Bermuda-incorporated SFL Corporation (SFL) is engaged in a ship selling transaction that can net the company $275 million in cash proceeds, the board of directors said today.

The New York Stock Exchange-listed maritime infrastructure company operates a diversified fleet of maritime assets employed on long-term contracts.

Up for sale are 2014- and 2015-built LR2 product tankers and three 2019-built Suezmax tankers, which are on time charters to Trafigura, the global leader in the commodities industry.

The vessels were acquired in 2021 and 2022, and the charter agreements include a profit share mechanism in the event of a profitable sale.

The company has now agreed to sell the vessels to Trafigura with delivery in the fourth quarter of 2026 and the first quarter of 2027. The existing charters will terminate when the vessels are delivered to the buyer.

A company statement indicated that while the sales price per vessel is confidential, after profit share and repayment of associated debt, the net cash proceeds to SFL is estimated at approximately $275 million in aggregate.

The company currently estimates an aggregate book gain of approximately $175 million from the transaction.

Ole B Hjertaker, chief executive officer of SFL Management AS, said: “This transaction demonstrates the intrinsic value of our operating platform. We have enjoyed strong cash flows from the vessels over the last five years, and in addition retained a significant share of the asset value upside, which is crystallising now.

“We expect to reinvest the proceeds in new accretive investments that will build our long-term distribution capacity.”

SFL 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 also has 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.