Acquisition of four LR2 product tanks in combination with long-term charters
SFL Corporation Ltd. (NYSE: SFL) (âSFLâ or the âCompanyâ) announced today that it has agreed to acquire four modern Aframax LR2 tankers for an aggregate purchase price of $ 160 million in combination with long-term charters to a subsidiary of Trafigura, world leader in commodity trading and logistics.
The ships are built in 2014 and 2015 and feature modern eco-design features, including exhaust gas cleaning systems. The Company plans to take delivery of the vessels between December 2021 and February 2022.
The sellers are subsidiaries of Frontline Limited (âFrontlineâ) and the purchase price is in accordance with the appraisals of independent shipping brokers. Hemen Holdings Ltd., which owns approximately 20% of the issued and outstanding shares of the Company, is also a significant shareholder of Frontline.
The vessel charter period will be at least five years with options to extend thereafter, adding approximately $ 160 million to SFL’s fixed rate backlog. The charterer will also have the possibility of developing a sale of the vessels during the charter period, subject to a profit-sharing mechanism with SFL.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: âWe are very pleased to further expand our presence in the oil tanker market and the transaction demonstrates our ability to develop opportunities and achieve sustained growth through repeated transactions with our customers. We have added over $ 1 billion to our backlog this year and will continue to explore new opportunities in the future â.
22 November 2021
Board of directors
SFL Company Ltd.
Investor and analyst contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
AndrÃ© Reppen, Chief Treasurer and Senior Vice President, SFL Management AS
+47 23 11 40 55
Ole B. Hjertaker, Managing Director, SFL Management AS
+47 23 11 40 11
SFL has a unique experience in the marine industry and has paid dividends quarterly since it was first listed on the New York Stock Exchange in 2004. The Company’s fleet of vessels is divided between container ships, bulk carriers, tankers and oil rigs. forms of offshore drilling. SFL’s long-term distribution capability is supported by a long-term charter portfolio and significant growth in the asset base over time. Further information is available on the Company’s website: www.sflcorp.com
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking statements. These statements are based on various assumptions, many of which in turn are based on other assumptions, including SFL’s management review of historical operating trends, data in the Company’s records and other available data. from third parties. Although SFL believes these assumptions were reasonable when made, as the assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot guarantee that it will or will realize those expectations, beliefs or intentions. .
Significant factors which, in the opinion of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of the global economies, fluctuations in currencies and interest rates, economic conditions general market conditions in the shipping industry, which is cyclical and volatile, including fluctuations in charter rental rates and vessel values, changes in demand in the markets in which the Company operates, including including changes in consumer demand for petroleum to other energy sources or changes in trade flows for refined petroleum products, changes in market demand in countries that import commodities and of finished products and changes in the quantity and location of production of these finished products and products, technological innovation in sects eurs in which we operate and customer requirements for quality and efficiency, increased inspection procedures and import and export controls, changes in the operation of the Company management costs, including prices of bunkering, dry dock and insurance costs, the performance of the Company’s charterers and other counterparties with which the Company deals, the impact of any restructuring of the counterparties with which the Company deals, including related bankruptcy proceedings to Seadrill and some of its subsidiaries and the on-time delivery of vessels under construction within the limits of contract price, government laws and regulations, including environmental regulations, which are in addition to our costs or our customers’ costs, potential liability for ongoing or future disputes, potential disruption of shipping routes due to accidents, political instability tick, terrorist attacks, piracy or international hostilities, the duration and severity of the current coronavirus epidemic and government responses to it and the impact on the demand for commercial shipping and the state of the financial markets, and other material factors as described from time to time in 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 statement, whether as a result of new information, future events or otherwise, except as required by law.