Re: Oil Price Rising ... SFL/FRO?
SFL still benefits. Besides the profit sharing, their tanker leases improve in credit quality. Future lease renewals are more likely and more likely to be at favorable terms. Shipping markets have been weak in general making it tough for SFL to invest in ships providing a return in excess of cost of capital. Tightening up of one area of shipping helps.
Also, the largely written off Seadrill assets could start contributing to earnings if the oil market picks up sufficiently that offshore drilling becomes profitable. This segment has huge upside, though I doubt oil markets will climb that high.