SFL orders two more dual-fuel car carriers

Bermuda-based ship owning and chartering company SFL Corporation Ltd. has ordered two additional dual-fuel car carriers.

The company also entered into long-term charters with an unnamed Asia-based transportation company for the two newbuilds which are designed to use liquified natural gas (LNG).

As explained, the vessels are sister ships of the two 7,000 CEU pure car and truck carriers under construction, chartered to the Volkswagen Group, and scheduled delivery from the shipyard is in Q1-Q2 of 2024.

The aggregate construction cost will be approximately $155 million, and the charter period will be ten years from the delivery of the vessels, adding more than $200 million to SFL’s contracted charter backlog.

“This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty,” Ole B. Hjertaker, CEO of SFL Management AS, said.

“Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cash flow and building our long-term distribution capacity.”

Two weeks ago, SFL acquired two 14,000 TEU containerships on charter to Evergreen.

Earlier this year, the company also reached an agreement to buy two 6,800 TEU containerships in combination with six-year charters to Danish shipping major Maersk.

The new shipbuilding order announcement coincided with the release of the company’s preliminary Q2 2021 results showing that SFL delivered a net profit of $19.5 million, compared to $31.5 million seen in the first quarter of this year.

Total operating revenues rose to $116.8 million in Q2 2021 from $109.1 million reported in Q1 2021.