Cover
Cover | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 |
Document Fiscal Year Focus | 2023 |
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, 2023 | Jun. 30, 2022 | |
Operating revenues | ||
Interest income related parties – direct financing leases | $ 0 | $ 382 |
Interest income other – sales-type, direct financing leases and leaseback assets | 3,809 | 4,394 |
Service revenue related parties – direct financing leases | 0 | 1,746 |
Profit sharing income – related parties | 0 | 1,510 |
Profit sharing income – other | 7,135 | 8,125 |
Time charter revenues – related parties | 27,195 | 25,689 |
Time charter revenues – other | 228,888 | 205,775 |
Bareboat charter revenues – related parties | 0 | 17,770 |
Bareboat charter revenues – other | 0 | 13,195 |
Voyage charter revenues | 28,753 | 24,371 |
Drilling contract revenues | 37,860 | 0 |
Other operating income | 4,187 | 2,729 |
Total operating revenues | 337,827 | 305,686 |
Gain on sale of assets and termination of charters, net | 16,476 | 13,228 |
Operating expenses | ||
Vessel operating expenses – related parties | 11,343 | 12,826 |
Vessel operating expenses – other | 82,202 | 70,525 |
Rig operating expenses -other | 40,972 | 0 |
Depreciation | 102,159 | 91,313 |
Vessel impairment charge | 7,389 | 0 |
Administrative expenses – related parties | 785 | 757 |
Administrative expenses – other | 7,662 | 7,859 |
Total operating expenses | 252,512 | 183,280 |
Net operating income | 101,791 | 135,634 |
Non-operating income/(expense) | ||
Interest income – related parties, long term loans to associated companies | 2,263 | 2,263 |
Interest income – related parties, other | 0 | 249 |
Interest income – other | 4,889 | 433 |
Interest expense | (82,554) | (50,104) |
Loss on repurchase of bonds | (540) | 0 |
(Loss)/gain on investments in debt and equity securities | (792) | 4,466 |
Dividend income - related parties | 802 | 0 |
Other financial items, net | (4,046) | 10,083 |
Net income before equity in earnings of associated companies | 21,813 | 103,024 |
Equity in earnings of associated companies | 1,451 | 1,405 |
Net income | $ 23,264 | $ 104,429 |
Per share information: | ||
Basic earnings per share (in USD per share) | $ 0.18 | $ 0.82 |
Diluted earnings per share (in USD per share) | $ 0.18 | $ 0.79 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 23,264 | $ 104,429 |
Fair value adjustments to hedging financial instruments | (3,147) | 13,677 |
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | 4,607 | 0 |
Fair value adjustments to investment securities classified as available-for-sale | 0 | 330 |
Other comprehensive loss | (48) | (120) |
Other comprehensive income, net of tax | 1,412 | 13,887 |
Comprehensive income | $ 24,676 | $ 118,316 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 201,466 | $ 188,362 |
Investments in debt and equity securities | 5,866 | 7,283 |
Investment in sales-type leases, direct financing leases and leaseback assets, current portion | 26,505 | 15,432 |
Trade accounts receivable | 34,326 | 20,003 |
Inventories | 15,272 | 16,395 |
Prepaid expenses and accrued income | 9,790 | 17,127 |
Financial instruments at fair value, current portion | 1,355 | 1,936 |
Total current assets | 321,045 | 296,982 |
Vessels, rigs and equipment, net | 2,589,834 | 2,646,389 |
Balance as of June 30, 2023 | 594,278 | 614,763 |
Investment in sales-type leases, direct financing leases and leaseback assets, long-term portion | 84,845 | 103,591 |
Investments in associated companies | 16,542 | 16,547 |
Capital improvements, newbuildings and vessel purchase deposits | 112,799 | 97,860 |
Loans and long term receivables from associated companies | 45,000 | 45,000 |
Financial instruments at fair value, long-term portion | 23,717 | 26,716 |
Other long-term assets | 18,076 | 13,482 |
Total assets | 3,806,136 | 3,861,330 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 347,845 | 921,270 |
Finance lease liability, current portion | 54,873 | 53,655 |
Trade accounts payable | 21,547 | 7,887 |
Financial instruments at fair value, current portion | 25,230 | 16,861 |
Accrued expenses | 100,066 | 27,198 |
Total current liabilities | 588,934 | 1,056,611 |
Long-term liabilities | ||
Long-term debt | 1,762,203 | 1,279,786 |
Finance lease liability, long-term portion | 391,553 | 419,341 |
Financial instruments at fair value, long-term portion | 12,416 | 14,357 |
Other long-term liabilities | 4 | 4 |
Total liabilities | 2,755,110 | 2,770,099 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Share capital ($0.01 par value; 300,000,000 shares authorized; 138,562,173 shares issued and 138,034,756 shares outstanding at June 30, 2023). ($0.01 par value; 300,000,000 shares authorized; 138,562,173 shares issued and outstanding at December 31, 2022). | 1,386 | 1,386 |
Additional paid-in capital | 617,370 | 616,554 |
Treasury stock | (4,835) | 0 |
Contributed surplus | 424,562 | 424,562 |
Accumulated other comprehensive income | 10,126 | 8,714 |
Accumulated profit | 2,417 | 40,015 |
Total stockholders’ equity | 1,051,026 | 1,091,231 |
Total liabilities and stockholders’ equity | 3,806,136 | 3,861,330 |
Related Party | ||
Current assets | ||
Other receivables | 3,589 | 4,392 |
Loans and long term receivables from associated companies | 45,000 | 45,000 |
Current liabilities | ||
Other current liabilities | 1,504 | 1,936 |
Nonrelated Party | ||
Current assets | ||
Other receivables | 22,876 | 26,052 |
Current liabilities | ||
Other current liabilities | $ 37,869 | $ 27,804 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 138,562,173 | 138,562,173 |
Common stock, shares outstanding (in shares) | 138,034,756 | 138,562,173 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Operating Activities | |||
Net cash provided by operating activities | $ 230,962 | $ 166,707 | |
Investing activities | |||
Purchase of vessels, capital improvements, newbuildings and deposits | (135,181) | (194,860) | |
Proceeds from sales of vessels and termination of charters | 104,211 | 83,333 | |
Net amounts received from associated companies | 1,456 | 1,453 | |
Proceeds from redemption of available-for-sale debt securities | 0 | 5,124 | |
Collateral deposits paid on swap agreements | (6,030) | (1,058) | |
Net cash used in investing activities | (35,544) | (106,008) | |
Financing activities | |||
Repayment of lease obligation liability | (26,569) | (25,377) | |
Proceeds from issuance of debt | 720,187 | 255,350 | |
Repayments of debt | (620,895) | (159,786) | |
Debt fees paid | (11,747) | (2,066) | |
Repurchase of bonds | (167,781) | 0 | |
Principal settlements of cross currency swaps, net | (9,812) | 0 | |
Cash paid for shares repurchase | (4,835) | 0 | |
Cash dividends paid | (60,862) | (53,250) | |
Net cash (used in)/provided by financing activities | (182,314) | 14,871 | |
Net change in cash, restricted cash and cash equivalents | 13,104 | 75,570 | |
Cash, restricted cash and cash equivalents at start of the period | 188,362 | 153,960 | $ 153,960 |
Cash, restricted cash and cash equivalents at end of the period | 201,466 | 229,530 | 188,362 |
Cash, restricted cash and cash equivalents: | |||
Cash and cash equivalents | 201,466 | 223,816 | 188,362 |
Restricted cash | 0 | 5,714 | |
Cash, restricted cash and cash equivalents at end of the period | $ 201,466 | $ 229,530 | $ 188,362 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect, period of adoption, adjustment | Share capital | Additional paid-in capital | Additional paid-in capital Cumulative effect, period of adoption, adjustment | Treasury stock | Contributed surplus | Accumulated other comprehensive income/(loss) | Accumulated profit/(deficit) | Accumulated profit/(deficit) Cumulative effect, period of adoption, adjustment |
Shares outstanding starting balance (in shares) at Dec. 31, 2021 | 138,551,387 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued (in shares) | 0 | |||||||||
Number of shares repurchased (in shares) | 0 | 0 | ||||||||
Shares outstanding ending balance (in shares) at Jun. 30, 2022 | 138,551,387 | |||||||||
Equity starting balance at Dec. 31, 2021 | $ (1,600) | $ 1,386 | $ 621,037 | $ (5,863) | $ 0 | $ 461,818 | $ (9,194) | $ (92,720) | $ 4,285 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of stock-based compensation | 739 | |||||||||
Treasury stock | 0 | |||||||||
Dividends declared | (37,256) | (15,994) | ||||||||
Fair value adjustments to hedging financial instruments | 13,677 | |||||||||
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | $ 0 | 0 | ||||||||
Fair value adjustments to available-for-sale securities | 330 | 330 | ||||||||
Other comprehensive loss | (120) | (120) | ||||||||
Net income | 104,429 | 104,429 | ||||||||
Equity ending balance at Jun. 30, 2022 | $ 1,046,554 | $ 1,386 | 615,913 | 0 | 424,562 | 4,693 | 0 | |||
Shares outstanding starting balance (in shares) at Dec. 31, 2021 | 138,551,387 | |||||||||
Shares outstanding ending balance (in shares) at Dec. 31, 2022 | 138,562,173 | 138,562,173 | ||||||||
Equity starting balance at Dec. 31, 2021 | $ (1,600) | $ 1,386 | 621,037 | $ (5,863) | 0 | 461,818 | (9,194) | (92,720) | $ 4,285 | |
Equity ending balance at Dec. 31, 2022 | $ 1,091,231 | $ 1,386 | 616,554 | 0 | 424,562 | 8,714 | 40,015 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued (in shares) | 0 | |||||||||
Number of shares repurchased (in shares) | (527,417) | (527,417) | ||||||||
Shares outstanding ending balance (in shares) at Jun. 30, 2023 | 138,034,756 | 138,034,756 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of stock-based compensation | 816 | |||||||||
Treasury stock | $ (4,800) | (4,835) | ||||||||
Dividends declared | 0 | (60,862) | ||||||||
Fair value adjustments to hedging financial instruments | (3,147) | |||||||||
Earnings reclassification of previously deferred fair value adjustments to hedging financial instruments | 4,607 | 4,607 | ||||||||
Fair value adjustments to available-for-sale securities | 0 | 0 | ||||||||
Other comprehensive loss | (48) | (48) | ||||||||
Net income | 23,264 | 23,264 | ||||||||
Equity ending balance at Jun. 30, 2023 | $ 1,051,026 | $ 1,386 | $ 617,370 | $ (4,835) | $ 424,562 | $ 10,126 | $ 2,417 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - Parenthetical - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Number of shares repurchased (in shares) | 527,417 | 0 |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2023 | |
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 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, 2022, which was filed with the SEC on March 16, 2023. The results of operations for the interim period ended June 30, 2023 are not necessarily indicative of the results for the entire year ending December 31, 2023. 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 the Company 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, 2022. Recently Issued Accounting Standards The following is a brief discussion of a selection of recently released accounting pronouncements that are considered pertinent to the Company's business and are not yet adopted. In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU amends certain provisions of ASC 842, Leases that apply to arrangements between related parties under common control thereby requiring leasehold improvements associated with common control leases to be amortized over the useful life to the common control group. The amendments are effective for the Company beginning after December 15, 2023, with early adoption permitted. As of period ended June 30, 2023, the Company does not expect the changes prescribed in ASU 2023-01 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. Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). 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 No. 2021-01 "Reference Rate Reform (Topic 848): Scope" ("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. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" ("ASU 2022-06"). The amendments in this ASU extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. During the six months ended June 30, 2023, some of the floating rate debt facilities and interest rate swaps contracts of the Company were amended to transition from LIBOR as a benchmark rate to Secured Overnight Financing Rate (“SOFR”). The Company has applied the practical expedients and exceptions provided by the ASUs above in order to preserve the presentation of derivatives consistent with past presentation and as of period ended June 30, 2023, the Company has not recorded any material impact on the Company's consolidated financial statements as a result of these amendments. 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 market volatility surrounding the impacts of the Russian-Ukrainian conflict and significant global inflationary pressures. However actual results could differ materially from those estimates. |
GAIN ON SALE OF ASSETS AND TERM
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS | GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS During the six months ended June 30, 2023, the two Suezmax tankers Glorycrown and Everbright , which were trading in the spot market, were sold to an unrelated third party. The Company received net sale proceeds of $84.9 million and recorded a gain of $16.4 million on the disposal. Also during the six months ended June 30, 2023, the two chemical tankers SFL Weser and SFL Elbe , which were trading in the spot market, were sold to an unrelated third party. The Company received net sale proceeds of $19.4 million and recorded a gain of $30.0 thousand on the disposal. The Company also recorded an impairment loss of $7.4 million prior to the disposal. (See Note 6: Vessels, Rigs and Equipment, Net). 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 an additional compensation payment of $4.5 million from Frontline Shipping Limited (“Frontline Shipping”), for the 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. (collectively “MSC”) following execution of the applicable purchase obligation in the charter contract. The Company received net sale proceeds including profit share of $13.5 million and recorded a gain of $11.7 million on the disposal. There were no other vessels or rigs sold during the six months ended June 30, 2023 and June 30, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Basic earnings per share: Net income available to stockholders 23,264 104,429 Diluted earnings per share: Net income available to stockholders 23,264 104,429 Interest and other expenses attributable to dilutive convertible notes — 3,747 Net income assuming dilution 23,264 108,176 The components of the denominator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands) June 30, 2023 June 30, 2022 Basic earnings per share: Weighted average number of common shares outstanding* 126,774 126,786 Diluted earnings per share: Weighted average number of common shares outstanding* 126,774 126,786 Effect of dilutive share options 242 38 Effect of dilutive convertible notes — 10,476 Weighted average number of common shares outstanding assuming dilution 127,016 137,300 Six months ended June 30, 2023 June 30, 2022 Basic earnings per share: $ 0.18 $ 0.82 Diluted earnings per share: $ 0.18 $ 0.79 *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 and 3,765,842 shares issued as a part of a share lending arrangement relating to the Company's issuance of 4.875% senior unsecured convertible notes in April and May 2018. The Company entered into a general share lending agreement with another counterparty and after the maturity of the bonds, 8,000,000 shares and 1,496,600 shares, respectively, from each issuance under the two initial share lending arrangements described above were transferred into such counterparty's custody. As of June 30, 2023, 2,268,542 of the shares issued under the initial share lending arrangement related to the issuance of the 4.875% senior unsecured convertible notes remained in the custody of the counterparty of that arrangement. The weighted average number of common shares outstanding also excludes 527,417 shares repurchased by the Company under its share repurchase program (defined below) during the six months ended June 30, 2023. (See also Note 14: Share Capital, Additional Paid-In Capital and Contributed Surplus). |
OTHER FINANCIAL ITEMS
