SFL - Acquisition of two LNG dual-fuel chemical carriers in combination with long term employment
23 April 2024 - 8:29AM
SFL - Acquisition of two LNG dual-fuel chemical carriers in
combination with long term employment
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) today
announced that it has agreed to acquire two LNG dual-fuel 33,000
dwt chemical carriers. The vessels are built in 2022/2023 and
fitted with stainless steel cargo tanks, and the aggregate purchase
price is approximately $114 million. SFL has arranged long term
employment for the vessels with affiliates of Stolt Tankers, a
subsidiary of the world-leading chemical logistics company
Stolt-Nielsen Limited (“Stolt-Nielsen”).
The Company expects to take delivery of the
vessels between June and August this year and both vessels will be
employed for a minimum of eight years. One vessel will be on a
fixed rate time-charter and one vessel will be employed in a pool
with similar-sized vessels. The fixed rate vessel has extension
options of up to three years, in addition to purchase options after
year five and eight, subject to a profit share mechanism with
SFL.
Ole B. Hjertaker, CEO of SFL Management AS, said
in a comment: «The announcement marks another accretive investment
for the Company and will add two sophisticated chemical carriers to
our fleet. With these vessels, we will have six LNG dual-fuel
vessels in our fleet, and the transaction demonstrates our ability
to expand our portfolio of maritime assets with vessels suitable
for long term charters to industry leading companies.
We are excited to build a new relationship with
Stolt-Nielsen who has a market leading position in the logistics
for sophisticated chemicals. The market dynamics for
stainless-steel chemical tankers are also very favorable now, with
steady underlying growth in demand, ageing fleet and a limited
orderbook. The combination of fixed-rate charter and pool earnings
will therefore give us the opportunity to participate in a strong
market, while also providing increased charter backlog.”
Commenting on the transaction, Udo Lange, Chief
Executive Officer, Stolt-Nielsen said “I’m pleased to announce our
new partnership with SFL Corporation on two modern chemical
tankers. As well as securing attractively priced on-the-water
tonnage in a firm chemical tanker market, these modern, dual-fuel
ships will lower the age profile and carbon intensity of our fleet
while offering more flexibility in our core 33,000 deadweight
segment. This transaction also demonstrates our commitment to
asset-light fleet replacement with best-in-class partners like SFL
Corporation, NYK Line, and CMB Group to enhance profitability and
reduce our balance sheet intensity. As a leading liquid logistics
provider, it is critical Stolt-Nielsen balances capital allocation
across all our businesses to drive further improvements in our
industry leading customer service offering and reliability.”
April 23, 2024
The Board of DirectorsSFL Corporation
Ltd.Hamilton, Bermuda
Investor and Analyst
Contacts:Aksel Olesen, Chief Financial Officer, SFL
Management AS+47 23 11 40 36André Reppen, Chief Treasurer &
Senior Vice President, SFL Management AS+47 23 11 40 55Sander
Borgli, Vice President - IR, SFL Management AS +47 23 11 40
73Media Contact:Ole B. Hjertaker, Chief Executive
Officer, SFL Management AS+47 23 11 40 11
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 comprised of tanker vessels, bulkers, container
vessels, car carriers 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
Cautionary Statement Regarding Forward
Looking Statements
This press release may contain forward looking
statements. These statements are based upon various assumptions,
many of which are based, in turn, upon further assumptions,
including SFL management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although SFL believes that these
assumptions were reasonable when made, because assumptions are
inherently subject to significant uncertainties and contingencies
which are difficult or impossible to predict and are beyond its
control, SFL cannot give assurance that it will achieve or
accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view,
could cause actual results to differ materially from those
discussed in the forward looking statements include the strength of
world economies, fluctuations in currencies and interest rates,
general market conditions in the seaborne transportation industry,
which is cyclical and volatile, including fluctuations in charter
hire rates and vessel values, changes in demand in the markets in
which the Company operates, including shifts in consumer demand
from oil towards other energy sources or changes to trade patterns
for refined oil products, changes in market demand in countries
which import commodities and finished goods and changes in the
amount and location of the production of those commodities and
finished goods, technological innovation in the sectors in which we
operate and quality and efficiency requirements from customers,
increased inspection procedures and more restrictive import and
export controls, changes in the Company’s operating expenses,
including bunker prices, dry-docking and insurance costs,
performance of the Company’s charterers and other counterparties
with whom the Company deals, the impact of any restructuring of the
counterparties with whom the Company deals, and timely delivery of
vessels under construction within the contracted price,
governmental laws and regulations, including environmental
regulations, that add to our costs or the costs of our customers,
potential liability from pending or future litigation, potential
disruption of shipping routes due to accidents, political
instability, terrorist attacks, piracy or international
hostilities, the length and severity of the ongoing coronavirus
outbreak and governmental responses thereto and the impact on the
demand for commercial seaborne transportation and the condition of
the financial markets, and other important factors described from
time to time in the reports filed by the Company with the United
States Securities and Exchange Commission. SFL disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
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