fees 10,135 10,136 Operating Management Fees 22 355 Administration Services Fees — 33 Seatankers: Administration Services Fees* 251 113 Front Ocean: Administration Services Fees 210 — Office Facilities: Seatankers Management Norway AS 62 54 Frontline Management AS 128 118 Frontline Corporate Services Ltd. 60 71 Flex LNG Management Ltd 3 — Golden Ocean Shipping Co Pte. Ltd. 41 — * In addition a credit note of $0.3 million was received during the six months ended June 30, 2021 in relation to 2020 fees paid. Related party loans – associated companies A summary of loans entered into with the associated companies are as follows: (in millions of $) River Box Loans granted 45 Loans outstanding as of June 30, 2022 45 The loan to River Box is a fixed interest rate loan and is repayable in full on November 16, 2033 or earlier if River Box sells its assets. Interest income received on the loans to associated companies is as follows: Six months ended (in millions of $) June 30, 2022 June 30, 2021 River Box 2.3 2.3 SFL Hercules* — 1.8 * Following approval of the amendments to the charter and debt agreements, SFL Hercules was no longer deemed to be a variable interest entity and became consolidated by the Company in August 2021. The "Interest income received on the loans to associated companies" recognized was in respect of the period preceding consolidation. Related party purchases and sales of vessels During the year ended December 31, 2021 , the Company entered into agreements to acquire four LR2 product tankers from entities related to Frontline Ltd., for an aggregate amount of $160.0 million. Two of the vessels were delivered to the Company in December 2021 and the remaining two vessels were delivered in January 2022. Upon delivery, the vessels commenced their long term charters to a third party. Other related party transactions During the six months ended June 30, 2022, the Company delivered the VLCCs Front Energy and Front Force to an unrelated third party for sale proceeds of $65.4 million. Furthermore, the Company agreed with Frontline Shipping to terminate the long-term charters for the vessels upon the sale and delivery, and received $4.5 million compensation for early termination of the charters. A gain of $1.5 million was recognized on the sale of the two vessels. (See also Note 2: Gain on Sale of Assets and Termination of Charters). In March 2021, the Company received a capital dividend of approximately $8.8 million from ADS Maritime Holding following the sale of its remaining two vessels. Also in March 2021, the Company sold its remaining shares in ADS Maritime Holding for a consideration of approximately $0.8 million recognizing a gain of $0.7 million on disposal. For additional information on the shares and corporate bonds held, refer to Note 5: Investments in Debt and Equity Securities. |
ALLOWANCE FOR EXPECTED CREDIT L
ALLOWANCE FOR EXPECTED CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR EXPECTED CREDIT LOSSES | ALLOWANCE FOR EXPECTED CREDIT LOSSES The Company records an allowance for expected credit losses based on an assessment of the impact of current and expected future conditions, inclusive of the Company's estimate of the potential effect of the COVID-19 pandemic on credit losses. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on expected credit losses is subject to significant judgment and may cause variability in the Company’s allowance for credit losses in future periods. Movements in the allowance for expected credit losses may result in gains as well as losses recorded in income as changes occur in the balances of our financial assets and the risk profiles of our counterparties. The following table presents the impact of the allowance for expected credit losses on the Company's balance sheet line items for the six months ended June 30, 2022. (in thousands of $) Trade receivables Other receivables Related Party receivables Investment in sales-type, direct financing leases and leaseback assets Other long-term assets Total Balance as of December 31, 2021 96 486 3,255 1,263 1,888 6,988 Derecognition of Seadrill credit loss balances — — (3,200) — — (3,200) Change in allowance recorded in 'other financial items' (4) 477 (10) (1,037) (8) (582) Balance as of June 30, 2022 92 963 45 226 1,880 3,206 During the six months ended June 30, 2022, credit loss balances of $3.2 million were derecognized as Seadrill emerged from Chapter 11 in February 2022. Also, during the six months ended June 30, 2022, SFL determined that Seadrill is no longer a related party following the emergence from bankruptcy. (See also Note 17: Related Party Transactions). The impact of the allowance for expected credit losses on the associates is disclosed in Note 10: Investment in Associated Companies. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Assets Pledged (in millions of $) June 30, 2022 December 31, 2021 Vessels and equipment, net 2,308 2,107 Investments in sales-type, direct financing leases and leaseback assets 127 203 Book value of consolidated assets pledged under ship mortgages 2,435 2,310 Assets with finance lease liabilities (in millions of $) June 30, 2022 December 31, 2021 Vessels under finance lease, net 636 656 Total book value 636 656 The Company has funded its acquisition of vessels, jack-up rig and ultra-deepwater drilling unit through a combination of equity, short-term debt and long-term debt. Providers of long-term loan facilities usually require that the loans be secured by mortgages against the assets being acquired. As of June 30, 2022, the Company had $2.0 billion of outstanding principal indebtedness under various credit facilities ( December 31, 2021 : $1.9 billion) and finance lease liabilities totaling $0.5 billion ( December 31, 2021 : $0.5 billion ) . As of June 30, 2022, the Company had a forward contract which expired in July 2022, and has subsequently been rolled over to September 2022, to repurchase 1.4 million shares of Frontline (December 31, 2021: 1.4 million shares) with a carrying value of $12.8 million (December 31, 2021: $10.2 million). The transaction has been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability of $15.6 million recorded within debt as of June 30, 2022 (December 31, 2021: $15.6 million). As of June 30, 2022 these shares together with a restricted cash balance of $5.7 million (December 31, 2021: $8.3 million) have been pledged as part of the forward agreement. Other Contractual Commitments and Contingencies The Company has arranged insurance for the legal liability risks for its shipping activities with Gard P.& I. (Bermuda) Ltd., Assuranceforeningen Skuld (Gjensidig), The Steamship Mutual Underwriting Association Limited, North of England P&I Association Limited, The Standard Club Europe Ltd, The United Kingdom Mutual Steam Ship Assurance Association (Europe) Limited and The Britannia Steam Ship Insurance Association Limited, all of which are mutual protection and indemnity associations. The Company is subject to calls payable to the associations based on the Company’s claims record in addition to the claims records of all other members of the associations. A contingent liability exists to the extent that the claims records of the members of the associations in the aggregate show significant deterioration, which may result in additional calls on the members. Capital commitments As of June 30, 2022 and December 31, 2021, the Company has no capital commitments towards the procurement of scrubbers on vessels owned by the Company. As of June 30, 2022, the Company had commitments to pay approximately $2.5 million towards the installation of BWTS on four vessels from its fleet (December 31, 2021: $2.7 million on five vessels), with installations expected to take place up to the end of 2023. As of June 30, 2022, the Company had commitments under shipbuilding contracts to construct four newbuilding dual-fuel 7,000 CEU car carriers designed to use liquefied natural gas (“LNG”), totaling to $239.7 million (December 31, 2021: $254.2 million). Delivery of the vessels is expected to take place in 2023 and 2024. (Refer to Note 7: Newbuildings and Vessel Purchase Deposits). There were no other material contractual commitments as of June 30, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 17, 2022, the Board of Directors of the Company declared a dividend of $0.23 per share which is payable in cash on or around September 29, 2022 to shareholders of record on September 15, 2022. In August 2022, the Company agreed to acquire four 2015 and 2020 built modern eco-design vessels, in combination with six year charters to a subsidiary of Koch Industries. The aggregate purchase price of the vessels is $222.5 million and the Company expects to take delivery during the third or fourth quarter of 2022. |
INTERIM FINANCIAL DATA (Policie
INTERIM FINANCIAL DATA (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
INTERIM FINANCIAL DATA [Abstract] | |
Basis of accounting | Basis of accounting The condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the assets and liabilities and results of operations of the Company and its subsidiaries including variable interest entities in which SFL is deemed to be the primary beneficiary. All inter-company balances and transactions have been eliminated on consolidation. The condensed consolidated financial statements are prepared in accordance with the accounting policies described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The following is a brief discussion of a selection of recently released accounting pronouncements that are pertinent to the Company's business: In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU No. 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings ("TDRs") by creditors in Subtopic 310-40, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments are effective for the Company beginning after December 15, 2022. As of period ended June 30, 2022, the Company does not expect the changes prescribed in ASU 2022-02 to have a material impact on its consolidated financial position, results of operations or cash flows, however, we will re-evaluate the amendments based on the facts and circumstances of the Company at the time of implementation of the guidance. In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2022, and are applied prospectively to business combinations that occur after the effective date. The Company will evaluate these amendments based on the facts and circumstances of any future business combinations. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". Accounting Standards Codification (“ASC”) 848 provided temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to reduce the financial reporting burden in light of the market transition from London Interbank Offered Rates (“LIBOR”) and other reference interest rates to alternative reference rates. Under ASC 848, companies can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. An entity that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. The amendments of ASC 848 |
Recently adopted accounting standards | Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity". ASU 2020-06 eliminates the accounting model that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. Consequently, a convertible debt instrument is now accounted for as a single liability measured at its amortized cost or as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the interest rate of convertible debt instruments typically is now closer to the coupon interest rate. ASU 2020-06 also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 also amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The Company adopted this update on January 1, 2022 using the modified retrospective approach, whereby a cumulative effect adjustment was made to reduce retained earnings on January 1, 2022 without any retroactive application to prior periods. The cumulative effect of adopting this guidance was an incremental adjustment of $4.3 million to the Company's opening retained earnings and a $5.9 million reduction to additional paid-in capital as of January 1, 2022. This net adjustment to equity of $1.6 million is solely in respect of its 4.875% senior unsecured convertible notes due 2023 and resulted in a corresponding decrease in the deferred debt issuance costs of the notes (see Note 14: Share Capital, Additional Paid-In Capital and Contributed Surplus). Also, as the Company already uses the average market price for share price quotations and the if-converted method for its convertible instruments in the computation of the diluted earnings per share, the other amendments in ASU 2020-06 did not have any impact on the Company. |