OTHER FINANCIAL ITEMS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Net cash movement on non-designated derivatives and swap settlements 2,877 (1,692) Net (loss)/gain in fair value movements of non-designated derivatives (5,571) 12,718 Change in allowance for expected credit losses 402 582 Other items (1,754) (1,525) Total other financial items, net (4,046) 10,083 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, 2023 include a net loss of $1.7 million arising from foreign currency translations (in the six months ended June 30, 2022: loss of $1.3 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, 2023 | |
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, 2023 December 31, 2022 Equity Securities 5,866 7,283 Total Investment in Debt and Equity Securities 5,866 7,283 Corporate Bonds During the six months ended June 30, 2023, the Company held no investments in corporate bonds. During the year ended December 31, 2022, the Company received an aggregate amount of $4.7 million from the redemption of NorAm Drilling Company AS ("NorAm Drilling") bonds and recorded no gain or loss on redemption of the bonds. The accumulated gain of $0.5 million previously recognized in other comprehensive income was recognized in the Consolidated Statements of Operations. During the year ended December 31, 2022, the Company received an aggregate amount of $9.6 million from the redemption of NT Rig Holdco Liquidity 12% bonds and NT Rig Holdco 7.5% bonds, following the sale of five jack-up rigs by NT Rig Holdco. A realized gain of $4.7 million was recognized in the Consolidated Statements of Operations in relation to the redemption of the bonds. The corporate bonds were classified as available-for-sale securities and were recorded at fair value, with unrealized gains and losses recorded as a separate component of "Other comprehensive income". Equity Securities As of June 30, 2023, the equity securities comprise of approximately $1.3 million shares in NorAm Drilling which are traded in the Norwegian Over-the-Counter market ("OTC") and now traded on the Euronext Growth exchange in Oslo since October 2022. The Company recognized a mark to market loss of $0.8 million in the Statement of Operations in the six months ended June 30, 2023, together with a foreign exchange loss of $0.6 million in Other Financial Items in the Statement of Operations. In December 2019, the Company entered into a forward contract to repurchase 3.4 million shares of Frontline plc (formerly Frontline Ltd.) (“Frontline”), a related party, for $36.8 million in June 2020. In 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 renewed the forward contract continuously from 2019 until September 2022. During the year ended December 31, 2022, the Company had a forward contract to repurchase 1.4 million shares of Frontline, at a repurchase price of $16.7 million including accrued interest. The transaction was accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability recorded within debt. In September 2022, the Company settled the forward contract in full and recorded the sale of the 1.4 million shares and extinguishment of the corresponding debt of $15.6 million. A net gain of $4.6 million was recognized in the Statement of Operations in respect of the settlement |
VESSELS, RIGS AND EQUIPMENT, NE
VESSELS, RIGS AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
VESSELS, RIGS AND EQUIPMENT, NET | VESSELS, RIGS AND EQUIPMENT, NET Movements in the six months ended June 30, 2023 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels, Rigs and Equipment, net Balance as of December 31, 2022 3,345,233 (698,844) 2,646,389 Depreciation — (81,674) (81,674) Vessel disposals (126,547) 38,813 (87,734) Capital improvements 120,242 — 120,242 Impairment loss (40,714) 33,325 (7,389) Balance as of June 30, 2023 3,298,214 (708,380) 2,589,834 The capital improvements of $120.2 million relate to Special Periodic Survey (“SPS”) and other capital upgrades performed on the harsh environment semi-submersible drilling rig Hercules during the six months ended June 30, 2023. SPS costs of $69.8 million were capitalized as a separate component of the rig and are depreciated until the next SPS, which is in five years. In addition, capital upgrades of $47.6 million were also capitalized as a separate component of rig and are depreciated over a period of 10 years economic useful life. Also as of June 30, 2023, ballast water treatment system (“BWTS”) was installed on Hercules and the amount of $2.8 million was also capitalized. During the six months ended June 30, 2023, the Company sold and delivered two Suezmax tankers, Glorycrown and Everbright , to an unrelated third party and a net gain on disposal of $16.4 million was recognized in the Consolidated Statement of Operations. (See also Note 2: Gain on Sale of Assets and Termination of Charters). Also, during the six months ended June 30, 2023, the Company sold and delivered two chemical tankers, SFL Weser and SFL Elbe , to an unrelated third party. The Company recorded an impairment loss of $7.4 million prior to disposal and a gain on sale of $30.0 thousand was recognized in the Consolidated Statement of Operations. (See also Note 2: Gain on Sale of Assets and Termination of Charters). No impairment losses were recorded against the carrying value of "Vessels, Rigs and Equipment, net" in the six months ended June 30, 2023, other than the impairment losses on the two chemical tankers described above. No impairment losses were recorded in the six months ended June 30, 2022. |
CAPITAL IMPROVEMENTS, NEWBUILDI
CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS | CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS (in thousands of $) June 30, 2023 December 31, 2022 Capital improvements in progress 306 4,127 Newbuildings 112,493 93,733 112,799 97,860 Capital improvements in progress of $0.3 million comprise of advances paid and costs incurred in respect of upgrades in relation to the SPS on one rig (December 31, 2022: on two rigs). This is recorded in "Capital improvements, newbuildings and vessel purchase deposits" until such time as the equipment is installed on a vessel or rig, at which point it is transferred to "Vessels, rigs and equipment, net" or "Investment in sales-type leases and direct financing leases". The carrying value of newbuildings represents the accumulated costs which the Company has paid in purchase installments and other capital expenditures in relation to four (December 31, 2022: four) newbuilding contracts, together with capitalized loan interest. Interest capitalized in the cost of newbuildings amounted to $5.2 million in the six months ended June 30, 2023 (December 31, 2022: $2.7 million). As of June 30, 2023, the Company had paid total installments and related costs of $47.3 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 the second half of 2023 and will immediately commence a 10-year time charter to Volkswagen Group. As of June 30, 2023, the Company had paid total installments and related costs of $65.2 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 time charter to K Line. |
VESSELS UNDER FINANCE LEASE, NE
VESSELS UNDER FINANCE LEASE, NET | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
VESSELS UNDER FINANCE LEASE, NET | VESSELS UNDER FINANCE LEASE, NET Movements in the six months ended June 30, 2023 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels under Finance Lease, net Balance as of December 31, 2022 777,939 (163,176) 614,763 Depreciation — (20,485) (20,485) Balance as of June 30, 2023 777,939 (183,661) 594,278 As of June 30, 2023, 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. The seven vessels are leased back for an original term ranging from six |
INVESTMENTS IN SALES-TYPE LEASE
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
INVESTMENTS IN 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, 2023 and December 31, 2022: (in thousands of $) June 30, 2023 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 23,424 29,862 53,286 Purchase obligations at the end of the leases 43,150 31,500 74,650 Net minimum lease payments receivable 66,574 61,362 127,936 Less : unearned income (5,235) (11,258) (16,493) Total investment in sales-type lease, direct financing lease and leaseback assets 61,339 50,104 111,443 Allowance for expected credit losses* (80) (13) (93) Total investment in sales-type lease, direct financing lease and leaseback assets 61,259 50,091 111,350 Current portion 22,188 4,317 26,505 Long-term portion 39,071 45,774 84,845 (in thousands of $) December 31, 2022 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 30,708 34,160 64,868 Purchase obligations at the end of the leases 43,150 31,500 74,650 Net minimum lease payments receivable 73,858 65,660 139,518 Less: unearned income (7,252) (13,051) (20,303) Total investment in sales-type lease, direct financing lease and leaseback assets 66,606 52,609 119,215 Allowance for expected credit losses* (102) (90) (192) Total investment in sales-type lease, direct financing lease and leaseback assets 66,504 52,519 119,023 Current portion 10,794 4,638 15,432 Long-term portion 55,710 47,881 103,591 *See Note 18: Allowance for Expected Credit Losses. As of June 30, 2023, the Company had a total of nine vessel charters accounted for as sales-type and direct financing leases (December 31, 2022: nine vessels) and one vessel charter classified as a leaseback asset (December 31, 2022: one vessel). Investments in sales-type and direct financing leases As of June 30, 2023, the Company had nine (December 31, 2022: nine) 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. 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, 2023 | |
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 the Company is not the primary beneficiary. As of June 30, 2023, June 30, 2022 and December 31, 2022, the Company had the following participation in investments that were recorded using the equity method: June 30, 2023 June 30, 2022 December 31, 2022 River Box Holding Inc. (“River Box”) 49.90 % 49.90 % 49.90 % 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”), the Company's largest shareholder and a related party, and has accounted for the remaining 49.9% ownership in River Box using the equity method. Summarized balance sheet information of the Company’s equity method investees is as follows: River Box (in thousands of $) June 30, 2023 December 31, 2022 Share presented 49.90 % 49.90 % Current assets 15,742 15,186 Non-current assets 227,886 234,572 Total assets 243,628 249,758 Current liabilities 14,699 14,267 Non-current liabilities (1) 212,387 218,944 Total liabilities 227,086 233,211 Total stockholders’ equity (2) 16,542 16,547 (1) River Box non-current liabilities as of June 30, 2023 include $45.0 million due to SFL (December 31, 2022: $45.0 million) (See Note 17: Related Party Transactions). (2) In the six months ended June 30, 2023, River Box paid a dividend of $1.5 million to SFL (June 30, 2022: $1.5 million, December 31, 2022: $2.9 million). Summarized statement of operations information of the Company’s equity method investees is as follows: River Box Six months ended June 30, (in thousands of $) 2023 2022 Share presented 49.90 % 49.90 % Operating revenues 9,221 9,665 Net operating revenues 9,212 9,654 Net income 1,451 1,405 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. Movements in the six months ended June 30, 2023 in the allowance for expected credit losses can be summarized as follows: (in thousands of $) River Box Share presented 49.90 % Balance as of December 31, 2022 378 Allowance recorded in net income of associated companies (62) Balance as of June 30, 2023 316 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 collateral exposure. |
OTHER LONG TERM ASSETS
OTHER LONG TERM ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Collateral deposits on swap agreements 14,800 8,770 Value of acquired charter-out contracts, net 3,276 4,712 Total Other Long Term Assets 18,076 13,482 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, 2023, the amortization charged to time charter revenue was $1.4 million (six months ended June 30, 2022: $1.4 million). |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT (in thousands of $) June 30, 2023 December 31, 2022 Short-term and long-term debt: U.S. dollar denominated fixed rate debt due 2026 149,625 — NOK700 million senior unsecured floating rate bonds due 2023 37,933 71,243 NOK700 million senior unsecured floating rate bonds due 2024 64,775 70,734 NOK600 million senior unsecured floating rate bonds due 2025 54,989 60,048 4.875% senior unsecured convertible bonds due 2023 — 137,900 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 150,000 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 — Lease debt financing 455,548 394,555 U.S. dollar denominated floating rate debt due through 2029 1,067,829 1,329,156 Total debt principal 2,130,699 2,213,636 Less: Unamortized debt issuance costs (20,651) (12,580) Less: Current portion of long-term debt (347,845) (921,270) Total long-term debt 1,762,203 1,279,786 Movements in the period: (in thousands of $) Fixed Rate, Lease Debt Financing and NOK Bonds U.S. Dollar Floating Rate Debt Total debt principal Balance as of December 31, 2022 884,480 1,329,156 2,213,636 Drawdowns and capitalized interest 384,576 335,611 720,187 Repayments and redemptions (191,258) (596,938) (788,196) Effects of foreign exchange (14,928) — (14,928) Balance as of June 30, 2023 1,062,870 1,067,829 2,130,699 Interest rate information: June 30, 2023 December 31, 2022 Weighted average interest rate* 5.53 % 5.30 % US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate 5.55 % 4.77 % Secured Overnight Financing Rate ("SOFR"), closing rate 5.09 % 4.30 % Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate 4.37 % 3.26 % *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, Lease Debt Financing and NOK Bonds Redemptions between January 1, 2023 and June 30, 2023: Bond In Millions of USD NOK700 million senior unsecured floating rate bonds due 2023 29.4 4.875% senior unsecured convertible bonds due 2023 137.9 During the six months ended June 30, 2023, the Company recorded a net loss of $0.5 million on the repurchase of fixed rate and foreign debt recorded in "Loss on repurchase of bonds". No such losses were recorded during the six months ended June 30, 2022 . New facilities drawn down between January 1, 2023 and June 30, 2023: 8.875% senior unsecured sustainability-linked bonds due 2027 In February 2023, the Company issued a senior unsecured sustainability-linked bond totaling $150.0 million in the Nordic market. The bond was issued at a price of 99.58%. The difference between the face value and market value of the bond of $0.6 million will be amortized as an interest expense over the life of the bond. The bonds bear quarterly interest at a fixed rate of 8.875% per annum and are redeemable in full on February 1, 2027. The net amount outstanding as of June 30, 2023 was $150.0 million. U.S. dollar denominated fixed rate debt due 2026 In April 2023, a wholly owned subsidiary of the Company entered into a $150.0 million senior secured term loan facility, secured against a jack-up drilling rig. The Company has provided a limited corporate guarantee for this facility, which bears a fixed rate of interest and has a term of three years. The net amount outstanding as of June 30, 2023 was $149.6 million. Lease debt financing In April 2023, a wholly owned subsidiary of the Company owning a 4,900 CEU car carrier entered into a sale and leaseback transaction for this vessel, through a Japanese operating lease with call option financing structure. The sales price for the vessel was $45.0 million. The vessel was leased back for a term of approximately five years, with the Company's option to purchase the vessel at the end of the fifth year. The transaction did not qualify as a sale and has been recorded as a financing arrangement. The amount outstanding as of June 30, 2023, was $44.1 million. In May 2023, a wholly owned subsidiary of the Company owning a 2,500 TEU containership entered into a sale and leaseback transaction for this vessel, through a Japanese operating lease with call option financing structure. The sales price for the vessel was $38.5 million. The vessel was leased back for a term of approximately nine years, with the Company's option to purchase the vessel after approximately six U.S. Dollar Floating Rate Debt New facilities drawn down between January 1, 2023 and June 30, 2023: Name of facility Draw down Number of wholly owned subsidiaries entering into the facility Term Balance outstanding at period end $144.625 million term loan facility Feb. 2023 four 2 years, 11 months 142.1 $150 million senior secured term loan facility May 2023 one 2 years, 8 months 150.0 $23.25 million term loan facility* May 2023 one 1 year 13.9 $23.25 million term loan facility* May 2023 one 1 year 18.6 $8.44 million senior unsecured term loan facility May 2023 one 2 years, 8 months 8.4 *These facilities were partially drawn down as of June 30, 2023 . The Company has provided limited corporate guarantees for the above facilities, which bear interest at term SOFR or the compounded daily SOFR plus applicable margins. Facilities redeemed between January 1, 2023 and June 30, 2023: Name of facility Original draw down date Number of wholly owned subsidiaries that had entered into the facility Term Amount redeemed $375 million term loan and revolving credit facility Jun. 2013 one 10 years 146.7 $475 million term loan and revolving credit facility Feb. 2014 one 9 years 178.4 $33.1 million term loan facility Jun. 2019 five 4 years 21.9 $40.0 million senior secured term loan facility Mar. 2020 two 3 years 31.9 $290 million term loan facility Sep. 2022 six 6 months 156.0 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Designated derivative instruments - short-term assets: Interest rate swaps 1,219 1,229 Non-designated derivative instruments - short-term assets: Interest rate swaps 136 707 Total derivative instruments - short-term assets 1,355 1,936 Designated derivative instruments - long-term assets: Interest rate swaps 9,921 12,963 Non-designated derivative instruments - long-term assets: Interest rate swaps 13,796 13,753 Total derivative instruments - long-term assets 23,717 26,716 (in thousands of $) June 30, 2023 December 31, 2022 Designated derivative instruments - short-term liabilities: Cross currency interest rate swaps 9,457 2,260 Cross currency swaps 15,659 14,601 Non-designated derivative instruments - short-term liabilities: Cross currency swaps 114 — Total derivative instruments - short-term liabilities 25,230 16,861 Designated derivative instruments - long-term liabilities: Cross currency interest rate swaps — 4,054 Cross currency swaps 12,416 10,233 Non-designated derivative instruments - long-term liabilities: Cross currency swaps — 70 Total derivative instruments - long-term liabilities 12,416 14,357 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, 2023, 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, NIBOR or SOFR. The total net notional principal amount subject to interest rate swap agreements as of June 30, 2023, was $0.4 billion (December 31, 2022: $0.6 billion). Due to the discontinuance of LIBOR after June 30, 2023, and notwithstanding the automatic conversion mechanisms to alternative rates, the Company has entered into (or is in the process of entering into) amendment agreements to existing loan and swap agreements for the transition from LIBOR to SOFR. As of June 30, 2023, the Company does not anticipate any material impact on the Company's consolidated financial statements as a result of these amendments. 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 NOK400 million* US$48.1 million September 2018 September 2023 NOK700 million US$80.5 million May 2019 June 2024 NOK600 million US$67.5 million January 2020 January 2025 *Originally NOK700 million. NOK300 million was cancelled during the six months ended June 30, 2023. 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, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Equity securities 5,866 5,866 7,283 7,283 NOK700 million senior unsecured floating rate bonds due 2023 37,933 38,123 71,243 71,421 NOK700 million senior unsecured floating rate bonds due 2024 64,775 65,585 70,734 70,734 NOK600 million senior unsecured floating rate bonds due 2025 54,989 56,020 60,048 60,348 4.875% senior unsecured convertible bonds due 2023 — — 137,900 137,211 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 144,255 150,000 144,188 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 150,000 — — Derivatives: Interest rate/currency swap contracts - short-term receivables 1,355 1,355 1,936 1,936 Interest rate/currency swap contracts - long-term receivables 23,717 23,717 26,716 26,716 Interest rate/currency swap contracts - short-term payables 25,230 25,230 16,861 16,861 Interest rate/currency swap contracts - long-term payables 12,416 12,416 14,357 14,357 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, 2022, changes in the fair values of the 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, 2023, were measured as follows: Fair value measurements using (in thousands of $) June 30, 2023 Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Equity securities 5,866 5,866 Interest rate/ currency swap contracts, short-term receivables 1,355 1,355 Interest rate/ currency swap contracts, long-term receivables 23,717 23,717 Total assets 30,938 5,866 25,072 — Liabilities: NOK700 million senior unsecured floating rate bonds due 2023 38,123 38,123 NOK700 million senior unsecured floating rate bonds due 2024 65,585 65,585 NOK600 million senior unsecured floating rate bonds due 2025 56,020 56,020 7.25% senior unsecured sustainability-linked bonds due 2026 144,255 144,255 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 150,000 Interest rate/currency swap contracts, short-term payables 25,230 25,230 Interest rate/currency swap contracts, long-term payables 12,416 12,416 Total liabilities 491,629 453,983 37,646 — 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. As of June 30, 2023, investment in equity securities consist of NorAm Drilling shares traded on the Euronext Growth exchange in Oslo. The estimated fair values of the floating rate NOK denominated bonds due 2023, 2024 and 2025, the 7.25% senior unsecured sustainability-linked bonds due 2026 and the 8.875% senior unsecured sustainability-linked bonds due 2027 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, NIBOR or SOFR interest rates as of June 30, 2023. 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 could also be a concentration of revenue risk with the below customers to whom the Company earns the largest proportion of revenues from, or has chartered multiple vessels. Charterer Number of vessels/rigs chartered as of June 30, 2023 % of consolidated operating revenues (Six months ended June 30, 2023) Number of vessels/rigs chartered as of June 30, 2022 % of consolidated operating revenues (Six months ended June 30, 2022) Maersk A/S (“Maersk”) 16 31 % 15 31 % Evergreen Marine Corporation (Taiwan) Ltd. and its affiliate Evergreen Marine (Singapore) Pte Ltd. (collectively “Evergreen”) 6 15 % 6 17 % Conocophillips Skandinavia AS ("Conocophillips")** 1 11 % N/A N/A Trafigura Maritime Logistics Pte Ltd (“Trafigura”) 7 9 % 7 9 % Golden Ocean Group Limited (“Golden Ocean”)* 8 8 % 8 9 % MSC 9 1 % 9 1 % * Additionally see Note 17: Related Party Transactions. ** In September 2022, the drilling rig Linus was redelivered from Seadrill to the Company. Concurrently, the drilling contract of Linus with ConocoPhillips was assigned from Seadrill to the Company. In addition, a portion of our net income is generated from our associated company, River Box. (See Note 10: Investment in Associated Companies). I n the six months ended June 30, 2023 , income from River Box accounted for approximately 16% of our net income (six months ended June 30, 2022: 4% of our net income). |
SHARE CAPITAL, ADDITIONAL PAID-
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 300,000,000 common shares of $0.01 par value each (December 31, 2022: 300,000,000 common 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, 2023 December 31, 2022 138,562,173 common shares of $0.01 par value each (December 31, 2022: 138,562,173 common 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. Following the adoption, the 4.875% senior unsecured convertible notes due 2023 were 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, the Company 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, the Company may grant additional share sales to investors from time to time up to the amount registered under the plan. On April 15, 2022, the Company filed a new registration statement to register the sale of up to 10,000,000 common shares pursuant to the DRIP. In May 2020, the Company entered into an equity distribution agreement with BTIG LLC ("BTIG") under which the Company may, 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 offering program (the “2020 ATM Program”). In April 2022, the Company entered into an amended and restated equity distribution agreement with BTIG under which the Company may, from time to time, offer and sell new common shares up to $100.0 million through an at-the-market offering program (the “2022 ATM Program”). Under this agreement, the prior 2020 ATM Program was terminated and replaced with the renewed 2022 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, at the Company’s discretion. On April 28, 2023, in connection with the 2022 ATM Program, the Company filed a new registration statement on Form F-3ASR and an accompanying prospectus supplement with the SEC to register the offer and sale of up to $100.0 million common shares pursuant to the 2022 ATM Program. During the six months ended June 30, 2023, the Company declared a dividend of $0.24 per share on February 15, 2023 to shareholders of record as of March 15, 2023, with an ex-dividend date of March 14, 2023. The Company also declared a dividend of $0.24 per share on May 15, 2023 to shareholders of record as of June 16, 2023, with an ex-dividend date of June 15, 2023. No new shares were issued and sold under the DRIP and ATM arrangements during the six months ended June 30, 2023 or during the year ended December 31, 2022. On May 8, 2023, the board of directors of the Company (the “Board of Directors”) authorized the repurchase of up to an aggregate of $100 million of the Company’s common shares until June 30, 2024 ("share repurchase program"). During the six months ended June 30, 2023, the Company repurchased a total of 527,417 shares, at an average price of approximately $9.15 per share, with principal amounts totaling $4.8 million. During the year ended December 31, 2022, 85,500 share options were exercised with a total intrinsic value of $0.1 million on the day of exercise. The Company issued a total of 10,786 new shares in full satisfaction of this intrinsic value, with no cash exchanges. The weighted average exercise price of the options exercised was $8.87 per share. During the six months ended June 30, 2023, no share options were exercised. As described above, in November 2016, in relation with the Company's issuance of the 5.75% senior unsecured convertible bonds totaling $225 million in October 2016, the Company entered a share lending arrangement and issued 8,000,000 common shares, par value $0.01 per share, thereunder. The shares were issued at par value and had been loaned to an affiliate of one of the underwriters of the bond issue, in order to assist investors in the bonds to hedge their position. The bonds were convertible into the Company's common shares and matured on October 15, 2021. In December 2021, the Company entered into a general share lending agreement with another counterparty and the 8,000,000 shares were transferred into its custody. It was determined that the transaction qualified for equity classification, and as of the date of inception and as of June 30, 2023, the fair value was determined to be nil (year ended December 31, 2022: nil). In May 2018, in relation with the Company's issuance of 4.875% senior unsecured convertible bonds totaling $164 million in April and May 2018, the Company entered a share lending arrangement and issued 3,765,842 common shares, par value $0.01 per share, from up to 7,000,000 issuable under a share lending arrangement. The shares were issued at par value and had been loaned to an affiliate of one of the underwriters of the bond issue, in order to assist investors in the bonds to hedge their position. The bonds were convertible into the Company's common shares and matured on May 1, 2023. Also in May 2023, the Company transferred 1,496,600 of the 3,765,842 shares into the custody of another counterparty under a general share lending agreement. It was determined that the transaction qualified for equity classification, and as of the date of inception and as of June 30, 2023, the fair value was determined to be nil (year ended December 31, 2022: nil). As of June 30, 2023, 2,268,542 of the shares issued under the initial share lending arrangement related to the issuance of the 4.875% senior unsecured convertible notes remained in the custody of the counterparty to that arrangement. During the six months ended June 30, 2023, $0.0 million of the dividend declared was paid from contributed surplus (year ended December 31, 2022: $37.3 million). |
SHARE OPTION PLAN
SHARE OPTION PLAN | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE OPTION PLAN | SHARE OPTION PLAN In November 2006, the Board of Directors approved a share option scheme (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, 2023, additional paid-in capital was credited with $0.8 million relating to the fair value of options granted in February 2020, May 2021, February 2022 and February 2023. During the six months ended June 30, 2023, 68,000 share options expired. At the date of expiry the options had a weighted average exercise price of $9.47 per share and an intrinsic value of $0.0 million. In February 2023, the Company awarded a total of 440,000 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 2024 onwards. The initial strike price was $10.34 per share. Total unrecognized compensation cost relating to the outstanding options under the Option Scheme was $1.9 million as of June 30, 2023 (December 31, 2022: $1.0 million). |
FINANCE LEASE LIABILITY
FINANCE LEASE LIABILITY | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
FINANCE LEASE LIABILITY | FINANCE LEASE LIABILITY As of June 30, 2023, the Company chartered-in seven container vessels under sale and leaseback transactions with an Asia-based financial institution (December 31, 2022: 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, 2023 December 31, 2022 Finance lease liability, current portion 54,873 53,655 Finance lease liability, long-term portion 391,553 419,341 446,426 472,996 Interest incurred on the finance lease liability in the six months ended June 30, 2023 was $10.8 million (six months ended June 30, 2022: $12.0 million). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
