Acquisition of two newbuild feeder container vessels with long term charters
SFL Corporation Ltd. (NYSE: SFL) (SFL or the Company) announced today that it has agreed to acquire two new eco-design feeder container vessels in combination with long term time charters to a leading European liner company.
The Company expects to take delivery of the vessels from the shipyard in Q3 and Q4 2022. The time charters will run for a period of minimum seven years, with purchase options at the end of year six and seven, including a profit share feature. The fixed rate charter backlog will increase by approximately $120 million, with an EBITDA contribution from the vessels estimated to approximately $13 million per year.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: «The transaction demonstrates our ability to expand our fleet and existing customer relationships through repeat transactions with swift execution. We find the deal attractive given the investment grade counterpart, immediate cash flow and with charter terms enabling us to quickly reduce asset exposure over the firm period. So far this year we have added approximately $1.4 billion to the fixed rate charter backlog».
September 2, 2022
The Board of DirectorsSFL Corporation Ltd.Hamilton, Bermuda
Investor and Analyst Contacts:Aksel Olesen, Chief Financial Officer, SFL Management AS+47 23 11 40 36André Reppen, Chief Treasurer & Senior Vice President, SFL Management AS+47 23 11 40 55Marius Furuly, Vice President - IR, SFL Management AS +47 23 11 40 16Media Contact:Ole B. Hjertaker....