Significant accounting policies - update | Significant Accounting Policies - Update Our significant accounting policies are described in "Note 2: Accounting Policies" of our Annual Report on Form 20-F for the year ended December 31, 2021 . Our updated significant accounting policies described below reflect the impact of adopting ASU 2020-06. |
Convertible notes | Convertible notes Through December 31, 2021 , the Company separately accounted for the liability and equity components of the Convertible Notes at issuance. The debt issuance costs related to the issuance of the Convertible Notes were also previously allocated to the liability and equity components based on their relative values. With the adoption of ASU 2020-06, on January 1, 2022, amounts for convertible notes, including debt issuance costs, that were previously classified within equity are now reclassified to the liability component, net of any remaining unamortized amounts. Debt issuance costs are amortized to interest expense, on a straight-line basis, over the term of the relevant convertible notes. (See also "Recently Adopted Accounting Standard" above). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management of the Company believes that the accounting estimates and assumptions that have been made are appropriate given the continuing uncertainties surrounding the severity and duration of the impacts of the COVID-19 pandemic. However actual results could differ materially from those estimates. |
EARNINGS_(LOSS) PER SHARE (Tabl
EARNINGS/(LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of components of calculation of earnings per share | The components of the numerator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Basic earnings per share: Net income available to stockholders 104,429 51,009 Diluted earnings per share: Net income available to stockholders 104,429 51,009 Interest and other expenses attributable to dilutive convertible notes 3,747 (206) Net income assuming dilution 108,176 50,803 The components of the denominator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands) June 30, 2022 June 30, 2021 Basic earnings per share: Weighted average number of common shares outstanding* 126,786 117,421 Diluted earnings per share: Weighted average number of common shares outstanding* 126,786 117,421 Effect of dilutive share options 38 — Effect of dilutive convertible notes 10,476 15 Weighted average number of common shares outstanding assuming dilution 137,300 117,436 Six months ended June 30, 2022 June 30, 2021 Basic earnings per share: $ 0.82 $ 0.43 Diluted earnings per share: $ 0.79 $ 0.43 *The weighted average number of common shares outstanding excludes 8,000,000 shares issued as part of a share lending arrangement relating to the Company's issuance of 5.75% senior unsecured convertible notes in October 2016. After the maturity of these bonds, the Company entered into a general share lending agreement with another counterparty and the 8,000,000 shares were transferred into its custody. The weighted average number of common shares outstanding also excludes 3,765,842 shares issued as of June 30, 2022 from up to 7,000,000 shares issuable under a share lending arrangement relating to the Company's issuance of 4.875% senior unsecured convertible notes in April and May 2018. These 3,765,842 shares, which were issued and loaned, are owned by the Company and are to be returned on or before maturity of the bonds in 2023, pursuant to the terms of the applicable share lending arrangement, however the Company may enter into additional lending arrangements in respect of these shares upon the maturity of the existing lending arrangement. |
OTHER FINANCIAL ITEMS (Tables)
OTHER FINANCIAL ITEMS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Financial Items [Abstract] | |
Schedule of other financial items, net | Other financial items, net comprise of the following items: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Net cash movement on non-designated derivatives and swap settlements (1,692) (3,558) Net gain in fair value movements of non-designated derivatives 12,718 6,937 Change in allowance for expected credit losses 582 716 Other items (1,525) (338) Total other financial items, net 10,083 3,757 |
INVESTMENTS IN DEBT AND EQUIT_2
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable securities | Investment securities held by the Company consist of the following investments in corporate bonds and equity securities: (in thousands of $) June 30, 2022 December 31, 2021 Corporate Bonds 6,315 9,680 Equity Securities 14,419 11,530 Total Investment in Debt and Equity Securities 20,734 21,210 |
Schedule of debt securities, available-for-sale | Six months ended June 30, 2022 Year ended December 31, 2021 (in thousands of $) Amortized Cost Unrealized gains/(losses) Fair value Amortized Cost Unrealized gains/(losses) Fair value Corporate bonds: NorAm Drilling Bond 4,132 487 4,619 4,132 487 4,619 NT Rig Holdco Liquidity 12% 1,222 474 1,696 4,917 144 5,061 NT Rig Holdco 7.5% — — — — — — Oro Negro 7.5% — — — — — — Total corporate bonds 5,354 961 6,315 9,049 631 9,680 |
Schedule of equity securities | Changes in the fair value of equity investments are recognized in net income. (in thousands of $) June 30, 2022 December 31, 2021 Frontline 12,830 10,238 NorAm Drilling 1,589 1,292 Total Equity Securities 14,419 11,530 Equity Securities pledged to creditors 12,830 10,238 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of movements of vessels and equipment | Movements in the six months ended June 30, 2022 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels and Equipment, net Balance as of December 31, 2021 2,782,909 (552,326) 2,230,583 Depreciation — (70,828) (70,828) Vessel additions 190,000 — 190,000 Capital improvements 492 — 492 Balance as of June 30, 2022 2,973,401 (623,154) 2,350,247 |
VESSELS UNDER FINANCE LEASE, _2
VESSELS UNDER FINANCE LEASE, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of finance lease | Movements in the six months ended June 30, 2022 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels under Finance Lease, net Balance as of December 31, 2021 777,939 (121,867) 656,072 Depreciation — (20,485) (20,485) Balance as of June 30, 2022 777,939 (142,352) 635,587 |
INVESTMENTS IN SALES-TYPE LEA_2
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
Schedule of sales-type leases, direct financing leases, and leaseback assets | The following lists the components of investments in sales-type leases, direct financing leases and leaseback assets as of June 30, 2022 and December 31, 2021: (in thousands of $) June 30, 2022 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 38,112 38,668 76,780 Net minimum lease payments receivable 38,112 38,668 76,780 Estimated residual values of leased property (unguaranteed) 43,150 31,500 74,650 Less : unearned income (9,472) (14,971) (24,443) Total investment in sales-type lease, direct financing lease and leaseback assets 71,790 55,197 126,987 Allowance for expected credit losses* (110) (116) (226) Total investment in sales-type lease, direct financing lease and leaseback assets 71,680 55,081 126,761 Current portion 10,450 5,094 15,544 Long-term portion 61,230 49,987 111,217 (in thousands of $) December 31, 2021 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 120,411 43,103 163,514 Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments (34,128) — (34,128) Net minimum lease payments receivable 86,283 43,103 129,386 Estimated residual values of leased property (unguaranteed) 79,621 31,500 111,121 Less: unearned income (17,532) (16,946) (34,478) Total investment in sales-type lease, direct financing lease and leaseback assets 148,372 57,657 206,029 Allowance for expected credit losses* (1,142) (121) (1,263) Total investment in sales-type lease, direct financing lease and leaseback assets 147,230 57,536 204,766 Current portion 18,436 5,048 23,484 Long-term portion 128,794 52,488 181,282 *See Note 18: Allowance for Expected Credit Losses. |
INVESTMENTS IN ASSOCIATED COM_2
INVESTMENTS IN ASSOCIATED COMPANIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Schedule of percentage participation using the equity method of accounting | As of June 30, 2022, June 30, 2021 and December 31, 2021, the Company had the following participation in investments that were recorded using the equity method: June 30, 2022 June 30, 2021 December 31, 2021 River Box Holding Inc. (“River Box”) † 49.90 % 49.90 % 49.90 % SFL Hercules Ltd. (“SFL Hercules”) * 100.00 % * † River Box was a previously wholly owned subsidiary of the Company. River Box holds investments in direct financing leases, through its subsidiaries, in relation to the 19,200 and 19,400 TEU containerships MSC Anna , MSC Viviana , MSC Erica and MSC Reef . On December 31, 2020, the Company sold 50.1% of the shares of River Box to a subsidiary of Hemen Holding Limited (“Hemen”), our largest shareholder and a related party, and has accounted for the remaining 49.9% ownership in River Box using the equity method. * SFL Hercules, a wholly-owned subsidiary of the Company, owns the drilling unit West Hercules which is on charter to a subsidiary of Seadrill, previously a related party. SFL determined that Seadrill was no longer a related party following its emergence from bankruptcy in February 2022. (See Note 17: Related Party Transactions). SFL Hercules was previously determined to be a variable interest entity for which the Company was not the primary beneficiary and thus accounted for using the equity method. During the year ended December 31, 2021 and following amendments to the West Hercules bareboat charter and loan facility agreements, SFL Hercules was determined to no longer be a variable interest entity and was consolidated from August 27, 2021 when the amendments were approved by the applicable bankruptcy court (see below). |
Schedule of summarized financial statement information of equity method investees | Summarized balance sheet information of the Company’s equity method investees is as follows: As of June 30, 2022 (in thousands of $) TOTAL River Box Share presented 49.90 % Current assets 14,417 14,417 Non-current assets 241,137 241,137 Total assets 255,554 255,554 Current liabilities 13,609 13,609 Non-current liabilities 225,361 225,361 Total liabilities 238,970 238,970 Total stockholders’ equity 16,584 16,584 As of December 31, 2021 (in thousands of $) TOTAL River Box Share presented 49.90 % Current assets 13,987 13,987 Non-current assets 247,361 247,361 Total assets 261,348 261,348 Current liabilities 13,242 13,242 Non-current liabilities 231,471 231,471 Total liabilities 244,713 244,713 Total stockholders’ equity 16,635 16,635 Summarized statement of operations information of the Company’s equity method investees is as follows: Six months ended June 30, 2022 (in thousands of $) TOTAL River Box Share presented 49.90 % Operating revenues 9,665 9,665 Net operating revenues 9,654 9,654 Net income 1,405 1,405 Six months ended June 30, 2021 (in thousands of $) TOTAL River Box SFL Hercules Share presented 49.90 % * Operating revenues 20,141 10,076 10,065 Net operating revenues 15,082 10,065 5,017 Net income 2,564 1,819 745 * From August 27, 2021, SFL Hercules ceased to be accounted for as an associate and became consolidated by the Company (see further details above). |
Schedule of allowance for expected credit losses in associates | Movements in the six months ended June 30, 2022 in the allowance for expected credit losses can be summarized as follows: (in thousands of $) TOTAL River Box Share presented 49.90 % Balance as of December 31, 2021 396 396 Allowance recorded in net income of associated companies (9) (9) Balance as of June 30, 2022 387 387 |
