SFL Corp. Buys Aframax Tanker Quartet in A $160M Deal


SFL has acquired the ships from Frontline affiliate Hemen Holdings for $160m, reports Lloyd’s List.

Aframax charters worth $160m

SFL Corporation has swooped for four modern aframax LR2 product tankers, paying John Fredriksen’s Frontline $160m for the quartet which come with long-term charters to Trafigura attached. The scrubber-fitted ships were all built in 2014 and 2015.

The charter period of the vessels will be for a minimum of five years with extension options thereafter, adding approximately $160m to SFL’s fixed-rate backlog.

The charterer will also have the option to develop a sale of the vessels during the charter period, subject to a profit share mechanism with SFL.

Foothold in tanker market

Ole Hjertaker, CEO of SFL Management, commented: “We are very pleased to further expand our presence in the tanker market and the transaction demonstrates our ability to develop opportunities and achieve sustained growth through repeat transactions with our customers. We have this year added more than $1bn to our charter backlog and will continue to explore new opportunities going forward”.

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Source: Lloyd’s List


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