Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Ship Finance International: Diversification Is Key To Overcoming Challenging Oil Market

Ship leasing company Ship Finance International (NYSE:SFL) is facing a challenging oil market due to lackluster global growth, a glut of non-OPEC oil, and a surplus of capacity. For a company whose primary business is owning and leasing out a fleet of crude oil tankers under long-term, fixed-price contracts, this market reality represents a big problem. Now fortunately, because of the firm's long-term contracted $5.8B revenue backlog, SFL is doing a good job staying afloat in the choppy market.

Yet with tanker markets likely to remain weak for the next 12-24 months, it is important for SFL to think about other self-help revenue strategies. The most important of these initiatives to date for the company is its move...

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