OTHER LONG TERM ASSETS (Tables)
OTHER LONG TERM ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | Other long term assets comprise of the following items: (in thousands of $) June 30, 2022 December 31, 2021 Capital improvements in progress 284 591 Collateral deposits on swap agreements 12,000 10,368 Value of acquired charter-out contracts, net 6,171 7,607 Other — 566 Total Other Long Term Assets 18,455 19,132 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Schedule of short-term and long-term debt | (in thousands of $) June 30, 2022 December 31, 2021 Long-term debt: NOK700 million senior unsecured floating rate bonds due 2023 70,930 79,507 NOK700 million senior unsecured floating rate bonds due 2024 70,423 78,939 NOK600 million senior unsecured floating rate bonds due 2025 54,717 61,334 4.875% senior unsecured convertible notes due 2023 137,900 137,900 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 150,000 Lease debt financing 167,409 126,955 Borrowings secured on Frontline shares 15,639 15,639 Total Fixed Rate and Foreign Debt 667,018 650,274 U.S. dollar denominated floating rate debt due through 2029 1,308,592 1,253,481 Total debt principal 1,975,610 1,903,755 Less: Unamortized debt issuance costs (12,069) (14,541) Less: Current portion of long-term debt (760,473) (302,769) Total long-term debt 1,203,068 1,586,445 Movements in the period: (in thousands of $) Fixed Rate and Foreign Debt U.S. Dollar Floating Rate Debt Total debt principal Balance as of December 31, 2021 650,274 1,253,481 1,903,755 Drawdowns 48,750 206,600 255,350 Repayments and redemptions (8,297) (151,489) (159,786) Effects of foreign exchange (23,709) — (23,709) Balance as of June 30, 2022 667,018 1,308,592 1,975,610 |
Schedule of interest rate information | June 30, 2022 December 31, 2021 Weighted average interest rate* 3.61 % 2.68 % US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate 2.29 % 0.21 % Secured Overnight Financing Rate ("SOFR"), closing rate 1.50 % 0.05 % Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate 1.68 % 0.95 % *The weighted average interest rate is for floating rate debt denominated in U.S. dollars and Norwegian kroner (“NOK”) which takes into consideration the effect of related interest rate swaps. |
Schedule of U.S. Dollar floating rate debt | New facilities drawn down between January 1, 2022 and June 30, 2022: Name of facility Draw down Number of wholly owned subsidiaries entering into the facility Term Balance outstanding at period end $107.25 million term loan facility* Dec. 2021 - Feb. 2022 three 5 years 105.2 $35 million term and revolving loan facility Feb. 2022 two 3 years — $100 million term loan facility Mar. 2022 four 5 years 97.5 *The total balance of this facility drawn down in the six months ended June 30, 2022 was $71.5 million. The Company has provided limited corporate guarantees for the above facilities, which bear interest at LIBOR plus a margin or the compounded daily SOFR plus a margin. Facilities redeemed between January 1, 2022 and June 30, 2022: Name of facility Original draw down date Number of wholly owned subsidiaries that had entered into the facility Original Term Amount redeemed $50 million secured term loan facility Feb. 2019 three 4 years 35.2 $29.5 million term loan facility Mar. 2019 two 5 years 18.0 $35 million term and revolving loan facility Feb. 2022 two 3 years 35.1 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments designated and not designated as cash flow hedges | The following table presents the fair values of the Company’s derivative instruments that were designated as cash flow hedges and qualified as part of a hedging relationship, and those that were not designated: (in thousands of $) June 30, 2022 December 31, 2021 Non-designated derivative instruments - short-term assets: Interest rate swaps 792 — Total derivative instruments - short-term assets 792 — Designated derivative instruments - long-term assets: Interest rate swaps 10,711 2,077 Cross currency swaps — 1,019 Non-designated derivative instruments - long-term assets: Interest rate swaps 9,261 88 Total derivative instruments - long-term assets 19,972 3,184 (in thousands of $) June 30, 2022 December 31, 2021 Designated derivative instruments - short-term liabilities: Interest rate swaps — 68 Non-designated derivative instruments - short-term liabilities: Interest rate swaps 13 670 Total derivative instruments - short-term liabilities 13 738 Designated derivative instruments - long-term liabilities: Interest rate swaps — 2,316 Cross currency interest rate swaps 7,767 2,685 Cross currency swaps 25,719 10,038 Non-designated derivative instruments - long-term liabilities: Interest rate swaps — 2,159 Cross currency swaps 73 11 Total derivative instruments - long-term liabilities 33,559 17,209 |
Schedule of currency swap transactions | Principal Receivable Principal Payable Trade date Maturity date NOK600 million US$76.8 million September 2018 September 2023 NOK100 million US$11.3 million August 2019 September 2023 NOK700 million US$80.5 million May 2019 June 2024 NOK600 million US$67.5 million January 2020 January 2025 |
Schedule of carrying value and estimated fair value of financial assets and liabilities | The carrying value and estimated fair value of the Company’s financial assets and liabilities as of June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Available-for-sale debt securities 6,315 6,315 9,680 9,680 Equity securities 1,589 1,589 1,292 1,292 Equity securities pledged to creditors 12,830 12,830 10,238 10,238 NOK700 million senior unsecured floating rate bonds due 2023 70,930 71,462 79,507 79,586 NOK700 million senior unsecured floating rate bonds due 2024 70,423 70,923 78,939 79,077 NOK600 million senior unsecured floating rate bonds due 2025 54,717 54,444 61,334 60,133 4.875% senior unsecured convertible notes due 2023 137,900 139,555 137,900 138,727 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 140,625 150,000 153,563 Derivatives: Interest rate/currency swap contracts - short-term receivables 792 792 — — Interest rate/currency swap contracts - long-term receivables 19,972 19,972 3,184 3,184 Interest rate/currency swap contracts - short-term payables 13 13 738 738 Interest rate/currency swap contracts - long-term payables 33,559 33,559 17,209 17,209 |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The fair values of financial assets and liabilities as of June 30, 2022, were measured as follows: Fair value measurements using (in thousands of $) June 30, 2022 Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale debt securities 6,315 4,619 1,696 Equity securities 1,589 1,589 Equity securities pledged to creditors 12,830 12,830 Interest rate/ currency swap, short-term receivables 792 792 Interest rate/ currency swaps, long-term receivables 19,972 19,972 Total assets 41,498 19,038 22,460 — Liabilities: NOK700 million senior unsecured floating rate bonds due 2023 71,462 71,462 NOK700 million senior unsecured floating rate bonds due 2024 70,923 70,923 NOK600 million senior unsecured floating rate bonds due 2025 54,444 54,444 4.875% senior unsecured convertible notes due 2023 139,555 139,555 7.25% senior unsecured sustainability-linked bonds due 2026 140,625 140,625 Interest rate/currency swaps, short-term payables 13 13 Interest rate/currency swaps, long-term payables 33,559 33,559 Total liabilities 510,581 477,009 33,572 — |
Schedule of concentration of revenue risk | There is also a concentration of revenue risk with the below customers to whom the Company has chartered multiple vessels. Charterer Number of Vessels chartered as of June 30, 2022 % of consolidated operating revenues (Six months ended June 30, 2022) % of consolidated operating revenues (Six months ended June 30, 2021) Frontline Shipping* 0 1 % 2 % Golden Ocean Group Limited (“Golden Ocean”)* 8 9 % 12 % MSC 9 1 % 3 % Maersk A/S (“Maersk”) 15 31 % 33 % Evergreen 6 17 % 15 % Trafigura 7 9 % — % * Additionally see Note 17: Related Party Transactions. |
SHARE CAPITAL, ADDITIONAL PAI_2
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Capital | Authorized share capital is as follows: (in thousands of $, except share data) June 30, 2022 December 31, 2021 300,000,000 common shares of $0.01 par value each (December 31, 2021: 300,000,000 shares of $0.01 par value each) 3,000 3,000 Issued and fully paid share capital is as follows: (in thousands of $, except share data) June 30, 2022 December 31, 2021 138,551,387 common shares of $0.01 par value each (December 31, 2021: 138,551,387 shares of $0.01 par value each) 1,386 1,386 |
FINANCE LEASE LIABILITY (Tables
FINANCE LEASE LIABILITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of finance lease liabilities | (in thousands of $) June 30, 2022 December 31, 2021 Finance lease liability, current portion 52,397 51,204 Finance lease liability, long-term portion 446,426 472,996 498,823 524,200 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of amounts due from and to related parties, excluding direct financing lease balances | The Condensed Consolidated Balance Sheets include the following amounts due from and to related parties and associated companies, excluding direct financing lease receivables (refer to Note 9: Investments in Sales-Type Leases, Direct Financing Leases and Leaseback Assets). (in thousands of $) June 30, 2022 December 31, 2021 Amounts due from: Frontline 5,110 3,633 Seadrill*** — 3,643 Seatankers — 77 Golden Ocean 1,510 4,453 River Box** 8 5 Other related parties 1 1 Allowance for expected credit losses* (45) (3,255) Total amount due from related parties 6,584 8,557 Loans to related parties - associated companies, long-term River Box** 45,000 45,000 Total loans to related parties - associated companies, long-term 45,000 45,000 Amounts due to: Frontline Shipping 1,073 1,252 Frontline — 2 Golden Ocean 85 36 Seatankers 51 — Other related parties 37 5 Total amount due to related parties 1,246 1,295 * See Note 18: Allowance for Expected Credit Losses. ** River Box was previously a wholly owned subsidiary of the Company. It holds investments in direct financing leases, through its subsidiaries, related to the 19,200 and 19,400 TEU containerships MSC Anna, MSC Viviana, MSC Erica and MSC Reef . On December 31, 2020, the Company sold 50.1% of the shares of River Box to a subsidiary of Hemen, a related party, and has accounted for the remaining 49.9% ownership in River Box using the equity method. (Refer to Note 10: Investment in Associated Companies). *** SFL Hercules and SFL Linus own the drilling units West Hercules and West Linus, respectively, which are on charter to subsidiaries of Seadrill, previously a related party. On February 22, 2022, Seadrill announced that it has emerged from Chapter 11 after successfully completing its reorganization. Upon emergence a new independent board of directors assumed leadership of the new parent company of the Seadrill group, which is referred to as Seadrill 2021 Limited. Hemen’s shareholding in Seadrill 2021 Limited post-emergence from bankruptcy is also below 1%. Consequently, SFL determined that Seadrill is no longer a related party following the emergence from bankruptcy. |
Schedule of related party leasing revenues and repayments | A summary of leasing revenues and repayments from Frontline Shipping, Golden Ocean and Seadrill is as follows: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Golden Ocean: Operating lease income 25,689 25,261 Profit share 1,510 1,244 Frontline Shipping: Direct financing lease interest income 382 766 Direct financing lease service revenue 1,746 3,258 Direct financing lease repayments 1,752 3,176 Profit share — 268 Seadrill* † Direct financing lease interest income * — 3,686 Direct financing lease repayments * — 2,703 Operating lease income † 17,770 7,912 * On March 9, 2021, modifications to the charter contract in respect of the drilling unit West Linus , resulted in the lease being reclassified from a direct financing lease to an operating lease. |
