SFL adds $365m in new vessels and charter deals
SFL Corporation has agreed to acquire two new container vessels and a large ammonia carrier in deals worth about $365 million.
The Bermudian-headquartered company said the vessels are due for delivery in 2027 and 2028 and will add at least $333 million to its fixed-rate charter backlog.
The acquisitions include two 8,800 twenty-foot equivalent unit container vessels, due in 2027. SFL has secured minimum eight-year charter agreements for the ships with a leading liner company.
The charter agreements can be extended by up to four years. The customer will also have options to buy the vessels after eight, ten and 12 years, with SFL sharing in any profit.
SFL has also agreed to buy a 93,000-cubic-metre dual-fuel very large ammonia carrier, scheduled for delivery in 2028.
The carrier has been placed on a minimum five-year charter with a global commodities company. That agreement can be extended by up to two years.
The agreement is SFL’s second move into the ammonia-carrier market this month. Earlier in October, the shipowner announced orders for two similar 93,000-cubic-metre vessels, also due in 2028.
The latest purchase would bring its ammonia-carrier newbuilding programme to three ships as the industry prepares for possible growth in ammonia trade, driven by fertiliser demand and interest in lower-carbon fuels.
Ole B. Hjertaker, chief executive of SFL Management AS, said: “We are pleased to continue building the asset portfolio, combining newbuilds with early delivery and charters to existing high-quality counterparties.”
He added that SFL’s acquisitions and new charter agreements announced so far this year had added more than $1.6 billion to its fixed-rate charter backlog.
