SFL - Acquisition of four LR2 product tankers in combination with long term charters

Hamilton, Bermuda - November 22, 2021

SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced today that it has agreed to acquire four modern Aframax LR2 product tankers for an aggregate purchase price of $160 million in combination with long term time charters to a subsidiary of Trafigura, a world-leading commodity trading and logistics company.

The vessels are built in 2014 and 2015 and have modern eco-design features including exhaust gas cleaning systems. The Company expects to take delivery of the vessels between December 2021 and February 2022.

The sellers are affiliates of Frontline Limited (“Frontline”) and the purchase price is in line with valuations by independent shipbrokers. Hemen Holdings Ltd., who owns approximately 20% of the Company’s issued and outstanding shares, is also a major shareholder in Frontline.

The charter period of the vessels will be for minimum five years with extension options thereafter, adding approximately $160 million to SFL’s fixed-rate backlog. The charterer will also have the option to develop a sale of the vessels during the charter period, subject to a profit share mechanism with SFL.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “We are very pleased to further expand our presence in the tanker market and the transaction demonstrates our ability to develop opportunities and achieve sustained growth through repeat transactions with our customers. We have this year added more than $1 billion to our charter backlog and will continue to explore new opportunities going forward”.

About 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 split between container vessels, bulkers, tankers 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.

More information can be found on the Company’s website: www.sflcorp.com

SFL Corporation Ltd. press release