Schedule of fees with related parties | In addition to leasing revenues and repayments, the Company incurred the following fees with related parties: Six months ended (in thousands of $) June 30, 2022 June 30, 2021 Frontline: Vessel Management Fees 2,669 4,249 Newbuilding Supervision Fees 466 16 Commissions and Brokerage 152 96 Administration Services Fees 2 59 Golden Ocean: Vessel Management Fees 10,135 10,136 Operating Management Fees 22 355 Administration Services Fees — 33 Seatankers: Administration Services Fees* 251 113 Front Ocean: Administration Services Fees 210 — Office Facilities: Seatankers Management Norway AS 62 54 Frontline Management AS 128 118 Frontline Corporate Services Ltd. 60 71 Flex LNG Management Ltd 3 — Golden Ocean Shipping Co Pte. Ltd. 41 — * In addition a credit note of $0.3 million |
Schedule of related party loans and interest – associated companies | Related party loans – associated companies A summary of loans entered into with the associated companies are as follows: (in millions of $) River Box Loans granted 45 Loans outstanding as of June 30, 2022 45 The loan to River Box is a fixed interest rate loan and is repayable in full on November 16, 2033 or earlier if River Box sells its assets. Interest income received on the loans to associated companies is as follows: Six months ended (in millions of $) June 30, 2022 June 30, 2021 River Box 2.3 2.3 SFL Hercules* — 1.8 * Following approval of the amendments to the charter and debt agreements, SFL Hercules was no longer deemed to be a variable interest entity and became consolidated by the Company in August 2021. The "Interest income received on the loans to associated companies" recognized was in respect of the period preceding consolidation. |
ALLOWANCE FOR EXPECTED CREDIT_2
ALLOWANCE FOR EXPECTED CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
Schedule Of Balance Sheet Items, Allowance for Credit Loss | The following table presents the impact of the allowance for expected credit losses on the Company's balance sheet line items for the six months ended June 30, 2022. (in thousands of $) Trade receivables Other receivables Related Party receivables Investment in sales-type, direct financing leases and leaseback assets Other long-term assets Total Balance as of December 31, 2021 96 486 3,255 1,263 1,888 6,988 Derecognition of Seadrill credit loss balances — — (3,200) — — (3,200) Change in allowance recorded in 'other financial items' (4) 477 (10) (1,037) (8) (582) Balance as of June 30, 2022 92 963 45 226 1,880 3,206 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of assets pledged | Assets Pledged (in millions of $) June 30, 2022 December 31, 2021 Vessels and equipment, net 2,308 2,107 Investments in sales-type, direct financing leases and leaseback assets 127 203 Book value of consolidated assets pledged under ship mortgages 2,435 2,310 |
Schedule of assets with finance lease liabilities | Assets with finance lease liabilities (in millions of $) June 30, 2022 December 31, 2021 Vessels under finance lease, net 636 656 Total book value 636 656 |
INTERIM FINANCIAL DATA (Details
INTERIM FINANCIAL DATA (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | $ (1,046,554) | $ (982,327) | $ (901,320) | |||
4.875% senior unsecured convertible notes due 2023 | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | |||||
Accumulated profit/(deficit) | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | $ 0 | 92,720 | 206,054 | $ 257,063 | ||
Additional paid-in capital | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | $ (615,913) | $ (621,037) | $ (616,426) | $ (531,382) | ||
Cumulative effect, period of adoption, adjustment | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | $ 1,600 | |||||
Cumulative effect, period of adoption, adjustment | Accumulated profit/(deficit) | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | (4,285) | $ 0 | ||||
Cumulative effect, period of adoption, adjustment | Additional paid-in capital | ||||||
Effect of recently adopted accounting standard [Line Items] | ||||||
Stockholders' equity attributable to parent | $ 5,863 | $ 0 |
GAIN_(LOSS) ON SALE OF ASSETS_2
GAIN/(LOSS) ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) vessel | Dec. 31, 2021 USD ($) | Aug. 27, 2021 USD ($) | |
Other Income And Expenses | |||
Lessor, finance lease, number of lease assets sold | vessel | 2 | ||
Financial guarantee [Member] | |||
Other Income And Expenses | |||
Amount guaranteed by Ship Finance | $ 83,000,000 | ||
Financial guarantee [Member] | Seadrill | |||
Other Income And Expenses | |||
Accounts payable | 3,000,000 | ||
Financial guarantee [Member] | SFL Hercules Ltd. (“SFL Hercules”) | |||
Other Income And Expenses | |||
Cash contribution | 5,000,000 | ||
West Linus | |||
Other Income And Expenses | |||
Bareboat charter revenues, per day | $ 55,000 | ||
SFL Hercules Ltd. (“SFL Hercules”) | Financial guarantee [Member] | |||
Other Income And Expenses | |||
Cash contribution | $ 5,000,000 | ||
Front Force and Front Energy | |||
Other Income And Expenses | |||
Gain (loss) on sale of loans and leases | 1,500,000 | ||
Proceeds from sale of vessels and termination of charters | 65,400,000 | ||
MSC Alice | |||
Other Income And Expenses | |||
Gain (loss) on sale of loans and leases | 11,700,000 | ||
Proceeds from sale of vessels and termination of charters | 13,500,000 | ||
West Taurus | |||
Other Income And Expenses | |||
Gain (loss) on disposition of property plant equipment | $ 600,000 | ||
Front Force and Front Energy | |||
Other Income And Expenses | |||
Termination fee on termination of charters | $ 4,500,000 |
EARNINGS PER SHARE (Components
EARNINGS PER SHARE (Components of EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Oct. 15, 2021 | Oct. 31, 2016 | |
Basic earnings per share: | ||||
Net income available to stockholders | $ 104,429 | $ 51,009 | ||
Diluted earnings per share: | ||||
Interest and other expenses attributable to dilutive convertible notes | 3,747 | (206) | ||
Net income assuming dilution | $ 108,176 | $ 50,803 | ||
Basic earnings per share: | ||||
Weighted average number of common shares outstanding (in shares) | 126,786,000 | 117,421,000 | ||
Diluted earnings per share: | ||||
Effect of dilutive share options (in shares) | 38,000 | 0 | ||
Effect of dilutive convertible notes (in shares) | 10,476,000 | 15,000 | ||
Weighted average number of common shares outstanding assuming dilution (in shares) | 137,300,000 | 117,436,000 | ||
Basic earnings per share (in USD per share) | $ 0.82 | $ 0.43 | ||
Diluted earnings per share (in USD per share) | $ 0.79 | $ 0.43 | ||
Own-share lending arrangement, shares, issued (in shares) | 8,000,000 | |||
Senior unsecured convertible bonds due 2021 | ||||
Diluted earnings per share: | ||||
Own-share lending arrangement, shares, issued (in shares) | 8,000,000 | |||
Senior unsecured convertible notes interest rate (in percentage) | 5.75% | |||
4.875% senior unsecured convertible notes due 2023 | ||||
Diluted earnings per share: | ||||
Own-share lending arrangement, shares, issued (in shares) | 3,765,842 | |||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | |||
Own-share lending arrangement, shares, total authorised for share lending arrangement | 7,000,000 |
OTHER FINANCIAL ITEMS (Summary
OTHER FINANCIAL ITEMS (Summary of Other Financial Items) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Other Financial Items [Abstract] | ||
Net cash movement on non-designated derivatives and swap settlements | $ (1,692) | $ (3,558) |
Net gain in fair value movements of non-designated derivatives | 12,718 | 6,937 |
Change in allowance for expected credit losses | 582 | 716 |
Other items | (1,525) | (338) |
Total other financial items, net | $ 10,083 | $ 3,757 |
OTHER FINANCIAL ITEMS (Narrativ
OTHER FINANCIAL ITEMS (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Other Financial Items [Abstract] | ||
Gain from foreign currency translation | $ (1.3) | $ 0.1 |
INVESTMENTS IN DEBT AND EQUIT_3
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Summary of debt and equity securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Corporate Bonds | $ 6,315 | $ 9,680 |
Equity securities | 14,419 | 11,530 |
Investments in debt and equity securities | $ 20,734 | $ 21,210 |
INVESTMENTS IN DEBT AND EQUIT_4
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Amortized cost to fair value) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | $ 6,315 | $ 9,680 |
Corporate Bond Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,354 | 9,049 |
Unrealized gains/(losses) | 961 | 631 |
Debt securities, available-for-sale | 6,315 | 9,680 |
NorAm Drilling Bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,132 | 4,132 |
Unrealized gains/(losses) | 487 | 487 |
Debt securities, available-for-sale | 4,619 | 4,619 |
NT Rig Holdco Liquidity 12% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,222 | 4,917 |
Unrealized gains/(losses) | 474 | 144 |
Debt securities, available-for-sale | $ 1,696 | $ 5,061 |
Debt instrument, redemption price (in percentage) | 12% | 12% |
NT Rig Holdco 7.5% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
Unrealized gains/(losses) | 0 | 0 |
Debt securities, available-for-sale | $ 0 | 0 |
Debt instrument, redemption price (in percentage) | 7.50% | |
Oro Negro 7.5% | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 0 | 0 |
Unrealized gains/(losses) | 0 | 0 |
Debt securities, available-for-sale | $ 0 | $ 0 |
Debt instrument, redemption price (in percentage) | 7.50% |
INVESTMENTS IN DEBT AND EQUIT_5
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2022 shares | Mar. 31, 2021 USD ($) vessel | Jun. 30, 2022 USD ($) jackUpRig shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 shares | Jun. 30, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||||
Impairment loss | $ (800) | |||||||
Gain on investments in debt and equity securities | $ 4,466 | $ 3,933 | ||||||
Debt securities, available-for-sale | $ 6,315 | 9,680 | ||||||
Equity securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from sale of equity securities | $ 800 | |||||||
ADS Maritime Holding | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from dividends received | $ 8,800 | |||||||
Number of vessels sold | vessel | 2 | |||||||
Debt and equity securities, realized gain | $ 700 | |||||||
Corporate Bond Securities Oro Negro 12% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 12% | |||||||
Oro Negro 7.5% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 7.50% | |||||||
Debt securities, available-for-sale | $ 0 | $ 0 | ||||||
NT Rig Holdco Liquidity 12% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 12% | 12% | ||||||
Purchase of corporate bonds | $ 1,400 | |||||||
Proceeds from corporate bonds | $ 5,100 | |||||||
Number of jack up rigs | jackUpRig | 5 | |||||||
Gain on investments in debt and equity securities | $ 1,400 | |||||||
Debt securities, available-for-sale | $ 1,696 | $ 5,061 | ||||||
NT Rig Holdco 7.5% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 7.50% | |||||||
Debt securities, available-for-sale | $ 0 | $ 0 | ||||||
Common stock - Frontline Ltd | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt and equity securities, realized gain | $ 2,300 | |||||||
Investment owned, balance (in shares) | shares | 1.4 | 1.4 | ||||||
Number of shares repurchased in forward contract (in shares) | shares | 1.4 | 3.4 | ||||||
Principal debt amount | $ 15,600 | $ 15,600 | $ 36,800 | |||||
Sale of equity securities, number of shares | shares | 2 | |||||||
Proceeds from sale and maturity of equity securities | $ 21,100 | |||||||
Forward contract to repurchase shares | 16,600 | $ 16,400 | ||||||
Common stock - Frontline Ltd | Subsequent event | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Number of shares repurchased in forward contract (in shares) | shares | 1.4 | |||||||
Common stock - Frontline Ltd | Frontline forward contract | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Forward contract to repurchase shares | $ 16,600 |
INVESTMENTS IN DEBT AND EQUIT_6