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 – Golden Ocean – Seatankers Management Norway AS and Seatankers Management Co. Ltd. (collectively “Seatankers”) – Front Ocean Management AS and Front Ocean Management Ltd. (collectively “Front Ocean”) – NorAm Drilling – River Box – Sloane Square Capital Holdings Ltd. (“Sloane Square Capital”) 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, 2023 December 31, 2022 Amounts due from: Frontline 3,298 3,854 Seatankers 88 — Golden Ocean — 374 Sloane Square Capital 195 183 NorAm Drilling 19 — River Box** 10 10 Other related parties 4 1 Allowance for expected credit losses* (25) (30) Total amount due from related parties 3,589 4,392 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 1,192 1,788 Frontline — 2 Golden Ocean 173 141 Seatankers 95 — Front Ocean 39 — Other related parties 5 5 Total amount due to related parties 1,504 1,936 * 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). 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, 2023 June 30, 2022 Golden Ocean: Operating lease income 27,195 25,689 Profit share — 1,510 Frontline Shipping: Direct financing lease interest income — 382 Direct financing lease service revenue — 1,746 Direct financing lease repayments — 1,752 Seadrill* Operating lease income — 17,770 * 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, 2023 June 30, 2022 Frontline: Vessel Management Fees 1,207 2,669 Newbuilding Supervision Fees 709 466 Commissions and Brokerage 280 152 Administration Services Fees 2 2 Golden Ocean: Vessel Management Fees 10,136 10,135 Operating Management Fees — 22 Commissions and Brokerage 81 — Seatankers: Administration Services Fees 143 251 Front Ocean: Administration Services Fees 311 210 Office Facilities: Seatankers Management Norway AS 35 62 Frontline Management AS 156 128 Frontline Corporate Services Ltd. 95 60 Flex LNG Management Ltd — 3 Golden Ocean Shipping Co Pte. Ltd. 43 41 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, 2023 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, 2023 June 30, 2022 River Box 2.3 2.3 Other related party transactions The Company owned two VLCCs accounted for as direct financing leases, which were leased to Frontline Shipping. During the six months ended June 30, 2022, the vessels were sold and delivered to an unrelated third party and a gain of $1.5 million was recognized on the sale of the two vessels. The Company also received an additional compensation payment of $4.5 million from Frontline Shipping, for early termination of the charters. (See also Note 2: Gain on Sale of Assets and Termination of Charters). The Company also had a forward contract to repurchase 1.4 million shares of Frontline at a repurchase price of $16.7 million including accrued interest. The transaction had been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability recorded within debt. In September 2022, the Company settled the forward contract in full and recorded the sale of the 1.4 million shares and the full extinguishment of the corresponding debt of $15.6 million. A net gain of $4.6 million was recognized in the Statement of Operations in respect of the settlement during the year ended December 31, 2022. During the six months ended June 30, 2023, the Company received dividend income of $0.8 million from NorAm Drilling (six months ended June 30, 2022: $0.0 million). 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, 2023 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR EXPECTED CREDIT LOSSES | ALLOWANCE FOR EXPECTED CREDIT LOSSESThe 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 impact of the Russian-Ukrainian conflict and significant global inflationary pressures on credit losses. The effect of these are 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, 2023. (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, 2022 260 904 30 192 1,880 3,266 Change in allowance recorded in 'other financial items' (235) (63) (5) (99) — (402) Balance as of June 30, 2023 25 841 25 93 1,880 2,864 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Assets Pledged (in millions of $) June 30, 2023 December 31, 2022 Vessels, rigs and equipment, net 2,532 2,460 Investments in sales-type, direct financing leases and leaseback assets 111 119 Book value of consolidated assets pledged under ship mortgages 2,643 2,579 Assets with finance lease liabilities (in millions of $) June 30, 2023 December 31, 2022 Vessels under finance lease, net 594 615 Total book value 594 615 The Company has funded its acquisition of vessels, jack-up rig and harsh environment semi-submersible 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, 2023, the Company had $2.1 billion of outstanding principal indebtedness under various credit facilities ( December 31, 2022 : $2.2 billion) and finance lease liabilities totaling $0.4 billion ( December 31, 2022 : $0.5 billion ) . 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. The Company also has similar partially mutual insurance arrangements for its rigs. As of June 30, 2023, the Company had signed a contract with a subsidiary of ExxonMobil Canada Ltd. (“ExxonMobil”) for the harsh environment semi-submersible rig Hercules . The rig commenced mobilization to Canada in the second half of June and commenced drilling operations mid-July. As of June 30, 2023, the Company had signed a contract with a subsidiary of Galp Energia, S.A (“Galp Energia”) for the harsh environment semi-submersible rig Hercules . The contract is for two wells plus optional well testing and is expected to commence in the fourth quarter of 2023. Without any options, the duration is approximately 115 days including mobilization to Namibia. Capital commitments As of June 30, 2023, the Company had committed to paying approximately $57.0 million towards the installation of efficiency upgrades, including scrubbers, on six vessels owned or chartered-in by the Company, with installations expected to take place up to the end of 2024 (December 31, 2022: $35.3 million on six vessels). The majority of the cost is refundable by the charterer of the vessels. As of June 30, 2023, the Company had commitments under shipbuilding contracts to construct four newbuilding dual-fuel 7,000 CEU car carriers, totaling to $194.2 million (December 31, 2022: $209.7 million). Delivery of the vessels is expected to take place in the second half of 2023 and in 2024. (Refer to Note 7: Capital Improvements, Newbuildings and Vessel Purchase Deposits, for amounts already paid). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 17, 2023, the Board of Directors declared a dividend of $0.24 per share which is payable in cash on or around September 29, 2023 to shareholders of record on September 14, 2023. In August 2023, the Company signed a contract with Equinor Canada Ltd. for the harsh environment semi-submersible rig Hercules . The contract is for one well plus one optional well and is expected to commence in the second quarter of 2024. The contract has a duration of approximately 200 days including transit time to and from Canada. O dfjell Drilling will manage the rig on behalf of the Company under the contract. The rig is expected to start mobilizing towards Canada immediately after completing the Galp Energia contract in Namibia. In August 2023, the Company sold and delivered the VLCC, Landbridge Wisdom, to Landbridge following exercise of the applicable purchase option in the charter contract. Sales proceeds totaling $52.0 million were received from Landbridge in connection with the transaction. Subsequent to quarter end, the Company acquired a further aggregate amount of 566,378 shares at a total cash outlay of $5.3 million under the share repurchase program. |
INTERIM FINANCIAL DATA (Policie
INTERIM FINANCIAL DATA (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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 the Company 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, 2022. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The following is a brief discussion of a selection of recently released accounting pronouncements that are considered pertinent to the Company's business and are not yet adopted. In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU amends certain provisions of ASC 842, Leases that apply to arrangements between related parties under common control thereby requiring leasehold improvements associated with common control leases to be amortized over the useful life to the common control group. The amendments are effective for the Company beginning after December 15, 2023, with early adoption permitted. As of period ended June 30, 2023, the Company does not expect the changes prescribed in ASU 2023-01 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. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). 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 No. 2021-01 "Reference Rate Reform (Topic 848): Scope" ("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. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" ("ASU 2022-06"). The amendments in this ASU extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. During the six months ended June 30, 2023, some of the floating rate debt facilities and interest rate swaps contracts of the Company were amended to transition from LIBOR as a benchmark rate to Secured Overnight Financing Rate (“SOFR”). The Company has applied the practical expedients and exceptions provided by the ASUs above in order to preserve the presentation of derivatives consistent with past presentation and as of period ended June 30, 2023, the Company has not recorded any material impact on the Company's consolidated financial statements as a result of these amendments. |
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 market volatility surrounding the impacts of the Russian-Ukrainian conflict and significant global inflationary pressures. However actual results could differ materially from those estimates. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Basic earnings per share: Net income available to stockholders 23,264 104,429 Diluted earnings per share: Net income available to stockholders 23,264 104,429 Interest and other expenses attributable to dilutive convertible notes — 3,747 Net income assuming dilution 23,264 108,176 The components of the denominator for the calculation of basic and diluted EPS are as follows: Six months ended (in thousands) June 30, 2023 June 30, 2022 Basic earnings per share: Weighted average number of common shares outstanding* 126,774 126,786 Diluted earnings per share: Weighted average number of common shares outstanding* 126,774 126,786 Effect of dilutive share options 242 38 Effect of dilutive convertible notes — 10,476 Weighted average number of common shares outstanding assuming dilution 127,016 137,300 Six months ended June 30, 2023 June 30, 2022 Basic earnings per share: $ 0.18 $ 0.82 Diluted earnings per share: $ 0.18 $ 0.79 *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 and 3,765,842 shares issued as a part of a share lending arrangement relating to the Company's issuance of 4.875% senior unsecured convertible notes in April and May 2018. The Company entered into a general share lending agreement with another counterparty and after the maturity of the bonds, 8,000,000 shares and 1,496,600 shares, respectively, from each issuance under the two initial share lending arrangements described above were transferred into such counterparty's custody. As of June 30, 2023, 2,268,542 of the shares issued under the initial share lending arrangement related to the issuance of the 4.875% senior unsecured convertible notes remained in the custody of the counterparty of that arrangement. The weighted average number of common shares outstanding also excludes 527,417 shares repurchased by the Company under its share repurchase program (defined below) during the six months ended June 30, 2023. (See also Note 14: Share Capital, Additional Paid-In Capital and Contributed Surplus). |
OTHER FINANCIAL ITEMS (Tables)
OTHER FINANCIAL ITEMS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 June 30, 2022 Net cash movement on non-designated derivatives and swap settlements 2,877 (1,692) Net (loss)/gain in fair value movements of non-designated derivatives (5,571) 12,718 Change in allowance for expected credit losses 402 582 Other items (1,754) (1,525) Total other financial items, net (4,046) 10,083 |
INVESTMENTS IN DEBT AND EQUIT_2
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Equity Securities 5,866 7,283 Total Investment in Debt and Equity Securities 5,866 7,283 |
VESSELS, RIGS, AND EQUIPMENT, N
VESSELS, RIGS, AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of movements of vessels and equipment | Movements in the six months ended June 30, 2023 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels, Rigs and Equipment, net Balance as of December 31, 2022 3,345,233 (698,844) 2,646,389 Depreciation — (81,674) (81,674) Vessel disposals (126,547) 38,813 (87,734) Capital improvements 120,242 — 120,242 Impairment loss (40,714) 33,325 (7,389) Balance as of June 30, 2023 3,298,214 (708,380) 2,589,834 |
CAPITAL IMPROVEMENTS, NEWBUIL_2
CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Capital Improvements, Newbuildings and Vessel Purchase Deposits | (in thousands of $) June 30, 2023 December 31, 2022 Capital improvements in progress 306 4,127 Newbuildings 112,493 93,733 112,799 97,860 |
VESSELS UNDER FINANCE LEASE, _2
VESSELS UNDER FINANCE LEASE, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of finance lease | Movements in the six months ended June 30, 2023 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Vessels under Finance Lease, net Balance as of December 31, 2022 777,939 (163,176) 614,763 Depreciation — (20,485) (20,485) Balance as of June 30, 2023 777,939 (183,661) 594,278 |
INVESTMENTS IN SALES-TYPE LEA_2
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Net Investment in Direct Financing and Sales Type Leases [Abstract] | |
Schedule of components of 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, 2023 and December 31, 2022: (in thousands of $) June 30, 2023 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 23,424 29,862 53,286 Purchase obligations at the end of the leases 43,150 31,500 74,650 Net minimum lease payments receivable 66,574 61,362 127,936 Less : unearned income (5,235) (11,258) (16,493) Total investment in sales-type lease, direct financing lease and leaseback assets 61,339 50,104 111,443 Allowance for expected credit losses* (80) (13) (93) Total investment in sales-type lease, direct financing lease and leaseback assets 61,259 50,091 111,350 Current portion 22,188 4,317 26,505 Long-term portion 39,071 45,774 84,845 (in thousands of $) December 31, 2022 Sales-Type Leases and Direct Financing Leases Leaseback Assets Total Total minimum lease payments to be received 30,708 34,160 64,868 Purchase obligations at the end of the leases 43,150 31,500 74,650 Net minimum lease payments receivable 73,858 65,660 139,518 Less: unearned income (7,252) (13,051) (20,303) Total investment in sales-type lease, direct financing lease and leaseback assets 66,606 52,609 119,215 Allowance for expected credit losses* (102) (90) (192) Total investment in sales-type lease, direct financing lease and leaseback assets 66,504 52,519 119,023 Current portion 10,794 4,638 15,432 Long-term portion 55,710 47,881 103,591 *See Note 18: Allowance for Expected Credit Losses. |
INVESTMENTS IN ASSOCIATED COM_2
INVESTMENTS IN ASSOCIATED COMPANIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Schedule of percentage participation using the equity method of accounting | As of June 30, 2023, June 30, 2022 and December 31, 2022, the Company had the following participation in investments that were recorded using the equity method: June 30, 2023 June 30, 2022 December 31, 2022 River Box Holding Inc. (“River Box”) 49.90 % 49.90 % 49.90 % |
Schedule of summarized financial statement information of equity method investees | Summarized balance sheet information of the Company’s equity method investees is as follows: River Box (in thousands of $) June 30, 2023 December 31, 2022 Share presented 49.90 % 49.90 % Current assets 15,742 15,186 Non-current assets 227,886 234,572 Total assets 243,628 249,758 Current liabilities 14,699 14,267 Non-current liabilities (1) 212,387 218,944 Total liabilities 227,086 233,211 Total stockholders’ equity (2) 16,542 16,547 (1) River Box non-current liabilities as of June 30, 2023 include $45.0 million due to SFL (December 31, 2022: $45.0 million) (See Note 17: Related Party Transactions). (2) In the six months ended June 30, 2023, River Box paid a dividend of $1.5 million to SFL (June 30, 2022: $1.5 million, December 31, 2022: $2.9 million). Summarized statement of operations information of the Company’s equity method investees is as follows: River Box Six months ended June 30, (in thousands of $) 2023 2022 Share presented 49.90 % 49.90 % Operating revenues 9,221 9,665 Net operating revenues 9,212 9,654 Net income 1,451 1,405 |
Schedule of allowance for expected credit losses in associates | Movements in the six months ended June 30, 2023 in the allowance for expected credit losses can be summarized as follows: (in thousands of $) River Box Share presented 49.90 % Balance as of December 31, 2022 378 Allowance recorded in net income of associated companies (62) Balance as of June 30, 2023 316 |
OTHER LONG TERM ASSETS (Tables)
OTHER LONG TERM ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Collateral deposits on swap agreements 14,800 8,770 Value of acquired charter-out contracts, net 3,276 4,712 Total Other Long Term Assets 18,076 13,482 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Schedule of short-term and long-term debt | (in thousands of $) June 30, 2023 December 31, 2022 Short-term and long-term debt: U.S. dollar denominated fixed rate debt due 2026 149,625 — NOK700 million senior unsecured floating rate bonds due 2023 37,933 71,243 NOK700 million senior unsecured floating rate bonds due 2024 64,775 70,734 NOK600 million senior unsecured floating rate bonds due 2025 54,989 60,048 4.875% senior unsecured convertible bonds due 2023 — 137,900 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 150,000 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 — Lease debt financing 455,548 394,555 U.S. dollar denominated floating rate debt due through 2029 1,067,829 1,329,156 Total debt principal 2,130,699 2,213,636 Less: Unamortized debt issuance costs (20,651) (12,580) Less: Current portion of long-term debt (347,845) (921,270) Total long-term debt 1,762,203 1,279,786 Movements in the period: (in thousands of $) Fixed Rate, Lease Debt Financing and NOK Bonds U.S. Dollar Floating Rate Debt Total debt principal Balance as of December 31, 2022 884,480 1,329,156 2,213,636 Drawdowns and capitalized interest 384,576 335,611 720,187 Repayments and redemptions (191,258) (596,938) (788,196) Effects of foreign exchange (14,928) — (14,928) Balance as of June 30, 2023 1,062,870 1,067,829 2,130,699 |
