SFL - Sale of suexmax and chemical tankers
SFL Corporation Ltd. (NYSE: SFL) has announced the sale of two 2008-built chemical tankers, SFL Weser and SFL Elbe, for approximately $19.5 million. The vessels, which have been operating in the spot market for two years, are expected to be delivered to the buyer in Q2. A book impairment of around $7 million will be recorded in Q1 due to this sale. Additionally, the company confirmed the delivery of the Glorycrown tanker, sold for $43.5 million, resulting in a $9 million book gain. SFL focuses on renewing its fleet, and proceeds will be reinvested into new assets.
- Sale of two vessels for $19.5 million boosts liquidity.
- Realization of a $9 million book gain from the sale of Glorycrown.
- Strategic divestment aligns with fleet renewal and diversification efforts.
- Expected book impairment of $7 million will impact Q1 earnings.
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the "Company") announces that it has agreed to sell the two 2008-built chemical tankers SFL Weser and SFL Elbe to an unrelated third party. The sales proceeds to SFL are approximately
The 2009-built suezmax tanker Glorycrown, which was announced sold in February, has been delivered to its new owner in March. The final sales price of approximately
Divesting of older vessels is part of SFL’s strategy to continuously renew and diversify its fleet, and the net cash proceeds are expected to be reinvested in new assets.
March 31, 2023
The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda
Questions can be directed to SFL Management AS:
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
Marius Furuly, Vice President - IR, SFL Management AS
+47 23 11 40 16
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
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, 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 was the sale price of the SFL Weser and SFL Elbe tankers by SFL?
What is the expected book impairment from the sale of the vessels?
What are the financial implications of the recent sale of Glorycrown by SFL?
When is the delivery of the sold tankers expected to occur?
How does the sale of older vessels fit into SFL's business strategy?