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Equity instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Total Equity Securities | $ 14,419 | $ 11,530 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Frontline | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Total Equity Securities | 12,830 | 10,238 |
NorAm Drilling | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Total Equity Securities | $ 1,589 | $ 1,292 |
VESSELS AND EQUIPMENT, NET (Sum
VESSELS AND EQUIPMENT, NET (Summary of Vessels and Equipment, Net) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ (91,313) | $ (60,392) | |
Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Vessel additions | 190,000 | ||
Cost | |||
Property, Plant and Equipment [Line Items] | |||
Capital improvements | 500 | ||
Cost | Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost, beginning balance | 2,973,401 | $ 2,782,909 | |
Depreciation | 0 | ||
Vessel additions | 190,000 | ||
Capital improvements | 492 | ||
Cost, ending balance | 2,973,401 | 2,782,909 | |
Accumulated Depreciation | Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation, beginning balance | (623,154) | (552,326) | |
Depreciation | (70,828) | ||
Vessel additions | 0 | ||
Capital improvements | 0 | ||
Accumulated depreciation, ending balance | (623,154) | (552,326) | |
Vessels and Equipment, net | Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, Net beginning balance | 2,350,247 | 2,230,583 | |
Depreciation | (70,828) | ||
Vessel additions | 190,000 | ||
Capital improvements | 492 | ||
Vessels and equipment, Net ending balance | $ 2,350,247 | $ 2,230,583 |
VESSELS AND EQUIPMENT, NET (Nar
VESSELS AND EQUIPMENT, NET (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) vessel | Jun. 30, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of vessels for which costs have been capitalized | vessel | 1 | |
Vessel impairment charge | $ 0 | $ 1,927,000 |
Impairment charge on reclassified assets | 1,900,000 | |
Suezmax tanker | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels acquired | vessel | 2 | |
Product tanker | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels acquired | vessel | 2 | |
All vessels classified under vessels and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Vessel impairment charge | $ 0 | $ 0 |
Vessels and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Vessel additions | 190,000,000 | |
Cost | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | 500,000 | |
Cost | Vessels and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | 492,000 | |
Vessel additions | $ 190,000,000 |
NEWBUILDINGS AND VESSEL PURCH_2
NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) vessel | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) tanker | |
Property, Plant and Equipment [Line Items] | |||
Additions to newbuildings and vessel purchase deposits | $ 15,675 | $ 18,783 | |
Volkswagen Group | |||
Property, Plant and Equipment [Line Items] | |||
Term of lease or charter | 10 years | ||
Volkswagen Group | Dual-fuel car carriers (Volkswagen) | |||
Property, Plant and Equipment [Line Items] | |||
Total installments paid | $ 30,100 | $ 14,900 | |
Number of dual-fuel car carriers | vessel | 2 | ||
K Line | |||
Property, Plant and Equipment [Line Items] | |||
Term of lease or charter | 10 years | ||
K Line | 2 dual-fuel car carriers (K Line) | |||
Property, Plant and Equipment [Line Items] | |||
Total installments paid | $ 31,700 | 31,200 | |
Number of dual-fuel car carriers | vessel | 2 | ||
Trafigura | |||
Property, Plant and Equipment [Line Items] | |||
Additions to newbuildings and vessel purchase deposits | $ 11,000 | ||
Trafigura | Suezmax tanker | |||
Property, Plant and Equipment [Line Items] | |||
Number of Suezmax Tankers acquired | tanker | 2 |
VESSELS UNDER FINANCE LEASE, _3
VESSELS UNDER FINANCE LEASE, NET (Summary) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Cost | ||
Beginning balance | $ 777,939 | |
Ending balance | 777,939 | |
Accumulated Depreciation | ||
Beginning balance | (121,867) | |
Depreciation | (20,485) | |
Ending balance | (142,352) | |
Vessels Under Finance Lease, net [Abstract] | ||
Balance as of December 31, 2021 | $ 656,072 | |
Depreciation | (20,485) | |
Balance as of June 30, 2022 | $ 635,587 | $ 656,072 |
VESSELS UNDER FINANCE LEASE, _4
VESSELS UNDER FINANCE LEASE, NET (Narrative) (Details) | Jun. 30, 2022 containership vessel |
Property, Plant and Equipment [Line Items] | |
Number of container vessels accounted for as right of use assets | vessel | 7 |
13,800 TEU Containership | |
Property, Plant and Equipment [Line Items] | |
Number of container vessels accounted for as right of use assets | 4 |
10,600 TEU Containership | |
Property, Plant and Equipment [Line Items] | |
Number of container vessels accounted for as right of use assets | 3 |
INVESTMENTS IN SALES-TYPE LEA_3
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS (Summary) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | $ 76,780 | $ 163,514 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (34,128) | |
Net minimum lease payments receivable | 76,780 | 129,386 |
Estimated residual values of leased property (unguaranteed) | 74,650 | 111,121 |
Less: unearned income | (24,443) | (34,478) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 126,987 | 206,029 |
Allowance for expected credit losses | (226) | (1,263) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 126,761 | 204,766 |
Current portion | 15,544 | 23,484 |
Long-term portion | 111,217 | 181,282 |
Sales-Type Leases and Direct Financing Leases | ||
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | 38,112 | 120,411 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | (34,128) | |
Net minimum lease payments receivable | 38,112 | 86,283 |
Estimated residual values of leased property (unguaranteed) | 43,150 | 79,621 |
Less: unearned income | (9,472) | (17,532) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 71,790 | 148,372 |
Allowance for expected credit losses | (110) | (1,142) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 71,680 | 147,230 |
Current portion | 10,450 | 18,436 |
Long-term portion | 61,230 | 128,794 |
Leaseback Assets | ||
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | 38,668 | 43,103 |
Less: amounts representing estimated executory costs including profit thereon, included in total minimum lease payments | 0 | |
Net minimum lease payments receivable | 38,668 | 43,103 |
Estimated residual values of leased property (unguaranteed) | 31,500 | 31,500 |
Less: unearned income | (14,971) | (16,946) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 55,197 | 57,657 |
Allowance for expected credit losses | (116) | (121) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 55,081 | 57,536 |
Current portion | 5,094 | 5,048 |
Long-term portion | $ 49,987 | $ 52,488 |
INVESTMENTS IN SALES-TYPE LEA_4
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS (Narrative) (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2022 vessel | Jun. 30, 2022 vessel tanker | Dec. 31, 2020 | Dec. 31, 2021 tanker vessel | |
Landbridge Universal Limited | ||||
Sale Leaseback Transaction [Line Items] | ||||
Term of lease or charter | 7 years | |||
Term of lease or charter, purchase obligation period | 7 years | |||
Sales-Type Leases and Direct Financing Leases | ||||
Sale Leaseback Transaction [Line Items] | ||||
Number of vessels under investments in sales-type leases, direct financing leases and leaseback assets | 9 | 12 | ||
Assets accounted for as sales-type lease | 9 | 10 | ||
Assets accounted for as sales-type lease, number sold | 1 | |||
Sales-Type Leases and Direct Financing Leases | Frontline Shipping | ||||
Sale Leaseback Transaction [Line Items] | ||||
Assets accounted for as direct financing leases and leased to related parties | tanker | 2 | |||
Assets accounted for as direct financing lease, number sold | tanker | 2 | |||
Leaseback Assets | ||||
Sale Leaseback Transaction [Line Items] | ||||
Number of vessels under investments in sales-type leases, direct financing leases and leaseback assets | 1 | 1 |
INVESTMENTS IN ASSOCIATED COM_3
INVESTMENTS IN ASSOCIATED COMPANIES (Summary) (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disposal group, disposed of by sale, not discontinued operations | River Box Holding Inc. ("River Box") | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Subsidiary, percentage ownership sold (in percentage) | 50.10% | |||
River Box Holding Inc. ("River Box") | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Participation in equity method investee (in percentage) | 49.90% | 49.90% | 49.90% | |
Equity method investment, ownership percentage | 49.90% | |||
SFL Hercules Ltd. (“SFL Hercules”) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Participation in equity method investee (in percentage) | 100% |
INVESTMENTS IN ASSOCIATED COM_4
INVESTMENTS IN ASSOCIATED COMPANIES (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Aug. 27, 2021 | |
River Box Holding Inc. ("River Box") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Participation in equity method investee (in percentage) | 49.90% | 49.90% | 49.90% | ||
Financial guarantee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount guaranteed by Ship Finance | $ 83,000,000 | ||||
Seadrill | Financial guarantee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts payable | 3,000,000 | ||||
River Box Holding Inc. ("River Box") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from dividends received | $ 1,500,000 | $ 700,000 | $ 2,200,000 | ||
SFL Hercules Ltd. (“SFL Hercules”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from dividends received | $ 0 | $ 0 | |||
SFL Hercules Ltd. (“SFL Hercules”) | Financial guarantee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash contribution | $ 5,000,000 | ||||
West Hercules | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Bareboat charter revenues, per day | $ 64,700 | ||||
Bareboat charter revenues, per day, after emergence date | 60,000 | ||||
Bareboat charter revenues, per day, other scenarios | $ 40,000 |
INVESTMENTS IN ASSOCIATED COM_5
INVESTMENTS IN ASSOCIATED COMPANIES (Balance sheet information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | $ 330,968 | $ 250,316 | |
Total assets | 3,589,799 | 3,459,297 | |
Current liabilities | 860,188 | 400,316 | |
Total liabilities | 2,543,245 | 2,476,970 | |
Equity method investment, nonconsolidated investee, other | |||
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | 14,417 | 13,987 | |
Non-current assets | 241,137 | 247,361 | |
Total assets | 255,554 | 261,348 | |
Current liabilities | 13,609 | 13,242 | |
Non-current liabilities | 225,361 | 231,471 | |
Total liabilities | 238,970 | 244,713 | |
Total stockholders’ equity | 16,584 | 16,635 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | 14,417 | 13,987 | |
Non-current assets | 241,137 | 247,361 | |
Total assets | 255,554 | 261,348 | |
Current liabilities | 13,609 | 13,242 | |
Non-current liabilities | 225,361 | 231,471 | |
Total liabilities | 238,970 | 244,713 | |
Total stockholders’ equity | $ 16,584 | $ 16,635 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Participation in equity method investee (in percentage) | 49.90% | 49.90% | 49.90% |
INVESTMENTS IN ASSOCIATED COM_6
INVESTMENTS IN ASSOCIATED COMPANIES (Income statement information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | $ 305,686 | $ 225,890 | |
Equity method investment, nonconsolidated investee, other | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | 9,665 | 20,141 | |
Net operating revenues | 9,654 | 15,082 | |
Net income | 1,405 | 2,564 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | 9,665 | 10,076 | |
Net operating revenues | 9,654 | 10,065 | |
Net income | $ 1,405 | 1,819 | |
SFL Hercules Ltd. (“SFL Hercules”) | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | 10,065 | ||
Net operating revenues | 5,017 | ||
Net income | $ 745 | ||
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Participation in equity method investee (in percentage) | 49.90% | 49.90% | 49.90% |
SFL Hercules Ltd. (“SFL Hercules”) | |||
Schedule of Equity Method Investments [Line Items] | |||
