1. SFL sells two Suezmax tankers for approximately $57 million each. 2. Net proceeds of $26 million per vessel estimated after debt repayment. 3. Transaction expected to yield a $23 million book gain for SFL. 4. Vessels will initially enter spot market, potential for future long-term terms. 5. Revenue reinvestment aimed at acquiring more fuel-efficient vessels.
FAQ
Why Bullish?
The sale represents significant profit and positive cash flow, hinting at robust asset management. Historical cases show companies enhancing shareholder value through strategic asset sales, positively affecting stock prices.
How important is it?
The asset sales and reinvestments indicate strong strategic initiatives that could directly enhance company performance, thereby impacting stock prices positively.
Why Short Term?
Immediate gains from asset liquidation boost investor sentiment and potential stock appreciation. Short-term market reactions are often fast to reflect positive financial outcomes.
SFL Corporation Announces Sale of Suezmax Tankers
SFL Corporation Ltd. (NYSE: SFL) has announced a significant financial development on December 19, 2025. The maritime company is set to sell two 2015-built Suezmax tankers, SFL Thelon and SFL Ottawa, currently under charter to a trading house. This transaction is valued at approximately $57 million per vessel, with net proceeds anticipated to reach around $26 million after settling associated debt and termination fees.
Transaction Details
The expected delivery of these vessels is scheduled for the fourth and first quarters, respectively. Following the completion of this sale, SFL anticipates booking a total gain of approximately $23 million, which will be divided between the two vessels. In conjunction with this sale, SFL has agreed to mutually terminate charters for two additional 2020-built Suezmax tankers, SFL Albany and SFL Fraser, and will also incur a termination fee as per a pre-arranged profit-sharing agreement.
The remaining vessels are eco-designed, built in Korea, and equipped with scrubbers. Initially, SFL plans to utilize these vessels in the spot market, while longer-term employment opportunities will be considered as market conditions evolve.
CEO Commentary
Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, expressed his perspective on the transaction. He stated, “This transaction illustrates the embedded value in our fleet, where we can materialize a significant profit from the sale of two 10-year-old vessels just three years after their acquisition. In the meantime, we have enjoyed solid cash flows from the vessels.”
Hjertaker also highlighted that part of the proceeds from this transaction will be reinvested into younger, more fuel-efficient vessels. This strategic move is aligned with current market dynamics, where prevailing charter rates are substantially higher than existing fixed rates.
About SFL Corporation
SFL has established a remarkable reputation within the maritime industry, consistently paying dividends every quarter since its New York Stock Exchange listing in 2004. The company’s diverse fleet includes tankers, bulkers, container vessels, car carriers, and offshore drilling rigs. SFL's long-term distribution capacity rests on a robust portfolio of long-term charters and sustained growth in its asset base over time.
For more information, visit SFL’s official website: www.sflcorp.com.
Cautionary Statement
This announcement may contain forward-looking statements based on certain assumptions. While SFL believes these assumptions are reasonable, factors such as global economic conditions, currency fluctuations, and market volatility in the seaborne transportation sector could lead to actual results differing materially from those anticipated.
For more details on risk factors, investors and interested parties are encouraged to review SFL's reports filed with the United States Securities and Exchange Commission.