In brief

• SFL Corporation is buying two 8,800 TEU container vessels and one liquefied ammonia gas carrier (gas tanker).
• The total cost of the transaction is approximately $365 million, and deliveries are scheduled for 2027 and 2028.
• The charters are expected to add at least approximately $333 million to the company's charter backlog.

Acquisition of three vessels

SFL Corporation reported that it has entered into agreements to acquire two 8,800 TEU container vessels and one Very Large Ammonia Carrier (VLAC) with a capacity of 93,000 cubic meters. (SFL - Newbuild agreements and long-term charters of two 8,800 TEU Container Vessels and one Very Large Ammonia Carrier | The Manila Times – manilatimes.net) The total cost of the transaction will be approximately $365 million. (SFL acquires three vessels for $365 million with long-term charters – Investing.com) Delivery of the container vessels is planned for 2027, and of the gas carrier for 2028.

Charter terms

Both container vessels will be chartered to a leading liner operator for at least eight years from delivery. The agreements provide for an option to extend by another four years and purchase options after the eighth, tenth and twelfth year. A profit-sharing mechanism is also provided for.

The VLAC has been chartered to a commodities company for a minimum of five years from delivery. This period can be extended by a maximum of two years. In the last two years of the firm period, the charterer has the right to arrange a sale of the vessel, and the profit from such a transaction will be shared between the charterer and SFL.

Impact on the charter backlog

The new charters will add at least approximately $333 million to the company's firm fixed-rate charter backlog. (SFL Corporation Agrees to Acquire Two Container Vessels and One VLAC, Adds $333 Million to Charter Backlog | Quiver Quantitative – quiverquant.com) The amount may increase if extension options are exercised. CEO Ole B. Hjertaker assessed that the transactions strengthen SFL's portfolio.