SFL - Acquisition of four LR2 product tankers in combination with long term charters
SFL Corporation Ltd. (NYSE: SFL) announced the acquisition of four Aframax LR2 product tankers for $160 million alongside long-term charters to a Trafigura subsidiary. The vessels, built in 2014-2015 with eco-design features, are set for delivery between December 2021 and February 2022. The charter period is a minimum of five years, contributing an additional $160 million to SFL's fixed-rate backlog. This deal demonstrates SFL's commitment to growth in the tanker market, adding over $1 billion to its charter backlog this year.
- Acquisition of four Aframax LR2 product tankers for $160 million enhances fleet capacity.
- Long-term charters to Trafigura expected to add $160 million to the fixed-rate backlog.
- The deal reflects SFL's strategic growth in the tanker market.
- None.
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced today that it has agreed to acquire four modern Aframax LR2 product tankers for an aggregate purchase price of
The vessels are built in 2014 and 2015 and have modern eco-design features including exhaust gas cleaning systems. The Company expects to take delivery of the vessels between December 2021 and February 2022.
The sellers are affiliates of Frontline Limited (“Frontline”) and the purchase price is in line with valuations by independent shipbrokers. Hemen Holdings Ltd., who owns approximately
The charter period of the vessels will be for minimum five years with extension options thereafter, adding approximately
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “We are very pleased to further expand our presence in the tanker market and the transaction demonstrates our ability to develop opportunities and achieve sustained growth through repeat transactions with our customers. We have this year added more than
November 22, 2021
The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda
Investor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
André Reppen, Chief Treasurer & Senior Vice President, SFL Management AS
+47 23 11 40 55
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 23 11 40 11
About SFL
SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is split between container vessels, bulkers, tankers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, including the bankruptcy proceedings relating to Seadrill and certain of its subsidiaries and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
FAQ
What is the value of SFL's new tanker acquisition?
What impact will the tanker acquisition have on SFL's financials?
When will SFL take delivery of the new tankers?
Who is the charterer for the newly acquired tankers?
How long is the charter period for the new vessels?
