SFL - Newbuild order for two additional LNG-fuelled car carriers against long term charters

Rhea-AI Summary

SFL Corporation Ltd. (NYSE: SFL) has announced long-term charters for two ultra-modern dual-fuel car carriers, utilizing liquified natural gas (LNG), with a leading Asia-based transportation company. The vessels, scheduled for delivery in Q1-Q2 2024, have a total construction cost of approximately $155 million. This deal adds over $200 million to the company's charter backlog, contributing to SFL's strategy of focusing on lower carbon footprint assets. Recently, SFL has also increased its charter backlog by more than $700 million through multiple vessel acquisitions.

Positive

• Secured long-term charters for two dual-fuel car carriers, enhancing revenue stability.
• Added over $200 million to the charter backlog, strengthening financial outlook.
• Recent acquisitions have boosted the charter backlog by more than $700 million.

Negative

• None.

SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced today that it has entered into long term charters with a leading Asia-based transportation company for two ultra-modern dual-fuel car carriers, designed to use liquified natural gas (LNG).

The vessels are sister vessels of the two 7,000 CEU Pure Car and Truck Carriers under construction, chartered to the Volkswagen Group, and scheduled delivery from the shipyard is in Q1-Q2 of 2024.

The aggregate construction cost will be approximately $155 million, and the charter period will be ten years from delivery of the vessels, adding more than $200 million to our contracted charter backlog.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty.

Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cash flow and building our long-term distribution capacity.”

August 18, 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.