Schedule of interest rate information | June 30, 2023 December 31, 2022 Weighted average interest rate* 5.53 % 5.30 % US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate 5.55 % 4.77 % Secured Overnight Financing Rate ("SOFR"), closing rate 5.09 % 4.30 % Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate 4.37 % 3.26 % *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 Fixed Rate, Lease Debt Financing and NOK Bonds Redemptions | Redemptions between January 1, 2023 and June 30, 2023: Bond In Millions of USD NOK700 million senior unsecured floating rate bonds due 2023 29.4 4.875% senior unsecured convertible bonds due 2023 137.9 |
Schedule of U.S .Dollar Floating Rate Debt Drawn Downs and Redemptions | New facilities drawn down between January 1, 2023 and June 30, 2023: Name of facility Draw down Number of wholly owned subsidiaries entering into the facility Term Balance outstanding at period end $144.625 million term loan facility Feb. 2023 four 2 years, 11 months 142.1 $150 million senior secured term loan facility May 2023 one 2 years, 8 months 150.0 $23.25 million term loan facility* May 2023 one 1 year 13.9 $23.25 million term loan facility* May 2023 one 1 year 18.6 $8.44 million senior unsecured term loan facility May 2023 one 2 years, 8 months 8.4 *These facilities were partially drawn down as of June 30, 2023 . The Company has provided limited corporate guarantees for the above facilities, which bear interest at term SOFR or the compounded daily SOFR plus applicable margins. Facilities redeemed between January 1, 2023 and June 30, 2023: Name of facility Original draw down date Number of wholly owned subsidiaries that had entered into the facility Term Amount redeemed $375 million term loan and revolving credit facility Jun. 2013 one 10 years 146.7 $475 million term loan and revolving credit facility Feb. 2014 one 9 years 178.4 $33.1 million term loan facility Jun. 2019 five 4 years 21.9 $40.0 million senior secured term loan facility Mar. 2020 two 3 years 31.9 $290 million term loan facility Sep. 2022 six 6 months 156.0 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Designated derivative instruments - short-term assets: Interest rate swaps 1,219 1,229 Non-designated derivative instruments - short-term assets: Interest rate swaps 136 707 Total derivative instruments - short-term assets 1,355 1,936 Designated derivative instruments - long-term assets: Interest rate swaps 9,921 12,963 Non-designated derivative instruments - long-term assets: Interest rate swaps 13,796 13,753 Total derivative instruments - long-term assets 23,717 26,716 (in thousands of $) June 30, 2023 December 31, 2022 Designated derivative instruments - short-term liabilities: Cross currency interest rate swaps 9,457 2,260 Cross currency swaps 15,659 14,601 Non-designated derivative instruments - short-term liabilities: Cross currency swaps 114 — Total derivative instruments - short-term liabilities 25,230 16,861 Designated derivative instruments - long-term liabilities: Cross currency interest rate swaps — 4,054 Cross currency swaps 12,416 10,233 Non-designated derivative instruments - long-term liabilities: Cross currency swaps — 70 Total derivative instruments - long-term liabilities 12,416 14,357 |
Schedule of currency swap transactions | Principal Receivable Principal Payable Trade date Maturity date NOK400 million* US$48.1 million September 2018 September 2023 NOK700 million US$80.5 million May 2019 June 2024 NOK600 million US$67.5 million January 2020 January 2025 *Originally NOK700 million. NOK300 million was cancelled during the six months ended June 30, 2023. |
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, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 (in thousands of $) Carrying value Fair value Carrying value Fair value Non-derivatives: Equity securities 5,866 5,866 7,283 7,283 NOK700 million senior unsecured floating rate bonds due 2023 37,933 38,123 71,243 71,421 NOK700 million senior unsecured floating rate bonds due 2024 64,775 65,585 70,734 70,734 NOK600 million senior unsecured floating rate bonds due 2025 54,989 56,020 60,048 60,348 4.875% senior unsecured convertible bonds due 2023 — — 137,900 137,211 7.25% senior unsecured sustainability-linked bonds due 2026 150,000 144,255 150,000 144,188 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 150,000 — — Derivatives: Interest rate/currency swap contracts - short-term receivables 1,355 1,355 1,936 1,936 Interest rate/currency swap contracts - long-term receivables 23,717 23,717 26,716 26,716 Interest rate/currency swap contracts - short-term payables 25,230 25,230 16,861 16,861 Interest rate/currency swap contracts - long-term payables 12,416 12,416 14,357 14,357 |
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, 2023, were measured as follows: Fair value measurements using (in thousands of $) June 30, 2023 Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Equity securities 5,866 5,866 Interest rate/ currency swap contracts, short-term receivables 1,355 1,355 Interest rate/ currency swap contracts, long-term receivables 23,717 23,717 Total assets 30,938 5,866 25,072 — Liabilities: NOK700 million senior unsecured floating rate bonds due 2023 38,123 38,123 NOK700 million senior unsecured floating rate bonds due 2024 65,585 65,585 NOK600 million senior unsecured floating rate bonds due 2025 56,020 56,020 7.25% senior unsecured sustainability-linked bonds due 2026 144,255 144,255 8.875% senior unsecured sustainability-linked bonds due 2027 150,000 150,000 Interest rate/currency swap contracts, short-term payables 25,230 25,230 Interest rate/currency swap contracts, long-term payables 12,416 12,416 Total liabilities 491,629 453,983 37,646 — |
Schedule of concentration of revenue risk | There could also be a concentration of revenue risk with the below customers to whom the Company earns the largest proportion of revenues from, or has chartered multiple vessels. Charterer Number of vessels/rigs chartered as of June 30, 2023 % of consolidated operating revenues (Six months ended June 30, 2023) Number of vessels/rigs chartered as of June 30, 2022 % of consolidated operating revenues (Six months ended June 30, 2022) Maersk A/S (“Maersk”) 16 31 % 15 31 % Evergreen Marine Corporation (Taiwan) Ltd. and its affiliate Evergreen Marine (Singapore) Pte Ltd. (collectively “Evergreen”) 6 15 % 6 17 % Conocophillips Skandinavia AS ("Conocophillips")** 1 11 % N/A N/A Trafigura Maritime Logistics Pte Ltd (“Trafigura”) 7 9 % 7 9 % Golden Ocean Group Limited (“Golden Ocean”)* 8 8 % 8 9 % MSC 9 1 % 9 1 % * Additionally see Note 17: Related Party Transactions. ** In September 2022, the drilling rig Linus was redelivered from Seadrill to the Company. Concurrently, the drilling contract of Linus with ConocoPhillips was assigned from Seadrill to the Company. |
SHARE CAPITAL, ADDITIONAL PAI_2
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Capital | Authorized share capital is as follows: (in thousands of $, except share data) June 30, 2023 December 31, 2022 300,000,000 common shares of $0.01 par value each (December 31, 2022: 300,000,000 common 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, 2023 December 31, 2022 138,562,173 common shares of $0.01 par value each (December 31, 2022: 138,562,173 common shares of $0.01 par value each) 1,386 1,386 |
FINANCE LEASE LIABILITY (Tables
FINANCE LEASE LIABILITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of finance lease liabilities | (in thousands of $) June 30, 2023 December 31, 2022 Finance lease liability, current portion 54,873 53,655 Finance lease liability, long-term portion 391,553 419,341 446,426 472,996 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Amounts due from: Frontline 3,298 3,854 Seatankers 88 — Golden Ocean — 374 Sloane Square Capital 195 183 NorAm Drilling 19 — River Box** 10 10 Other related parties 4 1 Allowance for expected credit losses* (25) (30) Total amount due from related parties 3,589 4,392 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 1,192 1,788 Frontline — 2 Golden Ocean 173 141 Seatankers 95 — Front Ocean 39 — Other related parties 5 5 Total amount due to related parties 1,504 1,936 * 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). |
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, 2023 June 30, 2022 Golden Ocean: Operating lease income 27,195 25,689 Profit share — 1,510 Frontline Shipping: Direct financing lease interest income — 382 Direct financing lease service revenue — 1,746 Direct financing lease repayments — 1,752 Seadrill* Operating lease income — 17,770 |
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, 2023 June 30, 2022 Frontline: Vessel Management Fees 1,207 2,669 Newbuilding Supervision Fees 709 466 Commissions and Brokerage 280 152 Administration Services Fees 2 2 Golden Ocean: Vessel Management Fees 10,136 10,135 Operating Management Fees — 22 Commissions and Brokerage 81 — Seatankers: Administration Services Fees 143 251 Front Ocean: Administration Services Fees 311 210 Office Facilities: Seatankers Management Norway AS 35 62 Frontline Management AS 156 128 Frontline Corporate Services Ltd. 95 60 Flex LNG Management Ltd — 3 Golden Ocean Shipping Co Pte. Ltd. 43 41 |
Schedule of related party loans and interest – 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, 2023 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, 2023 June 30, 2022 River Box 2.3 2.3 |
ALLOWANCE FOR EXPECTED CREDIT_2
ALLOWANCE FOR EXPECTED CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023. (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, 2022 260 904 30 192 1,880 3,266 Change in allowance recorded in 'other financial items' (235) (63) (5) (99) — (402) Balance as of June 30, 2023 25 841 25 93 1,880 2,864 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of assets pledged | Assets Pledged (in millions of $) June 30, 2023 December 31, 2022 Vessels, rigs and equipment, net 2,532 2,460 Investments in sales-type, direct financing leases and leaseback assets 111 119 Book value of consolidated assets pledged under ship mortgages 2,643 2,579 |
Schedule of assets with finance lease liabilities | Assets with finance lease liabilities (in millions of $) June 30, 2023 December 31, 2022 Vessels under finance lease, net 594 615 Total book value 594 615 |
INTERIM FINANCIAL DATA (Details
INTERIM FINANCIAL DATA (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Effect of recently adopted accounting standard [Line Items] | ||||
Stockholders' equity attributable to parent | $ (1,051,026) | $ (1,091,231) | $ (1,046,554) | |
4.875% senior unsecured convertible bonds 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 | $ (2,417) | (40,015) | 0 | $ 92,720 |
Additional paid-in capital | ||||
Effect of recently adopted accounting standard [Line Items] | ||||
Stockholders' equity attributable to parent | $ (617,370) | $ (616,554) | $ (615,913) | (621,037) |
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) | |||
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 |
GAIN ON SALE OF ASSETS AND TE_2
GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) tanker | Jun. 30, 2022 USD ($) vessel | |
Other Income And Expenses | ||
Lessor, finance lease, number of lease assets sold | vessel | 2 | |
Glorycrown and Everbright | ||
Other Income And Expenses | ||
Number of tankers sold | tanker | 2 | |
Proceeds from sale of vessels and termination of charters | $ 84,900 | |
Gain (loss) on disposition of property plant equipment | $ 16,400 | |
SFL Weser and SFL Elbe | ||
Other Income And Expenses | ||
Number of tankers sold | tanker | 2 | |
Proceeds from sale of vessels and termination of charters | $ 19,400 | |
Gain (loss) on disposition of property plant equipment | $ 30 | |
Front Force and Front Energy | ||
Other Income And Expenses | ||
Proceeds from sale of vessels and termination of charters | $ 65,400 | |
Gain (loss) on sale of loans and leases | 1,500 | |
MSC Alice | ||
Other Income And Expenses | ||
Proceeds from sale of vessels and termination of charters | 13,500 | |
Gain (loss) on sale of loans and leases | 11,700 | |
Front Force and Front Energy | ||
Other Income And Expenses | ||
Termination fee on termination of charters | $ 4,500 |
EARNINGS PER SHARE (Components
EARNINGS PER SHARE (Components of EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
May 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | May 31, 2018 | Oct. 31, 2016 | |
Basic earnings per share: | |||||
Net income available to stockholders | $ 23,264 | $ 104,429 | |||
Diluted earnings per share: | |||||
Interest and other expenses attributable to dilutive convertible notes | 0 | 3,747 | |||
Net income assuming dilution | $ 23,264 | $ 108,176 | |||
Basic earnings per share: | |||||
Weighted average number of common shares outstanding (in shares) | 126,774,000 | 126,786,000 | |||
Diluted earnings per share: | |||||
Effect of dilutive share options (in shares) | 242,000 | 38,000 | |||
Effect of dilutive convertible notes (in shares) | 0 | 10,476,000 | |||
Weighted average number of common shares outstanding assuming dilution (in shares) | 127,016,000 | 137,300,000 | |||
Basic earnings per share (in USD per share) | $ 0.18 | $ 0.82 | |||
Diluted earnings per share (in USD per share) | $ 0.18 | $ 0.79 | |||
Number of shares repurchased (in shares) | 527,417 | 0 | |||
5.75% senior unsecured convertible notes 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% | ||||
Principal debt amount | $ 225,000 | ||||
5.75% senior unsecured convertible notes due 2021 | Own-Share Lending Arrangement, New Counterparty | |||||
Diluted earnings per share: | |||||
Own-share lending arrangement, shares, issued (in shares) | 8,000,000 | ||||
4.875% senior unsecured convertible bonds 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% | 4.875% | |||
Repayment of debt | $ 84,900 | ||||
Principal debt amount | $ 53,000 | $ 164,000 | |||
4.875% senior unsecured convertible bonds due 2023 | Own-Share Lending Arrangement, New Counterparty | |||||
Diluted earnings per share: | |||||
Own-share lending arrangement, shares, issued (in shares) | 1,496,600 | 1,496,600 | |||
4.875% senior unsecured convertible bonds due 2023 | Own-Share Lending Arrangement, Original Counterparties | |||||
Diluted earnings per share: | |||||
Own-share lending arrangement, shares, issued (in shares) | 2,268,542 |
OTHER FINANCIAL ITEMS (Summary
OTHER FINANCIAL ITEMS (Summary of Other Financial Items) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Other Financial Items [Abstract] | ||
Net cash movement on non-designated derivatives and swap settlements | $ 2,877 | $ (1,692) |
Net (loss)/gain in fair value movements of non-designated derivatives | (5,571) | 12,718 |
Change in allowance for expected credit losses | 402 | 582 |
Other items | (1,754) | (1,525) |
Total other financial items, net | $ (4,046) | $ 10,083 |
OTHER FINANCIAL ITEMS (Narrativ
OTHER FINANCIAL ITEMS (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Other Financial Items [Abstract] | ||
Loss on foreign currency translation | $ (1.7) | $ (1.3) |
INVESTMENTS IN DEBT AND EQUIT_3
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Summary of debt and equity securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities | $ 5,866 | $ 7,283 |
Investments in debt and equity securities | $ 5,866 | $ 7,283 |
INVESTMENTS IN DEBT AND EQUIT_4
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) shares | Dec. 31, 2019 shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) rig shares | Dec. 31, 2020 USD ($) shares | Jun. 30, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from redemption of available-for-sale debt securities | $ 0 | $ 5,124 | ||||||
Number of jack-up rigs sold | rig | 5 | |||||||