Participation in equity method investee (in percentage) | 100% |
INVESTMENTS IN ASSOCIATED COM_7
INVESTMENTS IN ASSOCIATED COMPANIES (Movements) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Allowance for credit loss, beginning balance | $ 6,988 | ||
Allowance recorded in net income of associated companies | (582) | ||
Allowance for credit loss, ending balance | 3,206 | $ 6,988 | |
Equity method investment, nonconsolidated investee, other | |||
Schedule of Equity Method Investments [Line Items] | |||
Allowance for credit loss, beginning balance | 396 | ||
Allowance recorded in net income of associated companies | (9) | ||
Allowance for credit loss, ending balance | 387 | 396 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Allowance for credit loss, beginning balance | 396 | ||
Allowance recorded in net income of associated companies | (9) | ||
Allowance for credit loss, ending balance | $ 387 | $ 396 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Participation in equity method investee (in percentage) | 49.90% | 49.90% | 49.90% |
SFL Hercules Ltd. (“SFL Hercules”) | |||
Schedule of Equity Method Investments [Line Items] | |||
Participation in equity method investee (in percentage) | 100% |
OTHER LONG TERM ASSETS (Schedul
OTHER LONG TERM ASSETS (Schedule of Long-Term Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Capital improvements in progress | $ 284 | $ 591 |
Collateral deposits on swap agreements | 12,000 | 10,368 |
Value of acquired charter-out contracts, net | 6,171 | 7,607 |
Other | 0 | 566 |
Other long-term assets | $ 18,455 | $ 19,132 |
OTHER LONG TERM ASSETS (Narrati
OTHER LONG TERM ASSETS (Narrative) (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) vessel | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2021 vessel | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) vessel | |
Property, Plant and Equipment [Line Items] | ||||||
Number of vessels for which costs have been capitalized | vessel | 1 | |||||
Number of container vessels accounted for as right of use assets | vessel | 7 | |||||
Other long term previously included in receivables | $ 1,900,000 | |||||
Financing receivable, credit loss, expense | $ 1,900,000 | |||||
Financing receivable, after allowance for credit loss | $ 0 | |||||
Financing receivable, allowance for credit loss | $ 0 | |||||
Cost | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Capital improvements | $ 500,000 | |||||
Construction in Progress | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of vessels being upgraded | vessel | 2 | 3 | ||||
Evergreen Marine | Container vessels | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of container vessels accounted for as right of use assets | vessel | 4 | |||||
Charters value on aquisition | $ 18,000,000 | |||||
Amortization | $ 1,400,000 | $ 1,400,000 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT (Summary of long-term debt) (Details) $ in Thousands, kr in Millions | Jun. 30, 2022 USD ($) | Jun. 30, 2022 NOK (kr) | Dec. 31, 2021 USD ($) | Jun. 30, 2020 USD ($) |
Debt Instrument [Line Items] | ||||
Total debt principal | $ 1,975,610 | $ 1,903,755 | ||
Less: Unamortized debt issuance costs | (12,069) | (14,541) | ||
Less: Current portion of long-term debt | (760,473) | (302,769) | ||
Total long-term debt | 1,203,068 | 1,586,445 | ||
Common stock - Frontline Ltd | ||||
Debt Instrument [Line Items] | ||||
Principal debt amount | 15,600 | 15,600 | $ 36,800 | |
Long-term debt, gross | 15,639 | 15,639 | ||
NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal debt amount | kr | kr 700 | |||
Long-term debt, gross | 70,930 | 79,507 | ||
NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Debt Instrument [Line Items] | ||||
Principal debt amount | kr | 700 | |||
Long-term debt, gross | 70,423 | 78,939 | ||
NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Debt Instrument [Line Items] | ||||
Principal debt amount | kr | kr 600 | |||
Long-term debt, gross | 54,717 | 61,334 | ||
4.875% senior unsecured convertible notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 137,900 | 137,900 | ||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | ||
7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | 7.25% | ||
7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150,000 | 150,000 | ||
Lease debt financing | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 167,409 | 126,955 | ||
Fixed Rate and Foreign Debt | ||||
Debt Instrument [Line Items] | ||||
Total Fixed Rate and Foreign Debt | 667,018 | 650,274 | ||
U.S. Dollar Floating Rate Debt | ||||
Debt Instrument [Line Items] | ||||
U.S. Dollar Floating Rate Debt | $ 1,308,592 | $ 1,253,481 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT (Movement) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||
Total debt principal, beginning period | $ 1,903,755 | |
Drawdowns | 255,350 | $ 252,000 |
Repayments and redemptions | (159,786) | |
Effects of foreign exchange | (23,709) | |
Total debt principal, ending period | 1,975,610 | |
Fixed Rate and Foreign Debt | ||
Debt Instrument [Line Items] | ||
Long term debt, beginning of the period | 650,274 | |
Drawdowns | 48,750 | |
Repayments and redemptions | (8,297) | |
Effects of foreign exchange | (23,709) | |
Long term debt, end of period | 667,018 | |
U.S. Dollar Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Long term debt with floating interest rate, beginning of period | 1,253,481 | |
Drawdowns | 206,600 | |
Repayments and redemptions | (151,489) | |
Effects of foreign exchange | 0 | |
Long term debt with floating interest rate, end of period | $ 1,308,592 |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBT (Interest rate information) (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 3.61% | 2.68% |
US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate | 2.29% | 0.21% |
Secured Overnight Financing Rate ("SOFR"), closing rate | 1.50% | 0.05% |
Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate | 1.68% | 0.95% |
SHORT-TERM AND LONG-TERM DEBT_5
SHORT-TERM AND LONG-TERM DEBT (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2022 USD ($) shares | Apr. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) carrier shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 shares | Jun. 30, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||
Gain on repurchase of debt | $ 700 | ||||||
Repayments of debt | $ 159,786 | ||||||
Restricted cash | $ 5,714 | 5,866 | $ 8,338 | ||||
Common stock - Frontline Ltd | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares repurchased in forward contract (in shares) | shares | 1.4 | 3.4 | |||||
Forward contract to repurchase shares | $ 16,600 | 16,400 | |||||
Principal debt amount | $ 15,600 | 15,600 | $ 36,800 | ||||
Secured borrowings, collateral, total repurchase price (in percentage) | 20% | ||||||
Common stock - Frontline Ltd | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Forward contract to repurchase shares | $ 16,700 | ||||||
Common stock - Frontline Ltd | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares repurchased in forward contract (in shares) | shares | 1.4 | ||||||
4.875% senior unsecured convertible notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 2,000 | ||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | ||||||
Senior unsecured convertible bonds due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 65,300 | $ 69,600 | |||||
Senior unsecured convertible notes interest rate (in percentage) | 5.75% | ||||||
Lease debt financing | |||||||
Debt Instrument [Line Items] | |||||||
Number of vessels under sale and leaseback transactions | carrier | 2 | ||||||
Term of lease or charter | 3 years | ||||||
Lease debt financing | 6500 CEU car carrier 1 | |||||||
Debt Instrument [Line Items] | |||||||
Sales price for the vessel | $ 23,500 | ||||||
Long-term debt | $ 22,800 | ||||||
Lease debt financing | 6500 CEU car carrier 2 | |||||||
Debt Instrument [Line Items] | |||||||
Sales price for the vessel | $ 25,300 | ||||||
Long-term debt | $ 24,500 |
SHORT-TERM AND LONG-TERM DEBT_6
SHORT-TERM AND LONG-TERM DEBT (US floating rate) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) subsidiary | |
Debt Instrument [Line Items] | |
Repayments of debt | $ 159,786 |
$107.25 million term loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 107,250 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 3 |
Term | 5 years |
Long-term debt | $ 105,200 |
Line of credit facility, drawn amount | 71,500 |
$35 million term and revolving loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 35,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 2 |
Term | 3 years |
Long-term debt | $ 0 |
$100 million term loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 100,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 4 |
Term | 5 years |
Long-term debt | $ 97,500 |
$50 million secured term loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 50,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 3 |
Term | 4 years |
Repayments of debt | $ 35,200 |
$29.5 million term loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 29,500 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 2 |
Term | 5 years |
Repayments of debt | $ 18,000 |
$35 million term and revolving loan facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 35,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 2 |
Term | 3 years |
Repayments of debt | $ 35,100 |
FINANCIAL INSTRUMENTS (Schedule
FINANCIAL INSTRUMENTS (Schedule of fair values of derivative instruments designated and not designated as cash flow hedges) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Total derivative instruments - short-term assets | $ 792 | $ 0 |
Total derivative instruments - long-term assets | 19,972 | 3,184 |
Total derivative instruments - short-term liabilities | 13 | 738 |
Financial instruments at fair value, long-term portion | 33,559 | 17,209 |
Interest rate swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Total derivative instruments - long-term assets | 10,711 | 2,077 |
Total derivative instruments - short-term liabilities | 0 | 68 |
Financial instruments at fair value, long-term portion | 0 | 2,316 |
Interest rate swaps | Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | 9,261 | 88 |
Total derivative instruments - short-term liabilities | 13 | 670 |
Financial instruments at fair value, long-term portion | 0 | 2,159 |
Cross currency swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Total derivative instruments - long-term assets | 0 | 1,019 |
Financial instruments at fair value, long-term portion | 25,719 | 10,038 |
Cross currency swaps | Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Financial instruments at fair value, long-term portion | 73 | 11 |
Cross currency interest rate swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Financial instruments at fair value, long-term portion | $ 7,767 | $ 2,685 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Thousands, kr in Millions | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 | Jun. 30, 2022 NOK (kr) | Dec. 31, 2021 USD ($) | Aug. 27, 2021 USD ($) | |
Derivative [Line Items] | |||||
Debt securities, available-for-sale | $ 6,315 | $ 9,680 | |||
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | |||
Financial guarantee [Member] | |||||
Derivative [Line Items] | |||||
Amount guaranteed by Ship Finance | $ 83,000 | ||||
Financial guarantee [Member] | SFL Hercules Ltd. (“SFL Hercules”) | |||||
Derivative [Line Items] | |||||
Cash contribution | 5,000 | ||||
Financial guarantee [Member] | Seadrill | |||||
Derivative [Line Items] | |||||
Accounts payable | $ 3,000 | ||||
SFL Hercules Ltd. (“SFL Hercules”) | Financial guarantee [Member] | |||||
Derivative [Line Items] | |||||
Amount guaranteed by Ship Finance | 83,000 | ||||
River Box Holding Inc. ("River Box") | |||||
Derivative [Line Items] | |||||
Loans to related parties - associated companies, long-term | $ 45,000 | 45,000 | |||
Seadrill | Sales revenue, net | Customer concentration risk | |||||
Derivative [Line Items] | |||||
Concentration risk, percentage | 10% | 5% | |||
