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SFL in $114m vessels purchase

Ole B. Hjertaker, CEO of SFL Management AS (File photograph)

Bermudian-based SFL Corporation Ltd, one of the world's largest ship-owning companies, has agreed to acquire two liquefied natural gas dual-fuel 33,000 dead weight ton chemical carriers for an aggregate purchase price of approximately $114 million.

The company said the vessels were built in 2022-23 and fitted with stainless steel cargo tanks.

SFL said it has arranged long-term employment for the vessels with affiliates of Stolt Tankers, a subsidiary of the chemical logistics company Stolt-Nielsen Ltd.

The company expects to take delivery of the vessels between June and August this year and both vessels will be employed for a minimum of eight years.

One will be on a fixed-rate time-charter and the other will be employed in a pool with similar-sized vessels.

The fixed-rate vessel has extension options of up to three years, in addition to purchase options after years five and eight, subject to a profit share mechanism with SFL.

Ole B. Hjertaker, CEO of SFL Management AS, said: “The announcement marks another accretive investment for the company and will add two sophisticated chemical carriers to our fleet.

“With these vessels, we will have six LNG dual-fuel vessels in our fleet, and the transaction demonstrates our ability to expand our portfolio of maritime assets with vessels suitable for long-term charters to industry-leading companies.”

He added: “We are excited to build a new relationship with Stolt-Nielsen, who has a market-leading position in the logistics for sophisticated chemicals.

“The market dynamics for stainless steel chemical tankers are also very favourable now, with steady underlying growth in demand, ageing fleet and a limited order book.

“The combination of fixed-rate charter and pool earnings will therefore give us the opportunity to participate in a strong market, while also providing increased charter backlog.”

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Published April 24, 2024 at 2:03 pm (Updated April 24, 2024 at 8:29 pm)

SFL in $114m vessels purchase

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