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SFL (NYSE: SFL) has agreed to acquire two LNG dual-fuel chemical carriers for approximately $114 million. The vessels are set to be delivered between June and August this year and will be employed for a minimum of eight years. SFL has secured long-term employment for the vessels with affiliates of Stolt Tankers, a subsidiary of Stolt-Nielsen The transaction marks another accretive investment for SFL, adding sophisticated chemical carriers to its fleet. The vessels will join the six LNG dual-fuel vessels already in SFL's fleet, showcasing the Company's ability to expand its maritime assets with vessels suitable for long-term charters to industry-leading companies. The market dynamics for stainless-steel chemical tankers are favorable, with steady growth in demand, an aging fleet, and a order book. The acquisition provides SFL with the opportunity to participate in a strong market and increase its charter backlog. The partnership with Stolt-Nielsen aims to lower the age profile and carbon intensity of the fleet while enhancing flexibility in the core 33,000 deadweight segment.
SFL (NYSE: SFL) ha concordato l'acquisto di due portacontainer chimici dual-fuel LNG per circa 114 milioni di dollari. Le navi saranno consegnate tra giugno e agosto di quest'anno e saranno impiegate per un minimo di otto anni. SFL ha assicurato un impiego a lungo termine per le navi con le affiliate di Stolt Tankers, una sussidiaria di Stolt-Nielsen. La transazione rappresenta un altro investimento accrescitivo per SFL, arricchendo la sua flotta con portacontainer chimici sofisticati. Le navi si uniranno alle sei imbarcazioni dual-fuel LNG già presenti nella flotta di SFL, dimostrando la capacità dell'azienda di espandere i suoi asset marittimi con navi adatte a noleggi a lungo termine con compagnie leader nel settore. Le dinamiche di mercato per i tanker chimici in acciaio inossidabile sono favorevoli, con una crescita costante della domanda, una flotta che invecchia e un libro degli ordini robusto. L'acquisizione offre a SFL l'opportunità di partecipare in un mercato forte e aumentare il suo backlog di noleggi. La partnership con Stolt-Nielsen mira a ridurre il profilo d'età e l'intensità di carbonio della flotta, aumentando al contempo la flessibilità nel segmento chiave di 33.000 tonnellate di portata lorda.
SFL (NYSE: SFL) ha acordado adquirir dos transportadores químicos de combustible dual LNG por aproximadamente 114 millones de dólares. Se espera que los buques sean entregados entre junio y agosto de este año y estarán empleados por un mínimo de ocho años. SFL ha asegurado un empleo a largo plazo para los buques con filiales de Stolt Tankers, una subsidiaria de Stolt-Nielsen. La transacción marca otra inversión rentable para SFL, añadiendo transportadores químicos sofisticados a su flota. Los buques se unirán a los seis buques dual-fuel LNG ya presentes en la flota de SFL, demostrando la capacidad de la compañía para expandir sus activos marítimos con buques adecuados para charters a largo plazo con empresas líderes en la industria. La dinámica del mercado para los tanqueros químicos de acero inoxidable es favorable, con un crecimiento constante en la demanda, una flota envejecida y un sólido libro de pedidos. La adquisición proporciona a SFL la oportunidad de participar en un mercado fuerte y aumentar su cartera de charters. La asociación con Stolt-Nielsen tiene como objetivo reducir el perfil de edad e intensidad de carbono de la flota mientras mejora la flexibilidad en el segmento central de 33,000 toneladas de peso muerto.
SFL(NYSE: SFL)은 약 1억 1천 4백만 달러에 LNG 듀얼-연료 화학 운반선 2척을 인수하기로 합의했습니다. 이 선박들은 올해 6월에서 8월 사이에 인도될 예정이며, 최소 8년간 사용될 것입니다. SFL은 Stolt-Nielsen의 자회사인 Stolt Tankers의 계열사와 함께 선박의 장기적인 고용을 확보했습니다. 이 거래는 SFL에게 또 다른 수익성 있는 투자를 의미하며, 그들의 함대에 정교한 화학 운반선을 추가하는 것을 의미합니다. 이 선박들은 SFL 함대에 이미 있는 6척의 LNG 듀얼-연료 선박에 합류할 것이며, 회사가 업계 선두 회사들과의 장기 차터에 적합한 선박으로 해상 자산을 확장하는 능력을 보여줍니다. 스테인리스 강 화학 탱커의 시장 역학은 수요의 꾸준한 성장, 노후화된 함대, 강력한 주문서와 함께 유리하며, 이 인수는 SFL에 강한 시장에 참여하고 차터 백로그를 증가시킬 기회를 제공합니다. Stolt-Nielsen과의 파트너십은 함대의 연령 프로파일과 탄소 강도를 낮추고 핵심 33,000 데드웨이트 부문에서의 유연성을 향상시키는 것을 목표로 합니다.
