Bermuda’s SFL Corporation to acquire Suezmax tanker trio
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Bermuda’s SFL to acquire Suezmax tanker trio

08 Sep 2021 (Last Updated September 8th, 2021 15:50)

The 2019-built ships will be chartered for a minimum period of five years.

Bermuda’s SFL to acquire Suezmax tanker trio
The ships have eco-design features, including exhaust gas cleaning systems. Credit: Holger Schué / Pixabay.

Bermuda-based SFL has signed an agreement to purchase three Suezmax tankers, along with long term time charters to an unnamed commodity trading and logistics firm.

SFL is expected to receive the vessels in Q4 2021.

The 2019-built ships have eco-design features, including exhaust gas cleaning systems.

With extension options, the vessels will be chartered for a minimum period of five years, adding nearly $140m to SFL’s fixed-rate backlog.

Subject to a profit share mechanism with SFL, the charterer will also have the opportunity to develop a sale of the ships during the charter period.

SFL Management CEO Ole B Hjertaker said: “This acquisition demonstrates our ability to achieve sustained growth through new transactions with strong counterparties in multiple shipping segments. The spot tanker market is soft currently, and asset values have not moved like several other shipping segments.

“From a counter-cyclical perspective, we therefore believe this could be an attractive entry point in combined with long-term charters. We have this year added more than $850m to our charter backlog and will continue to explore new opportunities going forward”.

Last month, SFL signed long-term charters with an Asia-based transportation firm for two ultra-modern dual-fuel car carriers.

These vessels can operate on liquified natural gas (LNG).

In a statement, SFL said: “The vessels are sister vessels of the two 7,000 CEU pure car and truck carriers under construction, chartered to the Volkswagen Group.”

These ships are expected to be delivered during Q1 or Q2 of 2024.

With an aggregate construction cost of nearly $155m, the vessels will be chartered for around ten years, adding more than $200m to the company’s contracted charter backlog.

The company’s fleet of ships includes container vessels, bulkers and tankers, as well as offshore drilling rigs.