Hamilton, Bermuda - September 14, 2021
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) today announced that it has agreed to sell its seven handysize dry bulk vessels to an Asian based buyer for an aggregate price of approximately $100 million.
Delivery of the vessels is expected to take place before year end, and net cash proceeds are estimated to be more than $50 million after repayment of associated debt. The Company expects to record aggregate book gains of more than $40 million from the sale of the vessels.
The vessels have cargo capacity between 32-34,000 dwt and have been employed in the spot market the last 5 years, after redelivery from their initial charters.
With limited long term chartering opportunities for small dry bulk vessels, the intention has been to trade the vessels in the spot market until the markets improved. The sale will not have an impact on our charter backlog, and the net proceeds are expected to be reinvested in new assets.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “Our primary business strategy is to own and charter out vessels long term to strong counterparties, and we have added more than $850 million to our charter backlog in 2021. The seven small bulkers were redelivered from the initial charters when the market was soft, and instead of divesting the vessels at the time we have waited for improved market conditions. Asset values in the segment are up 75% this year, and we believe this is a good time for a strategic sale of these vessels”.
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 split between container vessels, bulkers, tankers 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