Associated companies | Net income | Customer concentration risk | |||||
Derivative [Line Items] | |||||
Concentration risk, percentage | 1% | ||||
4.875% senior unsecured convertible notes due 2023 | |||||
Derivative [Line Items] | |||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | |||
NOK700 million senior unsecured floating rate bonds due 2023 | |||||
Derivative [Line Items] | |||||
Principal debt amount | kr | kr 700 | ||||
NOK700 million senior unsecured floating rate bonds due 2024 | |||||
Derivative [Line Items] | |||||
Principal debt amount | kr | 700 | ||||
NOK600 million senior unsecured floating rate bonds due 2025 | |||||
Derivative [Line Items] | |||||
Principal debt amount | kr | kr 600 | ||||
7.25% senior unsecured sustainability-linked bonds due 2026 | |||||
Derivative [Line Items] | |||||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | 7.25% | |||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 600,000 | $ 700,000 |
FINANCIAL INSTRUMENTS (Schedu_2
FINANCIAL INSTRUMENTS (Schedule of currency swap transactions) (Details) - Jun. 30, 2022 - Designated as hedging instrument kr in Millions, $ in Millions | USD ($) | NOK (kr) |
Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 76.8 | kr 600 |
Cross Currency Interest Rate Contract 2 | ||
Derivative [Line Items] | ||
Derivative, notional amount | 11.3 | 100 |
Cross Currency Interest Rate Contract 3 | ||
Derivative [Line Items] | ||
Derivative, notional amount | 80.5 | 700 |
Cross Currency Interest Rate Contract 4 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 67.5 | kr 600 |
FINANCIAL INSTRUMENTS (Schedu_3
FINANCIAL INSTRUMENTS (Schedule of carrying value and estimated fair value of financial assets and liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Non-derivatives: | ||
Available-for-sale debt securities | $ 6,315 | $ 9,680 |
Equity securities | 14,419 | 11,530 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Derivatives: | ||
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | $ 19,972 | 3,184 |
4.875% senior unsecured convertible notes due 2023 | ||
Non-derivatives: | ||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | |
7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Non-derivatives: | ||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | |
Carrying value | Fair value, measurements, recurring | ||
Non-derivatives: | ||
Available-for-sale debt securities | $ 6,315 | 9,680 |
Equity securities | 1,589 | 1,292 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Derivatives: | ||
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | 19,972 | 3,184 |
Interest rate/currency swap contracts - short-term payables | 13 | 738 |
Interest rate/currency swaps, long-term payables | 33,559 | 17,209 |
Carrying value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2023 | ||
Non-derivatives: | ||
Long-term debt | 70,930 | 79,507 |
Carrying value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2024 | ||
Non-derivatives: | ||
Long-term debt | 70,423 | 78,939 |
Carrying value | Fair value, measurements, recurring | NOK600 million senior unsecured floating rate bonds due 2025 | ||
Non-derivatives: | ||
Long-term debt | 54,717 | 61,334 |
Carrying value | Fair value, measurements, recurring | 4.875% senior unsecured convertible notes due 2023 | ||
Non-derivatives: | ||
Long-term debt | 137,900 | 137,900 |
Carrying value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Non-derivatives: | ||
Long-term debt | 150,000 | 150,000 |
Fair value | Fair value, measurements, recurring | ||
Non-derivatives: | ||
Available-for-sale debt securities | 6,315 | 9,680 |
Equity securities | 1,589 | 1,292 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Derivatives: | ||
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | 19,972 | 3,184 |
Interest rate/currency swap contracts - short-term payables | 13 | 738 |
Interest rate/currency swaps, long-term payables | 33,559 | 17,209 |
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2023 | ||
Non-derivatives: | ||
Long-term debt | 71,462 | 79,586 |
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2024 | ||
Non-derivatives: | ||
Long-term debt | 70,923 | 79,077 |
Fair value | Fair value, measurements, recurring | NOK600 million senior unsecured floating rate bonds due 2025 | ||
Non-derivatives: | ||
Long-term debt | 54,444 | 60,133 |
Fair value | Fair value, measurements, recurring | 4.875% senior unsecured convertible notes due 2023 | ||
Non-derivatives: | ||
Long-term debt | 139,555 | 138,727 |
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Non-derivatives: | ||
Long-term debt | $ 140,625 | $ 153,563 |
FINANCIAL INSTRUMENTS (Schedu_4
FINANCIAL INSTRUMENTS (Schedule of financial assets and liabilities measured at fair value on a recurring basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Available-for-sale debt securities | $ 6,315 | $ 9,680 |
Equity securities | 14,419 | 11,530 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | 19,972 | 3,184 |
Fair value | Fair value, measurements, recurring | ||
Assets: | ||
Available-for-sale debt securities | 6,315 | 9,680 |
Equity securities | 1,589 | 1,292 |
Equity securities pledged to creditors | 12,830 | 10,238 |
Total derivative instruments - short-term assets | 792 | 0 |
Total derivative instruments - long-term assets | 19,972 | 3,184 |
Total assets | 41,498 | |
Liabilities: | ||
NOK700 million senior unsecured floating rate bonds due 2023 | 71,462 | |
NOK700 million senior unsecured floating rate bonds due 2024 | 70,923 | |
NOK600 million senior unsecured floating rate bonds due 2025 | 54,444 | |
Interest rate/currency swaps, short-term payables | 13 | |
Interest rate/currency swaps, long-term payables | 33,559 | 17,209 |
Total liabilities | 510,581 | |
Fair value | Fair value, measurements, recurring | 4.875% senior unsecured convertible notes due 2023 | ||
Liabilities: | ||
Long-term debt | 139,555 | 138,727 |
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Liabilities: | ||
Long-term debt | 140,625 | 153,563 |
Fair value | Fair value, measurements, recurring | 4.875% senior unsecured convertible notes due 2023 | ||
Liabilities: | ||
Convertible Debt, Fair Value Disclosures | 139,555 | |
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Liabilities: | ||
Long-term debt | 140,625 | |
Fair value | Fair value, measurements, recurring | Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Available-for-sale debt securities | 4,619 | |
Equity securities | 1,589 | |
Equity securities pledged to creditors | 12,830 | |
Total assets | 19,038 | |
Liabilities: | ||
NOK700 million senior unsecured floating rate bonds due 2023 | 71,462 | |
NOK700 million senior unsecured floating rate bonds due 2024 | 70,923 | |
NOK600 million senior unsecured floating rate bonds due 2025 | 54,444 | |
Total liabilities | 477,009 | |
Fair value | Fair value, measurements, recurring | Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) | 4.875% senior unsecured convertible notes due 2023 | ||
Liabilities: | ||
Convertible Debt, Fair Value Disclosures | 139,555 | |
Fair value | Fair value, measurements, recurring | Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||
Liabilities: | ||
Convertible Debt, Fair Value Disclosures | 140,625 | |
Fair value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Available-for-sale debt securities | 1,696 | $ 5,100 |
Total derivative instruments - short-term assets | 792 | |
Total derivative instruments - long-term assets | 19,972 | |
Total assets | 22,460 | |
Liabilities: | ||
Interest rate/currency swaps, short-term payables | 13 | |
Interest rate/currency swaps, long-term payables | 33,559 | |
Total liabilities | 33,572 | |
Fair value | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | $ 0 |
FINANCIAL INSTRUMENTS (Schedu_5
FINANCIAL INSTRUMENTS (Schedule of concentration of revenue risk) (Details) - vessel | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Frontline Shipping | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 0 | |
Frontline Shipping | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 1% | 2% |
Golden Ocean Group Limited (“Golden Ocean”)* | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 8 | |
Golden Ocean Group Limited (“Golden Ocean”)* | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 9% | 12% |
MSC | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 9 | |
MSC | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 1% | 3% |
Maersk A/S (“Maersk”) | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 15 | |
Maersk A/S (“Maersk”) | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 31% | 33% |
Evergreen | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 6 | |
Evergreen | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 17% | 15% |
Trafigura | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels | 7 | |
Trafigura | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 9% | 0% |
SHARE CAPITAL, ADDITIONAL PAI_3
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Summary of Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Value of authorized share capital | $ 3,000 | $ 3,000 |
Value of issued and fully paid share capital | $ 1,386 | $ 1,386 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 138,551,387 | 138,551,387 |
Common stock issued, par value (in usd per share) | $ 0.01 | $ 0.01 |
SHARE CAPITAL, ADDITIONAL PAI_4
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | May 12, 2022 | Apr. 15, 2022 | Feb. 16, 2022 | Jan. 01, 2022 | Jan. 01, 2021 | Dec. 31, 2020 | May 01, 2020 | |
Stockholders' equity attributable to parent | $ 1,046,554 | $ 901,320 | $ 982,327 | |||||||
Dividends payable (in usd per share) | $ 0.22 | $ 0.20 | ||||||||
Shares issued, net of issuance costs | 0 | 83,428 | ||||||||
Repayments of debt | 159,786 | |||||||||
Dividend reinvestment plan (drip) | ||||||||||
Dividend reinvestment plan, maximum number of shares authorized (in shares) | 10,000,000 | 10,000,000 | ||||||||
At the market | ||||||||||
Equity distribution agreement, maximum value of shares authorized | $ 100,000 | |||||||||
At the market and dividend reinvestment plan | ||||||||||
Shares issued (in shares) | 10,700,000 | |||||||||
Shares issued, net of issuance costs | $ 89,400 | |||||||||
Shares issued, premium | 89,300 | |||||||||
Accumulated profit/(deficit) | ||||||||||
Stockholders' equity attributable to parent | 0 | (206,054) | (92,720) | $ (257,063) | ||||||
Dividends, common stock | (15,994) | 0 | ||||||||
Additional paid-in capital | ||||||||||
Stockholders' equity attributable to parent | 615,913 | 616,426 | 621,037 | $ 531,382 | ||||||
Equity adjustment arising from reacquisition of convertible notes | 0 | (492) | ||||||||
Contributed surplus | ||||||||||
Dividends, common stock | $ (37,300) | (77,600) | ||||||||
Cumulative effect, period of adoption, adjustment | ||||||||||
Stockholders' equity attributable to parent | $ (1,600) | |||||||||
Cumulative effect, period of adoption, adjustment | Accumulated profit/(deficit) | ||||||||||
Stockholders' equity attributable to parent | 4,285 | $ 0 | ||||||||
Cumulative effect, period of adoption, adjustment | Additional paid-in capital | ||||||||||
Stockholders' equity attributable to parent | $ (5,863) | $ 0 | ||||||||
4.875% senior unsecured convertible notes due 2023 | ||||||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | |||||||||
Repayments of debt | 2,000 | |||||||||
Senior unsecured convertible bonds due 2021 | ||||||||||
Senior unsecured convertible notes interest rate (in percentage) | 5.75% | |||||||||
Repayments of debt | $ 65,300 | 69,600 | ||||||||
Equity adjustment arising from reacquisition of convertible notes | $ 500 |
SHARE OPTION PLAN (Details)
SHARE OPTION PLAN (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options awarded (shares) | 435,000 | ||
Options, expected term | 5 years | ||
Vesting period of options awarded to employees | 3 years | ||
Initial strike price (usd per share) | $ 8.73 | ||
Unrecognized compensation costs related to non-vested options granted | $ 1.6 | $ 1 | |
Additional paid-in capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock options, compensation cost recognized in the period | $ 0.7 |
