SFL Offloads Another VLCC Oldie

Bermuda-based shipowner Ship Finance International Limited has agreed to sell the 2002-built VLCC Front Falcon as part of its fleet renewal efforts.

Delivery to the unnamed new owner is expected later this quarter, and the net sales price will be approximately USD 30.7 million, SFL said.

The company added that it doesn’t expect a material book effect from the transaction.

Following the sale, SFL has three VLCCs remaining on charter to a subsidiary of Frontline Ltd.

In October this year, SFL sold another VLCC oldie, the 2001-built VLCC Front Ariake, for USD 20.7 million.

Three 2002-built VLCCs were sold in July to ADS Crude Carriers Ltd, a newly established company in which Ship Finance had acquired a 17 pct interest.

Offloading of older tonnage is aimed at making room for new fleet additions. Namely, over the past six months, Ship Finance took delivery of over 19 vessels with long-term charters, increasing its fixed charter backlog by nearly USD 600 million.