Corporate Bond Securities NorAm Drilling | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from redemption of available-for-sale debt securities | $ 4,700 | |||||||
Realized gain (loss) | 500 | |||||||
Corporate Bond Securities NT Rig Holdco Liquidity 12% Bonds and NT Rig Holdco 7.5% Bonds | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from redemption of available-for-sale debt securities | 9,600 | |||||||
Realized gain (loss) | $ 4,700 | |||||||
Corporate Bond Securities NT Rig Holdco 12% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 12% | |||||||
Corporate Bond Securities NT Rig Holdco 7.5% | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt instrument, redemption price (in percentage) | 7.50% | |||||||
NorAm Drilling | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Investment owned, balance (in shares) | shares | 1.3 | 1.3 | ||||||
Equity securities, unrealized gain | $ (800) | |||||||
Foreign exchange loss | $ (600) | |||||||
Common stock - Frontline Ltd | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Number of shares repurchased in forward contract (in shares) | shares | 3.4 | 1.4 | ||||||
Principal debt amount | $ 15,600 | $ 36,800 | ||||||
Sale of equity securities, number of shares | shares | 2 | |||||||
Proceeds from sale and maturity of equity securities | $ 21,100 | |||||||
Debt and equity securities, realized gain | $ 4,600 | $ 2,300 | ||||||
Repurchase price, including accrued interest | $ 16,700 | |||||||
Shares sold in forward contract (in shares) | shares | 1.4 |
INVESTMENTS IN DEBT AND EQUIT_5
INVESTMENTS IN DEBT AND EQUITY SECURITIES (Equity instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Equity securities | $ 5,866 | $ 7,283 |
VESSELS, RIGS AND EQUIPMENT, _2
VESSELS, RIGS AND EQUIPMENT, NET (Summary of Vessels and Equipment, Net) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ (102,159,000) | $ (91,313,000) | |
Impairment loss | 0 | $ 0 | |
Cost | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss | (40,714,000) | ||
Cost | Vessels, Rigs And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost, beginning balance | 3,298,214,000 | $ 3,345,233,000 | |
Vessel disposals | (126,547,000) | ||
Capital improvements | 120,242,000 | ||
Cost, ending balance | 3,298,214,000 | 3,345,233,000 | |
Accumulated Depreciation | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss | (33,325,000) | ||
Accumulated Depreciation | Vessels, Rigs And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation, beginning balance | (708,380,000) | (698,844,000) | |
Depreciation | (81,674,000) | ||
Vessel disposals | (38,813,000) | ||
Accumulated depreciation, ending balance | (708,380,000) | (698,844,000) | |
Vessels, Rigs and Equipment, net | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss | (7,389,000) | ||
Vessels, Rigs and Equipment, net | Vessels, Rigs And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, Net beginning balance | 2,589,834,000 | 2,646,389,000 | |
Depreciation | (81,674,000) | ||
Vessel disposals | (87,734,000) | ||
Capital improvements | 120,242,000 | ||
Vessels and equipment, Net ending balance | $ 2,589,834,000 | $ 2,646,389,000 |
VESSELS, RIGS AND EQUIPMENT, _3
VESSELS, RIGS AND EQUIPMENT, NET (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2023 USD ($) tanker | Jun. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Impairment loss | $ 0 | $ 0 |
Vessels, Rigs And Equipment | Suezmax tanker | ||
Property, Plant and Equipment [Line Items] | ||
Number of tankers sold | tanker | 2 | |
Gain (loss) on disposition of property plant equipment | $ 16,400,000 | |
Vessels, Rigs And Equipment | Chemical Tankers | ||
Property, Plant and Equipment [Line Items] | ||
Number of tankers sold | tanker | 2 | |
Gain (loss) on disposition of property plant equipment | $ 30,000 | |
Impairment loss | 7,400,000 | |
Vessels, Rigs And Equipment, Special Periodic Survey | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | $ 69,800,000 | |
Useful life (in years) | 5 years | |
Vessels, Rigs And Equipment, Capital Upgrades | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | $ 47,600,000 | |
Useful life (in years) | 10 years | |
Vessels, Rigs And Equipment, Ballast Water Treatment System | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | $ 2,800,000 | |
Cost | ||
Property, Plant and Equipment [Line Items] | ||
Impairment loss | 40,714,000 | |
Cost | Vessels, Rigs And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capital improvements | $ 120,242,000 |
CAPITAL IMPROVEMENTS, NEWBUIL_3
CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Capital improvements in progress | $ 306 | $ 4,127 |
Newbuildings | 112,493 | 93,733 |
Capital improvements, newbuildings and vessel purchase deposits | $ 112,799 | $ 97,860 |
CAPITAL IMPROVEMENTS, NEWBUIL_4
CAPITAL IMPROVEMENTS, NEWBUILDINGS AND VESSEL PURCHASE DEPOSITS - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) contract carrier rig | Dec. 31, 2022 USD ($) rig contract | |
Property, Plant and Equipment [Line Items] | ||
Capital improvements in progress | $ 306 | $ 4,127 |
Additions to newbuildings and vessel purchase deposits | $ 0 | |
Newbuilding vessels | ||
Property, Plant and Equipment [Line Items] | ||
Number of newbuilding contracts | contract | 4 | 4 |
Interest costs capitalized | $ 5,200 | $ 2,700 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Number of vessels being upgraded | rig | 1 | 2 |
Dual-fuel car carriers (Volkswagen) | ||
Property, Plant and Equipment [Line Items] | ||
Number of dual-fuel car carriers | carrier | 2 | |
2 dual-fuel car carriers (K Line) | ||
Property, Plant and Equipment [Line Items] | ||
Number of dual-fuel car carriers | carrier | 2 | |
Volkswagen Group | ||
Property, Plant and Equipment [Line Items] | ||
Term of lease or charter (in years) | 10 years | |
Volkswagen Group | Dual-fuel car carriers (Volkswagen) | ||
Property, Plant and Equipment [Line Items] | ||
Total installments paid | $ 47,300 | |
K Line | ||
Property, Plant and Equipment [Line Items] | ||
Term of lease or charter (in years) | 10 years | |
K Line | 2 dual-fuel car carriers (K Line) | ||
Property, Plant and Equipment [Line Items] | ||
Total installments paid | $ 65,200 |
VESSELS UNDER FINANCE LEASE, _3
VESSELS UNDER FINANCE LEASE, NET (Summary) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Cost | |
Beginning balance | $ 777,939 |
Ending balance | 777,939 |
Accumulated Depreciation | |
Beginning balance | (163,176) |
Depreciation | (20,485) |
Ending balance | (183,661) |
Vessels under Finance Lease, net | |
Beginning balance | 614,763 |
Depreciation | (20,485) |
Ending balance | $ 594,278 |
VESSELS UNDER FINANCE LEASE, _4
VESSELS UNDER FINANCE LEASE, NET (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 vessel | |
Property, Plant and Equipment [Line Items] | |
Number of container vessels accounted for as right of use assets | 7 |
Year option to purchase vessel (in years) | 6 years |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Term of lease or charter (in years) | 6 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Term of lease or charter (in years) | 11 years |
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, 2023 | Dec. 31, 2022 |
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | $ 53,286 | $ 64,868 |
Purchase obligations at the end of the leases | 74,650 | 74,650 |
Net minimum lease payments receivable | 127,936 | 139,518 |
Less: unearned income | (16,493) | (20,303) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 111,443 | 119,215 |
Allowance for expected credit losses | (93) | (192) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 111,350 | 119,023 |
Current portion | 26,505 | 15,432 |
Long-term portion | 84,845 | 103,591 |
Sales-Type Leases and Direct Financing Leases | ||
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | 23,424 | 30,708 |
Purchase obligations at the end of the leases | 43,150 | 43,150 |
Net minimum lease payments receivable | 66,574 | 73,858 |
Less: unearned income | (5,235) | (7,252) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 61,339 | 66,606 |
Allowance for expected credit losses | (80) | (102) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 61,259 | 66,504 |
Current portion | 22,188 | 10,794 |
Long-term portion | 39,071 | 55,710 |
Leaseback Assets | ||
Sale Leaseback Transaction [Line Items] | ||
Total minimum lease payments to be received | 29,862 | 34,160 |
Purchase obligations at the end of the leases | 31,500 | 31,500 |
Net minimum lease payments receivable | 61,362 | 65,660 |
Less: unearned income | (11,258) | (13,051) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 50,104 | 52,609 |
Allowance for expected credit losses | (13) | (90) |
Total investment in sales-type lease, direct financing lease and leaseback assets | 50,091 | 52,519 |
Current portion | 4,317 | 4,638 |
Long-term portion | $ 45,774 | $ 47,881 |
INVESTMENTS IN SALES-TYPE LEA_4
INVESTMENTS IN SALES-TYPE LEASES, DIRECT FINANCING LEASES AND LEASEBACK ASSETS (Narrative) (Details) - vessel | 1 Months Ended | ||
May 31, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Landbridge Universal Limited | |||
Sale Leaseback Transaction [Line Items] | |||
Term of lease or charter (in years) | 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 | 9 | |
Assets accounted for as sales-type lease | 9 | 9 | |
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, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | 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% |
INVESTMENTS IN ASSOCIATED COM_4
INVESTMENTS IN ASSOCIATED COMPANIES (Balance sheet information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | $ 321,045 | $ 296,982 | |
Total assets | 3,806,136 | 3,861,330 | |
Current liabilities | 588,934 | 1,056,611 | |
Total liabilities | 2,755,110 | 2,770,099 | |
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | |
Related Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Total current assets | 15,742 | 15,186 | |
Non-current assets | 227,886 | 234,572 | |
Total assets | 243,628 | 249,758 | |
Current liabilities | 14,699 | 14,267 | |
Non-current liabilities (1) | 212,387 | 218,944 | |
Total liabilities | 227,086 | 233,211 | |
Total stockholders’ equity (2) | $ 16,542 | $ 16,547 | |
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% |
Loans to related parties - associated companies, long-term | $ 45,000 | ||
River Box Holding Inc. ("River Box") | Related Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Loans to related parties - associated companies, long-term | $ 45,000 | $ 45,000 |
INVESTMENTS IN ASSOCIATED COM_5
INVESTMENTS IN ASSOCIATED COMPANIES (Income statement information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | $ 337,827 | $ 305,686 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | 9,221 | 9,665 | |
Net operating revenues | 9,212 | 9,654 | |
Net income | $ 1,451 | $ 1,405 | |
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 (Movements) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Allowance for credit loss, beginning balance | $ 3,266 | ||
Allowance recorded in net income of associated companies | (402) | ||
Allowance for credit loss, ending balance | 2,864 | $ 3,266 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Allowance for credit loss, beginning balance | 378 | ||
Allowance recorded in net income of associated companies | (62) | ||
Allowance for credit loss, ending balance | $ 316 | $ 378 | |
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_7
INVESTMENTS IN ASSOCIATED COMPANIES (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
River Box Holding Inc. ("River Box") | |||
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from dividends received | $ 1.5 | $ 1.5 | $ 2.9 |
OTHER LONG TERM ASSETS (Schedul
OTHER LONG TERM ASSETS (Schedule of Long-Term Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Collateral deposits on swap agreements | $ 14,800 | $ 8,770 |
Value of acquired charter-out contracts, net | 3,276 | 4,712 |
Other long-term assets | $ 18,076 | $ 13,482 |
OTHER LONG TERM ASSETS (Narrati
OTHER LONG TERM ASSETS (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) vessel | Jun. 30, 2022 USD ($) | Dec. 31, 2018 USD ($) vessel | |
Property, Plant and Equipment [Line Items] | |||
Number of container vessels accounted for as right of use assets | vessel | 7 | ||
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 | ||
Amortization | $ | $ (1.4) | $ (1.4) |
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, 2023 USD ($) | Jun. 30, 2023 NOK (kr) | Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||||
Total debt principal | $ 2,130,699 | $ 2,213,636 | |||
Less: Unamortized debt issuance costs | (20,651) | (12,580) | |||
Less: Current portion of long-term debt | (347,845) | (921,270) | |||
Total long-term debt | 1,762,203 | 1,279,786 | |||
U.S. dollar denominated fixed rate debt due 2026 | |||||
Debt Instrument [Line Items] | |||||
Principal debt amount | $ 150,000 | ||||
Long-term debt, gross | 149,625 | 0 | |||
NOK700 million senior unsecured floating rate bonds due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal debt amount | kr | kr 700 | ||||
Long-term debt, gross | 37,933 | 71,243 | |||
NOK700 million senior unsecured floating rate bonds due 2024 | |||||
Debt Instrument [Line Items] | |||||
Principal debt amount | kr | 700 | ||||
Long-term debt, gross | 64,775 | 70,734 | |||
NOK600 million senior unsecured floating rate bonds due 2025 | |||||
Debt Instrument [Line Items] | |||||
Principal debt amount | kr | kr 600 | ||||
Long-term debt, gross | 54,989 | 60,048 | |||
4.875% senior unsecured convertible bonds due 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 0 | 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] | |||||
Long-term debt, gross | $ 150,000 | 150,000 | |||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | 7.25% | |||
8.875% senior unsecured sustainability-linked bonds due 2027 | |||||
Debt Instrument [Line Items] | |||||
Principal debt amount | $ 150,000 | ||||
Long-term debt, gross | $ 150,000 | 0 | |||
Senior unsecured convertible notes interest rate (in percentage) | 8.875% | 8.875% | |||
Lease debt financing | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 455,548 | 394,555 | |||
U.S. Dollar Floating Rate Debt | |||||
Debt Instrument [Line Items] | |||||
U.S. Dollar Floating Rate Debt | $ 1,067,829 | $ 1,329,156 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT (Movement) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||
Total debt principal, beginning period | $ 2,213,636 | |
Drawdowns and capitalized interest | 720,187 | $ 255,350 |
Repayments and redemptions | (788,196) | |
Effects of foreign exchange | (14,928) | |
Total debt principal, ending period | 2,130,699 | |
Fixed Rate, Lease Debt Financing and NOK Bonds | ||
Debt Instrument [Line Items] | ||
Long term debt, beginning of the period | 884,480 | |
Drawdowns and capitalized interest | 384,576 | |
Repayments and redemptions | (191,258) | |
Effects of foreign exchange | (14,928) | |
Long term debt, end of period | 1,062,870 | |
U.S. Dollar Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Long term debt with floating interest rate, beginning of period | 1,329,156 | |
Drawdowns and capitalized interest | 335,611 | |
Repayments and redemptions | (596,938) | |
Effects of foreign exchange | 0 | |
Long term debt with floating interest rate, end of period | $ 1,067,829 |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBT (Interest rate information) (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 5.53% | 5.30% |
US Dollar London Interbank Offered Rate ("LIBOR"), 3-Month, closing rate | 5.55% | 4.77% |
Secured Overnight Financing Rate ("SOFR"), closing rate | 5.09% | 4.30% |
Norwegian Interbank Offered Rate ("NIBOR"), 3-Month, closing rate | 4.37% | 3.26% |
SHORT-TERM AND LONG-TERM DEBT_5
SHORT-TERM AND LONG-TERM DEBT (New Facilities, Renewals, and Redemptions) (Details) - 6 months ended Jun. 30, 2023 $ in Thousands, kr in Millions | USD ($) | NOK (kr) |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 788,196 | |
NOK700 million senior unsecured floating rate bonds due 2023 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | 29,400 | |
Principal debt amount | kr | kr 700 | |
4.875% senior unsecured convertible bonds due 2023 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 137,900 | |
Senior unsecured convertible notes interest rate (in percentage) | 4.875% |
SHORT-TERM AND LONG-TERM DEBT_6
