SFL Corporation announces acquisition of three newbuild LR2 product tankers in combination with long term charters
SFL Corporation Ltd. 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, according to the company's release.
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 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.
