SFL Corporation Acquires Two LNG Dual-Fuel Chemical Carriers for $114 Million

SFL Corporation acquires two LNG dual-fuel chemical carriers for $114M, expanding its eco-friendly fleet and partnering with Stolt Tankers, showcasing its ability to source accretive growth opportunities.

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Bijay Laxmi
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SFL Corporation Acquires Two LNG Dual-Fuel Chemical Carriers for $114 Million

SFL Corporation Acquires Two LNG Dual-Fuel Chemical Carriers for $114 Million

SFL Corporation Ltd, a leading international ship-owning and chartering company, has announced the acquisition of two LNG dual-fuel 33,000 DWT chemical carriers for a total of $114 million. The vessels, built in 2022 and 2023, are fitted with stainless steel cargo tanks and are expected to be delivered between June and August 2024.

SFL Corporation has arranged long-term employment for the vessels with affiliates of Stolt Tankers, a subsidiary of chemical logistics company Stolt-Nielsen Limited. One vessel will be secured under a fixed-rate time-charter agreement, while the other will be employed in a pool with similar-sized vessels. The fixed-rate vessel has extension options of up to three years and purchase options after years five and eight, subject to a profit share mechanism with SFL.

The acquisition expands SFL Corporation's fleet of LNG dual-fuel vessels and lowers the age profile and carbon intensity of their fleet, while offering more flexibility in their core 33,000 deadweight segment. SFL Management AS is excited about the new relationship with Stolt-Nielsen, highlighting the favorable market dynamics for stainless-steel chemical tankers and the combined opportunity for fixed-rate charter and pool earnings to participate in a strong market and provide cash flow support.

Why this matters: The acquisition demonstrates SFL Corporation's ability to expand its portfolio of maritime assets with vessels suitable for long-term charters to industry-leading companies. The transaction also reflects the growing trend towards more eco-friendly and fuel-efficient vessels in the shipping industry.

Ole B. Hjertaker, CEO of SFL Management AS, commented on the acquisition, stating, "We are pleased to further expand our portfolio of modern fuel-efficient vessels with long-term charters to strong counterparties. The transaction demonstrates our ability to source accretive growth opportunities and diversify our portfolio whilst expanding our relationship with one of the leading players in the chemical tanker market." The acquisition is seen as an accretive investment for SFL Corporation, adding two sophisticated chemical carriers to the company's fleet, which will now include six LNG dual-fuel vessels.

Key Takeaways

  • SFL acquires 2 LNG dual-fuel chemical carriers for $114M, to be delivered in 2024.
  • Vessels secured under long-term charters with Stolt Tankers, a chemical logistics company.
  • Acquisition expands SFL's LNG dual-fuel fleet, lowers fleet age and carbon intensity.
  • Transaction reflects industry trend towards more eco-friendly and fuel-efficient vessels.
  • SFL CEO sees the acquisition as an accretive growth opportunity for the company.