SHORT-TERM AND LONG-TERM DEBT (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||||
May 31, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 28, 2023 | Sep. 30, 2022 | Jun. 30, 2020 | |
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Term of lease or charter (in years) | 6 years | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Term of lease or charter (in years) | 11 years | ||||||
Common stock - Frontline Ltd | |||||||
Debt Instrument [Line Items] | |||||||
Principal debt amount | $ 15.6 | $ 36.8 | |||||
Fixed Rate, Lease Debt Financing and NOK Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Loss on repurchase of debt | $ 0.5 | $ 0 | |||||
8.875% senior unsecured sustainability-linked bonds due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Senior unsecured convertible notes interest rate (in percentage) | 8.875% | ||||||
Principal debt amount | $ 150 | ||||||
Bond issue price, percentage | 99.58% | ||||||
Unamortized discount value | $ 0.6 | ||||||
Long-term debt | $ 150 | ||||||
U.S. dollar denominated fixed rate debt due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal debt amount | $ 150 | ||||||
Long term debt, term | 3 years | ||||||
Long-term debt | 149.6 | ||||||
Lease debt financing | 4,900 CEU Car Carrier | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 44.1 | ||||||
Sales price for the vessel | $ 45 | ||||||
Term of lease or charter (in years) | 5 years | ||||||
Lease debt financing | 2,500 TEU Containership | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 38.5 | ||||||
Sales price for the vessel | $ 38.5 | ||||||
Term of lease or charter (in years) | 9 years | ||||||
Lease debt financing | 2,500 TEU Containership | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Term of lease or charter, purchase obligation period | 6 years | ||||||
Lease debt financing | 2,500 TEU Containership | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Term of lease or charter, purchase obligation period | 7 years |
SHORT-TERM AND LONG-TERM DEBT_7
SHORT-TERM AND LONG-TERM DEBT (US floating rate) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) subsidiary | |
Debt Instrument [Line Items] | |
Repayments of debt | $ 788,196 |
US Dollar 144.625 Million Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 144,625 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 4 |
Term | 2 years 11 months |
Long-term debt | $ 142,100 |
US Dollar 150 Million Senior Secured Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 150,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 2 years 8 months |
Long-term debt | $ 150,000 |
US Dollar 23.25 Million Term Loan Facility One | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 23,250 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 1 year |
Long-term debt | $ 13,900 |
US Dollar 23.25 Million Term Loan Facility Two | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 23,250 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 1 year |
Long-term debt | $ 18,600 |
US Dollar 8.44 Million Senior Unsecured Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 8,440 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 2 years 8 months |
Long-term debt | $ 8,400 |
US Dollar 375 Million Term Loan and Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 375,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 10 years |
Repayments of debt | $ 146,700 |
US Dollar 475 Million Term Loan and Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 475,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 1 |
Term | 9 years |
Repayments of debt | $ 178,400 |
US Dollar 33.1 Million Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 33,100 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 5 |
Term | 4 years |
Repayments of debt | $ 21,900 |
US Dollar 40.0 Million Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 40,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 2 |
Term | 3 years |
Repayments of debt | $ 31,900 |
US Dollar 290.0 Million Term Loan Facility | |
Debt Instrument [Line Items] | |
Principal debt amount | $ 290,000 |
Number of wholly owned subsidiaries entering into the facility | subsidiary | 6 |
Term | 6 months |
Repayments of debt | $ 156,000 |
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, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total derivative instruments - short-term assets | $ 1,355 | $ 1,936 |
Total derivative instruments - long-term assets | 23,717 | 26,716 |
Financial instruments at fair value, current portion | 25,230 | 16,861 |
Financial instruments at fair value, long-term portion | 12,416 | 14,357 |
Interest rate swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Total derivative instruments - short-term assets | 1,219 | 1,229 |
Total derivative instruments - long-term assets | 9,921 | 12,963 |
Interest rate swaps | Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Total derivative instruments - short-term assets | 136 | 707 |
Total derivative instruments - long-term assets | 13,796 | 13,753 |
Cross currency swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Financial instruments at fair value, current portion | 15,659 | 14,601 |
Financial instruments at fair value, long-term portion | 12,416 | 10,233 |
Cross currency swaps | Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Financial instruments at fair value, current portion | 114 | 0 |
Financial instruments at fair value, long-term portion | 0 | 70 |
Cross currency interest rate swaps | Designated as hedging instrument | ||
Derivative [Line Items] | ||
Financial instruments at fair value, current portion | 9,457 | 2,260 |
Financial instruments at fair value, long-term portion | $ 0 | $ 4,054 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Thousands, shares in Millions, kr in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2020 USD ($) | Jun. 30, 2023 NOK (kr) | Sep. 30, 2022 USD ($) | Jun. 30, 2020 USD ($) | May 31, 2018 USD ($) | |
Derivative [Line Items] | |||||||||
Proceeds from redemption of available-for-sale debt securities | $ 0 | $ 5,124 | |||||||
Equity securities | 5,866 | $ 7,283 | |||||||
Common stock - Frontline Ltd | |||||||||
Derivative [Line Items] | |||||||||
Principal debt amount | $ 15,600 | $ 36,800 | |||||||
Number of shares repurchased in forward contract (in shares) | shares | 3.4 | 1.4 | |||||||
Debt and equity securities, realized gain | $ 4,600 | $ 2,300 | |||||||
Corporate Bond Securities NT Rig Holdco 7.5% | |||||||||
Derivative [Line Items] | |||||||||
Debt instrument, redemption price (in percentage) | 7.50% | ||||||||
Corporate Bond Securities NT Rig Holdco 12% | |||||||||
Derivative [Line Items] | |||||||||
Debt instrument, redemption price (in percentage) | 12% | ||||||||
River Box Holding Inc. ("River Box") | |||||||||
Derivative [Line Items] | |||||||||
Loans to related parties - associated companies, long-term | $ 45,000 | $ 45,000 | |||||||
River Box Holding Inc. ("River Box") | Net income | Customer concentration risk | |||||||||
Derivative [Line Items] | |||||||||
Concentration risk, percentage | 16% | 4% | |||||||
4.875% senior unsecured convertible bonds due 2023 | |||||||||
Derivative [Line Items] | |||||||||
Principal debt amount | $ 53,000 | $ 164,000 | |||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 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 | $ 400,000 | $ 600,000 |
FINANCIAL INSTRUMENTS (Schedu_2
FINANCIAL INSTRUMENTS (Schedule of currency swap transactions) (Details) kr in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 NOK (kr) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 NOK (kr) | Sep. 30, 2018 NOK (kr) | |
NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Derivative [Line Items] | ||||
Principal debt amount | kr 700 | |||
Cross Currency Interest Rate Contract | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | kr 700 | |||
Derivative, notional amount cancelled | kr 300 | |||
Cross Currency Interest Rate Contract | Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 48.1 | 400 | ||
Cross Currency Interest Rate Contract 3 | Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 80.5 | 700 | ||
Cross Currency Interest Rate Contract 4 | Designated as hedging instrument | ||||
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) $ in Thousands, kr in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 NOK (kr) | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Non-derivatives: | ||||
Equity securities | $ 5,866 | $ 7,283 | ||
Derivatives: | ||||
Total derivative instruments - short-term assets | 1,355 | 1,936 | ||
Total derivative instruments - long-term assets | $ 23,717 | 26,716 | ||
NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Non-derivatives: | ||||
Principal debt amount | kr | kr 700 | |||
NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Non-derivatives: | ||||
Principal debt amount | kr | 700 | |||
NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Non-derivatives: | ||||
Principal debt amount | kr | kr 600 | |||
4.875% senior unsecured convertible bonds due 2023 | ||||
Non-derivatives: | ||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | ||
7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Non-derivatives: | ||||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | 7.25% | ||
8.875% senior unsecured sustainability-linked bonds due 2027 | ||||
Non-derivatives: | ||||
Long-term debt | $ 150,000 | |||
Principal debt amount | $ 150,000 | |||
Senior unsecured convertible notes interest rate (in percentage) | 8.875% | 8.875% | ||
Carrying value | Fair value, measurements, recurring | ||||
Non-derivatives: | ||||
Equity securities | $ 5,866 | 7,283 | ||
Derivatives: | ||||
Total derivative instruments - short-term assets | 1,355 | 1,936 | ||
Total derivative instruments - long-term assets | 23,717 | 26,716 | ||
Interest rate/currency swap contracts - short-term payables | 25,230 | 16,861 | ||
Interest rate/currency swap contracts, long-term payables | 12,416 | 14,357 | ||
Carrying value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Non-derivatives: | ||||
Long-term debt | 37,933 | 71,243 | ||
Carrying value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Non-derivatives: | ||||
Long-term debt | 64,775 | 70,734 | ||
Carrying value | Fair value, measurements, recurring | NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Non-derivatives: | ||||
Long-term debt | 54,989 | 60,048 | ||
Carrying value | Fair value, measurements, recurring | 4.875% senior unsecured convertible bonds due 2023 | ||||
Non-derivatives: | ||||
Long-term debt | 0 | 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 | ||
Carrying value | Fair value, measurements, recurring | 8.875% senior unsecured sustainability-linked bonds due 2027 | ||||
Non-derivatives: | ||||
Long-term debt | 150,000 | 0 | ||
Fair value | Fair value, measurements, recurring | ||||
Non-derivatives: | ||||
Equity securities | 5,866 | 7,283 | ||
Derivatives: | ||||
Total derivative instruments - short-term assets | 1,355 | 1,936 | ||
Total derivative instruments - long-term assets | 23,717 | 26,716 | ||
Interest rate/currency swap contracts - short-term payables | 25,230 | 16,861 | ||
Interest rate/currency swap contracts, long-term payables | 12,416 | 14,357 | ||
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Non-derivatives: | ||||
Long-term debt | 38,123 | 71,421 | ||
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Non-derivatives: | ||||
Long-term debt | 65,585 | 70,734 | ||
Fair value | Fair value, measurements, recurring | NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Non-derivatives: | ||||
Long-term debt | 56,020 | 60,348 | ||
Fair value | Fair value, measurements, recurring | 4.875% senior unsecured convertible bonds due 2023 | ||||
Non-derivatives: | ||||
Long-term debt | 0 | 137,211 | ||
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Non-derivatives: | ||||
Long-term debt | 144,255 | 144,188 | ||
Fair value | Fair value, measurements, recurring | 8.875% senior unsecured sustainability-linked bonds due 2027 | ||||
Non-derivatives: | ||||
Long-term debt | $ 150,000 | $ 0 |
FINANCIAL INSTRUMENTS (Schedu_4
FINANCIAL INSTRUMENTS (Schedule of financial assets and liabilities measured at fair value on a recurring basis) (Details) $ in Thousands, kr in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 NOK (kr) | Dec. 31, 2022 USD ($) | May 31, 2018 USD ($) |
Assets: | ||||
Equity securities | $ 5,866 | $ 7,283 | ||
Total derivative instruments - short-term assets | 1,355 | 1,936 | ||
Total derivative instruments - long-term assets | $ 23,717 | 26,716 | ||
NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Liabilities: | ||||
Principal debt amount | kr | kr 700 | |||
NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Liabilities: | ||||
Principal debt amount | kr | 700 | |||
NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Liabilities: | ||||
Principal debt amount | kr | kr 600 | |||
4.875% senior unsecured convertible bonds due 2023 | ||||
Liabilities: | ||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | ||
7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Liabilities: | ||||
Senior unsecured convertible notes interest rate (in percentage) | 7.25% | 7.25% | ||
4.875% senior unsecured convertible bonds due 2023 | ||||
Liabilities: | ||||
Principal debt amount | $ 53,000 | $ 164,000 | ||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | 4.875% | |
Fair value | Fair value, measurements, recurring | ||||
Assets: | ||||
Equity securities | $ 5,866 | 7,283 | ||
Total derivative instruments - short-term assets | 1,355 | 1,936 | ||
Total derivative instruments - long-term assets | 23,717 | 26,716 | ||
Total assets | 30,938 | |||
Liabilities: | ||||
NOK700 million senior unsecured floating rate bonds due 2023 | 38,123 | |||
NOK700 million senior unsecured floating rate bonds due 2024 | 65,585 | |||
NOK600 million senior unsecured floating rate bonds due 2025 | 56,020 | |||
Interest rate/currency swap contracts, short-term payables | 25,230 | |||
Interest rate/currency swap contracts, long-term payables | 12,416 | 14,357 | ||
Total liabilities | 491,629 | |||
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2023 | ||||
Liabilities: | ||||
Long-term debt | 38,123 | 71,421 | ||
Fair value | Fair value, measurements, recurring | NOK700 million senior unsecured floating rate bonds due 2024 | ||||
Liabilities: | ||||
Long-term debt | 65,585 | 70,734 | ||
Fair value | Fair value, measurements, recurring | NOK600 million senior unsecured floating rate bonds due 2025 | ||||
Liabilities: | ||||
Long-term debt | 56,020 | 60,348 | ||
Fair value | Fair value, measurements, recurring | 4.875% senior unsecured convertible bonds due 2023 | ||||
Liabilities: | ||||
Long-term debt | 0 | 137,211 | ||
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Liabilities: | ||||
Long-term debt | 144,255 | $ 144,188 | ||
Fair value | Fair value, measurements, recurring | 7.25% senior unsecured sustainability-linked bonds due 2026 | ||||
Liabilities: | ||||
Long-term debt | 144,255 | |||
Fair value | Fair value, measurements, recurring | 8.875% senior unsecured sustainability-linked bonds due 2027 | ||||
Liabilities: | ||||
Long-term debt | 150,000 | |||
Fair value | Fair value, measurements, recurring | Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) | ||||
Assets: | ||||
Equity securities | 5,866 | |||
Total assets | 5,866 | |||
Liabilities: | ||||
NOK700 million senior unsecured floating rate bonds due 2023 | 38,123 | |||
NOK700 million senior unsecured floating rate bonds due 2024 | 65,585 | |||
NOK600 million senior unsecured floating rate bonds due 2025 | 56,020 | |||
Total liabilities | 453,983 | |||
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: | ||||
Long-term debt | 144,255 | |||
Fair value | Fair value, measurements, recurring | Quoted Prices in Active Markets for identical Assets/Liabilities (Level 1) | 8.875% senior unsecured sustainability-linked bonds due 2027 | ||||
Liabilities: | ||||
Long-term debt | 150,000 | |||
Fair value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Total derivative instruments - short-term assets | 1,355 | |||
Total derivative instruments - long-term assets | 23,717 | |||
Total assets | 25,072 | |||
Liabilities: | ||||
Interest rate/currency swap contracts, short-term payables | 25,230 | |||
Interest rate/currency swap contracts, long-term payables | 12,416 | |||
Total liabilities | 37,646 | |||
