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FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
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, 2026December 31, 2025
Designated derivative instruments - long-term assets:
Interest rate swaps806 — 
Cross currency interest rate swaps8,200 5,741 
Non-designated derivative instruments - long-term assets:
Interest rate swaps12,478 7,887 
Cross currency interest rate swaps639 464 
Total derivative instruments - long-term assets22,123 14,092 
(in thousands of $)June 30, 2026December 31, 2025
Designated derivative instruments - long-term liabilities:
Interest rate swaps240 5,022 
Non-designated derivative instruments - long-term liabilities:
Interest rate swaps— 1,124 
Total derivative instruments - long-term liabilities240 6,146 

Movements in the Consolidated Statement of Operations are summarized as follows:

Six months ended
(in thousands of $)
June 30, 2026June 30, 2025
Net fair value movements of non-designated derivatives5,889 (4,183)
Net cash movement on non-designated derivatives and swap settlements1,315 1,621 
Total cash movement and valuation gain/(loss) on non-designated derivatives
7,204 (2,562)

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, 2026, the Company and its consolidated subsidiaries had entered into interest rate swap transactions, involving the payment of fixed rates in exchange for NIBOR or SOFR. The total net notional principal amount subject to interest rate swap agreements as of June 30, 2026, was $0.8 billion (December 31, 2025: $0.8 billion).

Foreign currency risk management

The Company is party to currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner, some of which are designated as hedges against the NOK750.0 million senior unsecured floating rate bonds due 2029. The total net notional principal amount subject to cross currency swap agreements as of June 30, 2026 was NOK750.0 million (December 31, 2025: NOK750.0 million).

Other than the NOK750 million senior unsecured floating rate bonds due 2029, 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, 2026 and December 31, 2025 are as follows: 

June 30, 2026December 31, 2025
(in thousands of $)Carrying valueFair valueCarrying valueFair value
Non-derivatives:
Equity securities4,873 4,873 4,146 4,146 
Debt securities140 140 — — 
7.25% senior unsecured sustainability-linked bonds due 2026
— — 150,000 151,500 
8.875% senior unsecured sustainability-linked bonds due 2027
150,000 151,215 150,000 154,575 
8.25% senior unsecured sustainability-linked bonds due 2028
147,600 152,796 147,600 152,213 
NOK750 million senior unsecured floating rate bonds due 2029
75,740 75,494 74,327 74,327 
7.75% senior unsecured sustainability-linked bonds due 2030
225,000 232,808 144,400 146,927 
Derivatives:
Interest rate/ currency swap contracts - long-term receivables22,123 22,123 14,092 14,092 
Interest rate/ currency swap contracts - long-term payables240 240 6,146 6,146 

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, 2025, 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 investment in equity securities and the Company issued senior unsecured bonds are measured at fair value using Level 1 inputs, while the Company’s derivative instruments are measured using Level 2 inputs. The estimated fair value of the Company's investment in debt securities is determined using Level 3 inputs.

As of June 30, 2026, investment in equity securities consist of NorAm Drilling shares trading on the Euronext Growth in Oslo.

The estimated fair values of the 7.25% senior unsecured sustainability-linked bonds due 2026, the 8.875% senior unsecured sustainability-linked bonds due 2027, the 8.25% senior unsecured sustainability-linked bonds due 2028, the 7.75% senior unsecured sustainability-linked bonds due 2030 and the floating rate NOK denominated bonds due 2029 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 NIBOR or SOFR interest rates as of June 30, 2026.

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 DNB Bank ASA, Skandinaviska Enskilda Banken AB (publ), Danske Bank A/S, ING Bank N.V and Sumitomo Mitsui Banking Corporation. However, the Company believes this risk is remote, as these financial institutions are established and reputable establishments.

The Company does not require collateral or other securities to support financial instruments that are subject to credit risk, however certain of the Company’s counterparties require the Company to periodically post collateral when the fair value of the financial instruments exceeds or is below specified thresholds. As of June 30, 2026, no cash collateral was posted by the Company (December 31, 2025: $0.0 million).

There is also a concentration of revenue risk with Maersk A/S (“Maersk”), ConocoPhillips Skandinavia AS (“ConocoPhillips”) and Hapag-Lloyd AG, to whom the Company charters several vessels and earns a significant proportion of its revenues.