SFL (NYSE: SFL) a convenu d'acquérir deux transporteurs chimiques à double carburant LNG pour environ 114 millions de dollars. Les navires doivent être livrés entre juin et août de cette année et seront employés pour un minimum de huit ans. SFL a sécurisé un emploi à long terme pour les navires auprès des filiales de Stolt Tankers, une filiale de Stolt-Nielsen. La transaction représente un autre investissement lucratif pour SFL, ajoutant des transporteurs chimiques sophistiqués à sa flotte. Les navires rejoindront les six navires à double carburant LNG déjà présents dans la flotte de SFL, démontrant la capacité de l'entreprise à étendre ses actifs maritimes avec des navires adaptés pour des charters à long terme avec des entreprises leaders dans le secteur. La dynamique du marché pour les tankers chimiques en acier inoxydable est favorable, avec une croissance régulière de la demande, une flotte vieillissante et un carnet de commandes solide. L'acquisition offre à SFL l'opportunité de participer à un marché fort et d'augmenter son carnet de charters. Le partenariat avec Stolt-Nielsen vise à réduire le profil d'âge et l'intensité en carbone de la flotte tout en améliorant la flexibilité dans le segment central de 33 000 tonnes de port en lourd.
SFL (NYSE: SFL) hat zugestimmt, zwei LNG-Dual-Fuel-Chemikalientanker für etwa 114 Millionen Dollar zu erwerben. Die Schiffe sollen zwischen Juni und August dieses Jahres geliefert werden und werden mindestens acht Jahre lang eingesetzt. SFL hat eine langfristige Beschäftigung für die Schiffe mit Tochtergesellschaften von Stolt Tankers, einer Tochtergesellschaft von Stolt-Nielsen, gesichert. Die Transaktion stellt eine weitere ertragssteigernde Investition für SFL dar und fügt seiner Flotte anspruchsvolle Chemikalientanker hinzu. Die Schiffe werden zu den sechs LNG-Dual-Fuel-Schiffen in der SFL-Flotte stoßen, was die Fähigkeit des Unternehmens zeigt, seine maritimen Vermögenswerte mit für langfristige Charterverträge geeigneten Schiffen für führende Unternehmen der Branche zu erweitern. Die Marktdynamik für Edelstahl-Chemikalientanker ist günstig, mit stetigem Nachfragewachstum, einer alternden Flotte und einem starken Auftragsbuch. Der Erwerb bietet SFL die Möglichkeit, an einem starken Markt teilzunehmen und seinen Charterrückstand zu erhöhen. Die Partnerschaft mit Stolt-Nielsen zielt darauf ab, das Altersprofil und die Kohlenstoffintensität der Flotte zu senken und gleichzeitig die Flexibilität im Kernsegment der 33.000 Tonnen Tragfähigkeit zu erhöhen.
Positive
SFL has agreed to acquire two LNG dual-fuel chemical carriers for approximately $114 million.
The vessels will be delivered between June and August this year and will be employed for a minimum of eight years.
SFL has secured long-term employment for the vessels with affiliates of Stolt Tankers, a subsidiary of Stolt-Nielsen
The transaction adds sophisticated chemical carriers to SFL's fleet, expanding its portfolio of maritime assets.
The acquisition aligns with the favorable market dynamics for stainless-steel chemical tankers, offering SFL the opportunity to participate in a strong market.
The partnership with Stolt-Nielsen aims to lower the age profile and carbon intensity of the fleet while enhancing flexibility in the core 33,000 deadweight segment.
Negative
None.
Insights
SFL Corporation's strategic acquisition of two LNG dual-fuel chemical carriers represents a notable forward step in diversifying their maritime asset portfolio. This move aligns with the industry's shift towards more environmentally friendly vessels that also meet rising global demand for chemical transport. The partnership with Stolt Tankers not only ensures a guaranteed revenue stream through long-term charters but also positions SFL within a growth trajectory in the chemical logistics sector. The dual-earning strategy—one vessel on fixed-rate and the other operating in a pool—allows SFL to capitalize on market rate fluctuations while maintaining a steady income base.
