Hamilton, Bermuda - September 2, 2022
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announced today that it has agreed to acquire two new eco-design feeder container vessels in combination with long term time charters to a leading European liner company.
The Company expects to take delivery of the vessels from the shipyard in Q3 and Q4 2022. The time charters will run for a period of minimum seven years, with purchase options at the end of year six and seven, including a profit share feature.
The fixed rate charter backlog will increase by approximately $120 million, with an EBITDA contribution from the vessels estimated to approximately $13 million per year.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: «The transaction demonstrates our ability to expand our fleet and existing customer relationships through repeat transactions with swift execution. We find the deal attractive given the investment grade counterpart, immediate cash flow and with charter terms enabling us to quickly reduce asset exposure over the firm period.
So far this year we have added approximately $1.4 billion to the fixed rate charter backlog».
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 comprised of container vessels, car carriers, tanker vessels, bulkers 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