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_rig | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Maersk A/S (“Maersk”) | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 16 | 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% | 31% |
Evergreen Marine Corporation (Taiwan) Ltd. and its affiliate Evergreen Marine (Singapore) Pte Ltd. (collectively “Evergreen”) | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 6 | 6 |
Evergreen Marine Corporation (Taiwan) Ltd. and its affiliate Evergreen Marine (Singapore) Pte Ltd. (collectively “Evergreen”) | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 15% | 17% |
Conocophillips Skandinavia AS | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 1 | |
Conocophillips Skandinavia AS | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 11% | |
Trafigura Maritime Logistics Pte Ltd (“Trafigura”) | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 7 | 7 |
Trafigura Maritime Logistics Pte Ltd (“Trafigura”) | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 9% | 9% |
Golden Ocean Group Limited (“Golden Ocean”)* | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 8 | 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 | 8% | 9% |
MSC | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Number of chartered vessels and rigs | 9 | 9 |
MSC | Sales revenue, net | Customer concentration risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk, percentage | 1% | 1% |
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, 2023 | Dec. 31, 2022 | May 31, 2018 | Oct. 31, 2016 |
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 | $ 0.01 | $ 0.01 |
SHARE CAPITAL, ADDITIONAL PAI_4
SHARE CAPITAL, ADDITIONAL PAID-IN CAPITAL AND CONTRIBUTED SURPLUS (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | May 31, 2023 | May 15, 2023 | May 08, 2023 | Feb. 15, 2023 | Apr. 15, 2022 | Dec. 31, 2021 | May 31, 2020 | May 01, 2020 | May 31, 2018 | Oct. 31, 2016 | |
Stockholders' equity attributable to parent | $ 1,051,026,000 | $ 1,046,554,000 | $ 1,091,231,000 | ||||||||||
Dividends payable (in usd per share) | $ 0.24 | $ 0.24 | |||||||||||
Repurchase of shares, aggregate amount | $ 100,000,000 | ||||||||||||
Number of shares repurchased (in shares) | 527,417 | 0 | |||||||||||
Average price of shares (in dollars per share) | $ 9.15 | ||||||||||||
Treasury stock acquired | $ 4,800,000 | ||||||||||||
Options exercised (in shares) | 0 | 85,500 | |||||||||||
Share options exercised, intrinsic value | $ 100,000 | ||||||||||||
Share options issued, intrinsic value (in shares) | 10,786 | ||||||||||||
Shares option, weighted average exercise price (in dollars per share) | $ 8.87 | ||||||||||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Repayments of debt | $ 788,196,000 | ||||||||||||
5.75% senior unsecured convertible notes due 2021 | |||||||||||||
Senior unsecured convertible notes interest rate (in percentage) | 5.75% | ||||||||||||
Own-share lending arrangement, shares, issued (in shares) | 8,000,000 | ||||||||||||
Principal debt amount | $ 225,000,000 | ||||||||||||
5.75% senior unsecured convertible notes due 2021 | Own-Share Lending Arrangement, New Counterparty | |||||||||||||
Own-share lending arrangement, shares, issued (in shares) | 8,000,000 | ||||||||||||
4.875% senior unsecured convertible bonds due 2023 | |||||||||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | 4.875% | |||||||||||
Own-share lending arrangement, shares, issued (in shares) | 3,765,842 | ||||||||||||
Total authorized shares in lending agreement (in shares) | 7,000,000 | ||||||||||||
Principal debt amount | $ 53,000,000 | $ 164,000,000 | |||||||||||
4.875% senior unsecured convertible bonds due 2023 | Own-Share Lending Arrangement, Original Counterparties | |||||||||||||
Own-share lending arrangement, shares, issued (in shares) | 2,268,542 | ||||||||||||
4.875% senior unsecured convertible bonds due 2023 | Own-Share Lending Arrangement, New Counterparty | |||||||||||||
Own-share lending arrangement, shares, issued (in shares) | 1,496,600 | 1,496,600 | |||||||||||
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 | $ 100,000,000 | ||||||||||||
Accumulated profit/(deficit) | |||||||||||||
Stockholders' equity attributable to parent | $ 2,417,000 | $ 0 | $ 40,015,000 | $ (92,720,000) | |||||||||
Dividends, common stock | 60,862,000 | 15,994,000 | |||||||||||
Additional paid-in capital | |||||||||||||
Stockholders' equity attributable to parent | 617,370,000 | $ 615,913,000 | 616,554,000 | 621,037,000 | |||||||||
Contributed surplus | |||||||||||||
Dividends, common stock | $ 0 | $ 37,300,000 | |||||||||||
Cumulative effect, period of adoption, adjustment | |||||||||||||
Stockholders' equity attributable to parent | (1,600,000) | ||||||||||||
Cumulative effect, period of adoption, adjustment | Accumulated profit/(deficit) | |||||||||||||
Stockholders' equity attributable to parent | 4,285,000 | ||||||||||||
Cumulative effect, period of adoption, adjustment | Additional paid-in capital | |||||||||||||
Stockholders' equity attributable to parent | $ (5,863,000) | ||||||||||||
4.875% senior unsecured convertible bonds due 2023 | |||||||||||||
Senior unsecured convertible notes interest rate (in percentage) | 4.875% | ||||||||||||
Repayments of debt | $ 137,900,000 |
SHARE OPTION PLAN (Details)
SHARE OPTION PLAN (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares expired (in shares) | 68,000 | ||
Shares expired, weighted average exercise price (in dollars per share) | $ 9.47 | ||
Shares expired, aggregate intrinsic value | $ 0 | ||
Number of options awarded (shares) | 440,000 | ||
Options, expected term | 5 years | ||
Vesting period of options awarded to employees | 3 years | ||
Initial strike price (usd per share) | $ 10.34 | ||
Unrecognized compensation costs related to non-vested options granted | 1.9 | $ 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 | $ 0.8 |
FINANCE LEASE LIABILITY (Narrat
FINANCE LEASE LIABILITY (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) containership | Jun. 30, 2022 USD ($) | Dec. 31, 2022 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 | $ | $ 10.8 | $ 12 |
FINANCE LEASE LIABILITY (Obliga
FINANCE LEASE LIABILITY (Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Finance lease liability, current portion | $ 54,873 | $ 53,655 |
Finance lease liability, long-term portion | 391,553 | 419,341 |
Finance lease liability | $ 446,426 | $ 472,996 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Amounts due from and to related parties [Abstract] | |||
Loans to related parties - associated companies, long-term | $ 45,000 | $ 45,000 | |
Disposal group, disposed of by sale, not discontinued operations | River Box | |||
Amounts due from and to related parties [Abstract] | |||
Subsidiary, percentage ownership sold (in percentage) | 50.10% | ||
River Box | |||
Amounts due from and to related parties [Abstract] | |||
Loans to related parties - associated companies, long-term | 45,000 | ||
Equity method investment, ownership percentage | 49.90% | ||
Related Party | |||
Amounts due from and to related parties [Abstract] | |||
Allowance for expected credit losses | (25) | (30) | |
Other receivables | 3,589 | 4,392 | |
Loans to related parties - associated companies, long-term | 45,000 | 45,000 | |
Due to related parties | 1,504 | 1,936 | |
Related Party | Frontline Shipping | |||
Amounts due from and to related parties [Abstract] | |||
Due to related parties | 1,192 | 1,788 | |
Related Party | Frontline | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 3,298 | 3,854 | |
Due to related parties | 0 | 2 | |
Related Party | Seatankers | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 88 | 0 | |
Due to related parties | 95 | 0 | |
Related Party | Golden Ocean | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 0 | 374 | |
Due to related parties | 173 | 141 | |
Related Party | Sloan Square Capital | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 195 | 183 | |
Related Party | NorAm Drilling | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 19 | 0 | |
Related Party | River Box | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 10 | 10 | |
Related Party | Front Ocean | |||
Amounts due from and to related parties [Abstract] | |||
Due to related parties | 39 | 0 | |
Related Party | Other related parties | |||
Amounts due from and to related parties [Abstract] | |||
Other receivables, gross | 4 | 1 | |
Due to related parties | 5 | 5 | |
Related Party | River Box | |||
Amounts due from and to related parties [Abstract] | |||
Loans to related parties - associated companies, long-term | $ 45,000 | $ 45,000 |
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, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Profit sharing income – related parties | $ 0 | $ 1,510 |
Interest income related parties – direct financing leases | 0 | 382 |
Service revenue related parties – direct financing leases | 0 | 1,746 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Operating lease income | 27,195 | 25,689 |
Profit sharing income – related parties | 0 | 1,510 |
Frontline Shipping | ||
Related Party Transaction [Line Items] | ||
Interest income related parties – direct financing leases | 0 | 382 |
Service revenue related parties – direct financing leases | 0 | 1,746 |
Direct financing lease repayments | 0 | 1,752 |
Seadrill | ||
Related Party Transaction [Line Items] | ||
Operating lease income | $ 0 | $ 17,770 |
RELATED PARTY TRANSACTIONS (S_3
RELATED PARTY TRANSACTIONS (Schedule of fees with related parties) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | $ 11,343 | $ 12,826 |
Administrative expenses – related parties | 785 | 757 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | 10,136 | 10,135 |
Commissions and Brokerage | 81 | 0 |
Operating Management Fees | 0 | 22 |
Seatankers | ||
Related Party Transaction [Line Items] | ||
Administrative expenses – related parties | 143 | 251 |
Front Ocean | ||
Related Party Transaction [Line Items] | ||
Administrative expenses – related parties | 311 | 210 |
Seatankers Management Norway AS | ||
Related Party Transaction [Line Items] | ||
Office facilities | 35 | 62 |
Frontline Management AS | ||
Related Party Transaction [Line Items] | ||
Office facilities | 156 | 128 |
Frontline Corporate Services Ltd. | ||
Related Party Transaction [Line Items] | ||
Office facilities | 95 | 60 |
Flex LNG Management Ltd | ||
Related Party Transaction [Line Items] | ||
Office facilities | 0 | 3 |
Golden Ocean Shipping Co Pte. Ltd. | ||
Related Party Transaction [Line Items] | ||
Office facilities | 43 | 41 |
Frontline | ||
Related Party Transaction [Line Items] | ||
Vessel operating expenses – related parties | 1,207 | 2,669 |
Newbuilding Supervision Fees | 709 | 466 |
Commissions and Brokerage | 280 | 152 |
Administrative expenses – related parties | $ 2 | $ 2 |
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, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Loans to related parties - associated companies, long-term | $ 45,000 | $ 45,000 | |
Interest income – related parties, long term loans to associated companies | 2,263 | $ 2,263 | |
River Box | |||
Related Party Transaction [Line Items] | |||
Loans to related parties - associated companies, long-term | 45,000 | ||
Interest income – related parties, long term loans to associated companies | $ 2,300 | $ 2,300 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) shares | Dec. 31, 2019 shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) vessel | Dec. 31, 2022 USD ($) shares | Dec. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Number of vessels owned | vessel | 2 | ||||||
Number of vessels sold | vessel | 2 | ||||||
Dividend income - related parties | $ 802 | $ 0 | |||||
Common stock - Frontline Ltd | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares repurchased in forward contract (in shares) | shares | 3.4 | 1.4 | |||||
Repurchase price, including accrued interest | $ 16,700 | ||||||
Shares sold in forward contract (in shares) | shares | 1.4 | ||||||
Principal debt amount | $ 15,600 | $ 36,800 | |||||
Debt and equity securities, realized gain | $ 4,600 | $ 2,300 | |||||
Front Force and Front Energy | |||||||
Related Party Transaction [Line Items] | |||||||
Termination fee on termination of charters | 4,500 | ||||||
Front Force and Front Energy | |||||||
Related Party Transaction [Line Items] | |||||||
Gain (loss) on sale of loans and leases | $ 1,500 |
ALLOWANCE FOR EXPECTED CREDIT_3
ALLOWANCE FOR EXPECTED CREDIT LOSSES (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | $ 3,266 |
Net investment in lease, allowance for credit loss, beginning balance | 192 |
Allowance recorded in net income of associated companies | (402) |
Allowance for credit loss, ending balance | 2,864 |
Net investment in lease, allowance for credit loss, ending balance | 93 |
Trade receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 260 |
Allowance recorded in net income of associated companies | (235) |
Allowance for credit loss, ending balance | 25 |
Other receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 904 |
Allowance recorded in net income of associated companies | (63) |
Allowance for credit loss, ending balance | 841 |
Related Party receivables | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 30 |
Allowance recorded in net income of associated companies | (5) |
Allowance for credit loss, ending balance | 25 |
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 | 192 |
Allowance recorded in net income of associated companies | (99) |
Net investment in lease, allowance for credit loss, ending balance | 93 |
Other long-term assets | |
Disclosure of Allowance for Expected Credit Losses by Balance Sheet Items [Line Items] | |
Allowance for credit loss, beginning balance | 1,880 |
Allowance recorded in net income of associated companies | 0 |
Allowance for credit loss, ending balance | $ 1,880 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Line Items] | ||
Vessels, rigs and equipment, net | $ 2,589,834 | $ 2,646,389 |
Total investment in sales-type lease, direct financing lease and leaseback assets | 111,350 | 119,023 |
Total assets | 3,806,136 | 3,861,330 |
Book value of assets with finance lease liabilities | 594,000 | 615,000 |
Asset Pledged as Collateral without Right | ||
Commitments and Contingencies [Line Items] | ||
Vessels, rigs and equipment, net | 2,532,000 | 2,460,000 |
Total investment in sales-type lease, direct financing lease and leaseback assets | 111,000 | 119,000 |
Total assets | 2,643,000 | 2,579,000 |
Vessels under finance lease, net | ||
Commitments and Contingencies [Line Items] | ||
Book value of assets with finance lease liabilities | $ 594,000 | $ 615,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands | Jun. 30, 2023 USD ($) carrier vessel well | Dec. 31, 2022 USD ($) vessel |
Commitments and Contingencies [Line Items] | ||
Finance lease liability | $ 446,426 | $ 472,996 |
Number of wells | well | 2 | |
Contractual commitment term | 115 days | |
Debt for acquired equipment | ||
Commitments and Contingencies [Line Items] | ||
Line of credit | $ 2,100,000 | 2,200,000 |
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 | $ 194,200 | 209,700 |
Procurement Of Scrubbers | ||
Commitments and Contingencies [Line Items] | ||
Number of container vessels with amended charter terms | $ 57,000 | $ 35,300 |
Number of vessels being upgraded | vessel | 6 | 6 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 6 Months Ended | ||||
Aug. 31, 2023 USD ($) well | Aug. 31, 2023 USD ($) well shares | Jun. 30, 2023 USD ($) well shares | Jun. 30, 2022 shares | Aug. 17, 2023 $ / shares | May 15, 2023 $ / shares | Feb. 15, 2023 $ / shares | |
Subsequent Event [Line Items] | |||||||
Dividends payable (in usd per share) | $ / shares | $ 0.24 | $ 0.24 | |||||
Number of wells | well | 2 | ||||||
Contractual commitment term | 115 days | ||||||
Number of shares repurchased (in shares) | shares | 527,417 | 0 | |||||
Treasury stock acquired | $ | $ 4.8 | ||||||
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends payable (in usd per share) | $ / shares | $ 0.24 | ||||||
Number of wells | well | 1 | 1 | |||||
Number of optional wells | well | 1 | ||||||
Contractual commitment term | 200 days | 200 days | |||||
Proceeds from sale of leaseback asset | $ | $ 52 | ||||||
Number of shares repurchased (in shares) | shares | 566,378 | ||||||
Treasury stock acquired | $ | $ 5.3 |
Uncategorized Items - sfl-20230
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |