SFL to purchase three eco-friendly product tankers for $230 million

Bermuda-based ship owner and charterer SFL Corporation has decided to acquire three new LR2 product tankers for a purchase price of approximately $230 million.

Illustration; Source: Pixabay under CC0 Creative Commons license

As disclosed, the vessels are currently under construction in China. The ships will feature latest eco-friendly characteristics, according to SFL.

The sellers are affiliates of the company’s largest shareholder Hemen Holding.

The company expects to take delivery of the ships between the second and fourth quarter of this year, and the charter period will be a minimum of five years plus up to three years of extension options. 

“We are pleased to do another milestone transaction in the tanker market at what we believe is an attractive stage of the market cycle. These product tankers are the most desired vessels for carrying clean petroleum products over long sea distances between the largest refineries and consumer centers of the world and will be in high demand to meet the future energy needs of the world,” Ole B. Hjertaker, CEO of SFL Management AS stated.

The charterer will have options to purchase the vessels after year five and eight, subject to a profit share mechanism with SFL, according to the firm.

In September last year, SFL welcomed its first liquified natural gas (LNG) dual-fuel pure car and truck carrier (PCTC) from Guangzhou Shipbuilding International Co. (GSI). Meanwhile, the shipowner also took delivery of the third vessel, 7,000 CEU Odin Highway.

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The company’s fleet of vessels is comprised of 13 tanker vessels, 15 bulkers, 36 container vessels, seven car carriers and two offshore drilling rigs.