SFL Corporation Ltd. Announces Acquisition of Three Newbuild LR2 Product Tankers in Combination with Long Term Charters
March 20, 2024 at 06:50 am EDT
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SFL Corporation Ltd. announced that it has agreed to acquire three new LR2 product tankers for an aggregate purchase price of approximately $230 million in combination with long term time charters to a world-leading energy and commodities company. The vessels are currently under construction in China, with the latest eco-design features. The sellers are affiliates of the Company?s largest shareholder Hemen Holding Ltd, and the purchase price is in line with valuations by independent shipbrokers.
The Company expects to take delivery of the vessels between the second and fourth quarter of this year, and the charter period will be minimum five years plus up to three years of extension options. This adds close to $200 million to SFL?s fixed-rate backlog, excluding the optional years. The charterer will have options to purchase the vessels after year five and eight, subject to a profit share mechanism with SFL.
SFL Corporation Ltd. is an international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. The Companyâs assets consist of 15 dry bulk carriers, 32 container vessels (including seven chartered-in vessels), one jack-up drilling rig, one harsh environment semi-submersible drilling unit, six oil product tankers, seven crude oil tankers, three car carriers and four car carriers. The Company owns and manages a fleet of 73 vessels, split between tankers, bulkers, container vessels, car carriers and energy assets. Its vessels include SFL Yangtze, SFL Yukon, SFL Sara, SFL Kate, SFL Humber, SFL Hudson, Arabian Sea, Thor Highway, Odin Highway, Maersk Pelepas, Maersk Phuket Maersk, Linus, SFL Puma, SFL Panther, Semi-submersible, SFL Albany, SFL Fraser and others. It also partly owns four chartered-in container vessels in its associated companies.