From a financial perspective, the acquisition of these vessels for approximately $114 million and their subsequent long-term employment serves as a significant investment in SFL's future earnings capability. The structured deals involving fixed-rate time-charters, profit share mechanisms and purchase options indicate a savvy approach to managing risk and potential profitability. The longevity of the contracts, spanning at least eight years with extensions, provides a clear view of the future cash flow and could justify the capital expenditure when assessing the impact on SFL's balance sheet. This transaction could lead to an uptick in investor confidence, reflecting positively on the firm's stock valuation.
By investing in LNG dual-fuel technology, SFL demonstrates an active commitment to reducing the carbon footprint of its fleet. This move is significant not only from an environmental standpoint but also from a regulatory perspective as it anticipates stricter emissions standards in the maritime industry. It's a proactive approach that could provide SFL with a competitive edge in securing charters with businesses increasingly focused on sustainability. The integration of these vessels into SFL's operations will be closely watched by industry stakeholders, as they lean into the broader trend of green energy adoption in shipping.
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) today announced that it has agreed to acquire two LNG dual-fuel 33,000 dwt chemical carriers. The vessels are built in 2022/2023 and fitted with stainless steel cargo tanks, and the aggregate purchase price is approximately $114 million. SFL has arranged long term employment for the vessels with affiliates of Stolt Tankers, a subsidiary of the world-leading chemical logistics company Stolt-Nielsen Limited (“Stolt-Nielsen”).
The Company expects to take delivery of the vessels between June and August this year and both vessels will be employed for a minimum of eight years. One vessel will be on a fixed rate time-charter and one vessel will be employed in a pool with similar-sized vessels. The fixed rate vessel has extension options of up to three years, in addition to purchase options after year five and eight, subject to a profit share mechanism with SFL.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: «The announcement marks another accretive investment for the Company and will add two sophisticated chemical carriers to our fleet. With these vessels, we will have six LNG dual-fuel vessels in our fleet, and the transaction demonstrates our ability to expand our portfolio of maritime assets with vessels suitable for long term charters to industry leading companies.
We are excited to build a new relationship with Stolt-Nielsen who has a market leading position in the logistics for sophisticated chemicals. The market dynamics for stainless-steel chemical tankers are also very favorable now, with steady underlying growth in demand, ageing fleet and a limited orderbook. The combination of fixed-rate charter and pool earnings will therefore give us the opportunity to participate in a strong market, while also providing increased charter backlog.”
Commenting on the transaction, Udo Lange, Chief Executive Officer, Stolt-Nielsen said “I’m pleased to announce our new partnership with SFL Corporation on two modern chemical tankers. As well as securing attractively priced on-the-water tonnage in a firm chemical tanker market, these modern, dual-fuel ships will lower the age profile and carbon intensity of our fleet while offering more flexibility in our core 33,000 deadweight segment. This transaction also demonstrates our commitment to asset-light fleet replacement with best-in-class partners like SFL Corporation, NYK Line, and CMB Group to enhance profitability and reduce our balance sheet intensity. As a leading liquid logistics provider, it is critical Stolt-Nielsen balances capital allocation across all our businesses to drive further improvements in our industry leading customer service offering and reliability.”
April 23, 2024
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 Sander Borgli, Vice President - IR, SFL Management AS +47 23 11 40 73
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 comprised of tanker vessels, bulkers, container vessels, car carriers 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
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, 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 SFL acquiring?
SFL is acquiring two LNG dual-fuel chemical carriers for approximately $114 million.
Who are the vessels being employed with for a minimum of eight years?
The vessels are being employed with affiliates of Stolt Tankers, a subsidiary of Stolt-Nielsen for a minimum of eight years.
When are the vessels expected to be delivered?
The vessels are expected to be delivered between June and August this year.
How many LNG dual-fuel vessels will be in SFL's fleet after this acquisition?
After this acquisition, SFL will have a total of six LNG dual-fuel vessels in its fleet.
What market dynamics are favorable for the acquisition of these vessels?
The market dynamics for stainless-steel chemical tankers are favorable, with steady growth in demand, an aging fleet, and a order book.
Which company has SFL partnered with in this transaction?
SFL has partnered with Stolt-Nielsen, NYK Line, and CMB Group in this transaction.