FINANCE LEASE LIABILITY (Narrat
FINANCE LEASE LIABILITY (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) containership | Jun. 30, 2021 USD ($) | Dec. 31, 2021 containership | |
Other Liabilities Disclosure [Abstract] | |||
Number of container vessels under sale and leaseback transactions | 7 | 7 | |
Number of vessels under finance lease liability accounted for as vessels under finance lease | 7 | ||
Interest incurred on capital leases | $ | $ 12 | $ 13.1 |
FINANCE LEASE LIABILITY (Obliga
FINANCE LEASE LIABILITY (Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Finance lease liability, current portion | $ 52,397 | $ 51,204 |
Finance lease liability, long-term portion | 446,426 | 472,996 |
Finance lease liability | $ 498,823 | $ 524,200 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of amounts due from and to related parties, excluding direct financing lease balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Feb. 22, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | $ 6,584 | $ 8,557 | ||
Allowance for expected credit losses | (3,206) | (6,988) | ||
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | ||
Due to related parties | 1,246 | 1,295 | ||
Hemen | ||||
Amounts due from and to related parties [Abstract] | ||||
Ownership percentage | 1% | |||
Disposal group, disposed of by sale, not discontinued operations | River Box Holding Inc. ("River Box") | ||||
Amounts due from and to related parties [Abstract] | ||||
Subsidiary, percentage ownership sold (in percentage) | 50.10% | |||
River Box Holding Inc. ("River Box") | ||||
Amounts due from and to related parties [Abstract] | ||||
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | ||
Equity method investment, ownership percentage | 49.90% | |||
Frontline | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 5,110 | 3,633 | ||
Due to related parties | 0 | 2 | ||
Seadrill | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 0 | 3,643 | ||
Seatankers | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 0 | 77 | ||
Due to related parties | 51 | 0 | ||
Golden Ocean | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 1,510 | 4,453 | ||
Due to related parties | 85 | 36 | ||
River Box Holding Inc. ("River Box") | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 8 | 5 | ||
Other related parties | ||||
Amounts due from and to related parties [Abstract] | ||||
Due from related parties | 1 | 1 | ||
Due to related parties | 37 | 5 | ||
Allowance for expected credit losses | ||||
Amounts due from and to related parties [Abstract] | ||||
Allowance for expected credit losses | (45) | (3,255) | ||
Frontline Shipping | ||||
Amounts due from and to related parties [Abstract] | ||||
Due to related parties | $ 1,073 | $ 1,252 |
RELATED PARTY TRANSACTIONS (S_2
RELATED PARTY TRANSACTIONS (Schedule of related party leasing revenues and repayments) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Profit sharing income – related parties | $ 1,510 | $ 1,512 |
Interest income related parties – direct financing leases | 382 | 4,452 |
Service revenue related parties – direct financing leases | 1,746 | 3,258 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Operating lease income | 25,689 | 25,261 |
Profit sharing income – related parties | 1,510 | 1,244 |
Frontline Shipping | ||
Related Party Transaction [Line Items] | ||
Profit sharing income – related parties | 0 | 268 |
Interest income related parties – direct financing leases | 382 | 766 |
Service revenue related parties – direct financing leases | 1,746 | 3,258 |
Direct financing lease repayments | 1,752 | 3,176 |
Seadrill | ||
Related Party Transaction [Line Items] | ||
Operating lease income | 17,770 | 7,912 |
Interest income related parties – direct financing leases | 0 | 3,686 |
Direct financing lease repayments | $ 0 | $ 2,703 |
RELATED PARTY TRANSACTIONS (S_3
RELATED PARTY TRANSACTIONS (Schedule of fees with related parties) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | $ 12,826 | $ 14,740 |
Administrative expenses – related parties | 757 | 154 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | 10,135 | 10,136 |
Administrative expenses – related parties | 0 | 33 |
Operating Management Fees | 22 | 355 |
Seatankers | ||
Related Party Transaction [Line Items] | ||
Administrative expenses – related parties | 251 | 113 |
Credit note | (300) | |
Front Ocean | ||
Related Party Transaction [Line Items] | ||
Administrative expenses – related parties | 210 | 0 |
Seatankers Management Norway AS | ||
Related Party Transaction [Line Items] | ||
Office facilities | 62 | 54 |
Frontline Management AS | ||
Related Party Transaction [Line Items] | ||
Office facilities | 128 | 118 |
Frontline Corporate Services Ltd. | ||
Related Party Transaction [Line Items] | ||
Office facilities | 60 | 71 |
Flex LNG Management Ltd | ||
Related Party Transaction [Line Items] | ||
Office facilities | 3 | 0 |
Golden Ocean Shipping Co Pte. Ltd. | ||
Related Party Transaction [Line Items] | ||
Office facilities | 41 | 0 |
Frontline | ||
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | 2,669 | 4,249 |
Newbuilding Supervision Fees | 466 | 16 |
Commissions and Brokerage | 152 | 96 |
Administrative expenses – related parties | $ 2 | $ 59 |
RELATED PARTY TRANSACTIONS (S_4
RELATED PARTY TRANSACTIONS (Schedule of related party loans and interest – associated companies) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Interest income – related parties, long term loans to associated companies | $ 2,263 | $ 4,063 |
River Box | ||
Related Party Transaction [Line Items] | ||
Loans granted | 45,000 | |
Loans outstanding | 45,000 | |
Interest income – related parties, long term loans to associated companies | 2,300 | 2,300 |
SFL Hercules Ltd. (“SFL Hercules”) | ||
Related Party Transaction [Line Items] | ||
Interest income – related parties, long term loans to associated companies | $ 0 | $ 1,800 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |
Dec. 31, 2021 USD ($) tanker | Mar. 31, 2021 USD ($) vessel | Jun. 30, 2022 USD ($) tanker | |
Equity securities | |||
Related Party Transaction [Line Items] | |||
Proceeds from sale of equity securities | $ 0.8 | ||
Front Force and Front Energy | |||
Related Party Transaction [Line Items] | |||
Termination fee on termination of charters | $ 4.5 | ||
Front Force and Front Energy | |||
Related Party Transaction [Line Items] | |||
Proceeds from sale of vessels and termination of charters | $ 65.4 | ||
Entities related to frontline ltd | |||
Related Party Transaction [Line Items] | |||
Number of product tankers | tanker | 4 | ||
Product tankers, purchase price | $ 160 | ||
Number of product tankers, delivered | tanker | 2 | 2 | |
ADS Maritime Holding | |||
Related Party Transaction [Line Items] | |||
Proceeds from dividends received | $ 8.8 | ||
Number of vessels sold | vessel | 2 |
ALLOWANCE FOR EXPECTED CREDIT_3
ALLOWANCE FOR EXPECTED CREDIT LOSSES (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | $ 6,988 |
Net investment in lease, allowance for credit loss, beginning balance | 1,263 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | (3,200) |
Allowance recorded in net income of associated companies | (582) |
Allowance for credit loss, ending balance | 3,206 |
Net investment in lease, allowance for credit loss, ending balance | 226 |
Trade receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 96 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | 0 |
Allowance recorded in net income of associated companies | (4) |
Allowance for credit loss, ending balance | 92 |
Other receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 486 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | 0 |
Allowance recorded in net income of associated companies | 477 |
Allowance for credit loss, ending balance | 963 |
Related Party receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 3,255 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | (3,200) |
Allowance recorded in net income of associated companies | (10) |
Allowance for credit loss, ending balance | 45 |
Investment in sales-type, direct financing leases and leaseback assets | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Net investment in lease, allowance for credit loss, beginning balance | 1,263 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | 0 |
Allowance recorded in net income of associated companies | (1,037) |
Net investment in lease, allowance for credit loss, ending balance | 226 |
Other long-term assets | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 1,888 |
Accounts receivable, allowance for credit loss, derecognition of related party balance | 0 |
Allowance recorded in net income of associated companies | (8) |
Allowance for credit loss, ending balance | $ 1,880 |
ALLOWANCE FOR EXPECTED CREDIT_4
ALLOWANCE FOR EXPECTED CREDIT LOSSES (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Allowance for Expected Credit Losses [Line Items] | |
Accounts receivable, allowance for credit loss, derecognition of related party balance | $ 3,200 |
Related Party receivables | |
Allowance for Expected Credit Losses [Line Items] | |
Accounts receivable, allowance for credit loss, derecognition of related party balance | $ 3,200 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies [Line Items] | ||
Pledged assets, other, non separately reported on statement of financial position | $ 2,435 | $ 2,310 |
Book value of assets with finance lease liabilities | 636 | 656 |
Vessels and equipment, net | ||
Commitments and Contingencies [Line Items] | ||
Pledged assets, other, non separately reported on statement of financial position | 2,308 | 2,107 |
Vessels under finance lease, net | ||
Commitments and Contingencies [Line Items] | ||
Book value of assets with finance lease liabilities | 636 | 656 |
Property Subject To Sales-Type, Direct Financing Leases and Leaseback | ||
Commitments and Contingencies [Line Items] | ||
Pledged assets, other, non separately reported on statement of financial position | $ 127 | $ 203 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) shares in Millions | Jun. 30, 2022 USD ($) carrier vessel shares | Dec. 31, 2021 USD ($) vessel shares | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) |
Commitments and Contingencies [Line Items] | ||||
Finance Lease, Liability | $ 498,823,000 | $ 524,200,000 | ||
Restricted cash | $ 5,714,000 | $ 8,338,000 | $ 5,866,000 | |
Common stock - Frontline Ltd | ||||
Commitments and Contingencies [Line Items] | ||||
Investment owned, balance (in shares) | shares | 1.4 | 1.4 | ||
Principal debt amount | $ 15,600,000 | $ 15,600,000 | $ 36,800,000 | |
Debt for acquired equipment | ||||
Commitments and Contingencies [Line Items] | ||||
Long-term Line of Credit | 2,000,000,000 | 1,900,000,000 | ||
Frontline forward contract | ||||
Commitments and Contingencies [Line Items] | ||||
Investment owned, at fair value | 12,800,000 | 10,200,000 | ||
Installation of scrubbers | ||||
Commitments and Contingencies [Line Items] | ||||
Number of container vessels with amended charter terms | 0 | 0 | ||
Installation of BWTS | ||||
Commitments and Contingencies [Line Items] | ||||
Number of container vessels with amended charter terms | $ 2,500,000 | $ 2,700,000 | ||
Number of vessels being upgraded | vessel | 4 | 5 | ||
Newbuilding dual-fuel car carriers using liquefied natural gas | ||||
Commitments and Contingencies [Line Items] | ||||
Number of dual-fuel car carriers | carrier | 4 | |||
Dual-fuel car carriers | ||||
Commitments and Contingencies [Line Items] | ||||
Number of container vessels with amended charter terms | $ 239,700,000 | $ 254,200,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Aug. 31, 2022 USD ($) charter vessel | Aug. 17, 2022 $ / shares | May 12, 2022 $ / shares | Feb. 16, 2022 $ / shares | |
Subsequent Event [Line Items] | ||||
Dividends payable (in usd per share) | $ 0.22 | $ 0.20 | ||
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividends payable (in usd per share) | $ 0.23 | |||
Number of eco-design vessels | vessel | 4 | |||
Number of year charters | charter | 6 | |||
Vessel additions | $ | $ 222.5 |