SFL Corporation Ltd – Acquisition of four LR2 product tankers in combination with long term charters
By Press Release: SFL Corporation Ltd has announced on November 22, 2021 that it has agreed to acquire four modern Aframax LR2 product tankers for an aggregate purchase price of $160 million in combination with long term time charters to a subsidiary of Trafigura, a world-leading commodity trading and logistics company.
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 20% of the Company’s issued and outstanding shares, is also a major shareholder in Frontline.
The charter period of the vessels will be for minimum five years with extension options thereafter, adding approximately $160 million to SFL’s fixed-rate backlog. The charterer will also have the option to develop a sale of the vessels during the charter period, subject to a profit share mechanism with SFL.
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 $1 billion to our charter backlog and will continue to explore new opportunities going forward”.
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 23 11 40 11