Norwegian shipping magnate John Fredriksen is investing $365 million in the fleet of his shipping company, SFL. The investment covers two new container ships and an ammonia carrier.
SFL Corporation, which is listed on the New York Stock Exchange, has announced the acquisition of two new container ships, each with a capacity of 8,800 TEU, as well as a Very Large Ammonia Carrier (VLAC).
The container ships are scheduled for delivery in 2027, whilst the ammonia carrier, with a capacity of 93,000 cbm and dual-fuel propulsion, is due to follow a year later. No details have been disclosed about where the vessels will be built or from whom SFL is acquiring them. However, the company has revealed the costs: according to SFL, the total acquisition price amounts to approximately $365 million.
For the two container ships, SFL has entered into time charter agreements with a “leading liner shipping company” for a minimum period of eight years, commencing upon delivery. The agreements include extension options for up to four additional years, purchase options after the eighth, tenth and twelfth years, and a profit-sharing arrangement.
The VLAC will be chartered to a “world-leading company in the commodities sector” for at least five years, with an option to extend the agreement by up to two years. The charterer also has the option to initiate the sale of the vessel during the final two years of the fixed charter period, subject to a profit-sharing arrangement in favour of SFL.
SFL’s fleet, which includes vessels chartered to companies such as Hapag-Lloyd, comprises tankers, bulk carriers, container ships, car carriers and offshore drilling rigs.
Including the acquisitions and new charter agreements announced so far this year, SFL has increased its backlog of fixed charter revenue by more than $1.6 billion. The latest charter agreements alone will add at least approximately $333 million in fixed charter revenue, with further potential upside if extension options are exercised.
Just a few days ago, SFL also announced an order for two ammonia carriers.
Ole B. Hjertaker, CEO of SFL Management AS, commented: “We are delighted to continue expanding our asset portfolio by combining newbuild vessels due for imminent delivery with charter agreements with existing, first-class contractual partners.”
