SFL - Newbuild order of five LNG dual-fuel 16,800 TEU container vessels in combination with long term charters
03 July 2024 - 7:51PM
SFL - Newbuild order of five LNG dual-fuel 16,800 TEU container
vessels in combination with long term charters
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the
“Company”) today announced that it has agreed to build five 16,800
TEU container vessels with scheduled delivery in 2028 at an
aggregate construction cost of approximately $1 billion. The
vessels will have LNG dual-fuel propulsion and the latest features
in fuel efficiency and cargo intake optimization.
Concurrently, SFL has agreed minimum 10-year
time charters to a leading liner company from delivery, adding
approximately $1.2 billion to our charter backlog. There will be an
option to extend the charters for another two years, and purchase
options at the end of year 10 and 12, including a profit share
feature.
Ole B. Hjertaker, CEO of SFL Management AS, said
in a comment: «This marks another accretive milestone investment
for SFL and will add five large container vessels to our fleet.
With these vessels delivered, we will have 11 LNG dual-fuel
vessels, and it demonstrates our commitment to continue expanding
our investment focus to assets with a lower carbon footprint whilst
ensuring significant visibility through 10-year firm charters to an
investment grade counterparty.
With the acquisitions and charter extensions
announced so far this year, we have added approximately $1.75
billion to our fixed rate charter backlog.”
July 3, 2024
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 55Sander Borgli, Vice President - IR, SFL Management
AS +47 23 11 40 73Media Contact:Ole B. Hjertaker,
Chief Executive Officer, SFL Management AS+47 23 11 40 11
About SFL
SFL has a unique track record in the maritime
industry and has paid dividends every quarter since its initial
listing on the New York Stock Exchange in 2004. The Company’s fleet
of vessels is comprised of tanker vessels, bulkers, container
vessels, car carriers and offshore drilling rigs. SFL’s long term
distribution capacity is supported by a portfolio of long term
charters and significant growth in the asset base over time. More
information can be found on the Company's website:
www.sflcorp.com
Cautionary Statement Regarding Forward
Looking Statements
This press release may contain forward looking
statements. These statements are based upon various assumptions,
many of which are based, in turn, upon further assumptions,
including SFL management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although SFL believes that these
assumptions were reasonable when made, because assumptions are
inherently subject to significant uncertainties and contingencies
which are difficult or impossible to predict and are beyond its
control, SFL cannot give assurance that it will achieve or
accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view,
could cause actual results to differ materially from those
discussed in the forward looking statements include the strength of
world economies, fluctuations in currencies and interest rates,
general market conditions in the seaborne transportation industry,
which is cyclical and volatile, including fluctuations in charter
hire rates and vessel values, changes in demand in the markets in
which the Company operates, including shifts in consumer demand
from oil towards other energy sources or changes to trade patterns
for refined oil products, changes in market demand in countries
which import commodities and finished goods and changes in the
amount and location of the production of those commodities and
finished goods, technological innovation in the sectors in which we
operate and quality and efficiency requirements from customers,
increased inspection procedures and more restrictive import and
export controls, changes in the Company’s operating expenses,
including bunker prices, dry-docking and insurance costs,
performance of the Company’s charterers and other counterparties
with whom the Company deals, the impact of any restructuring of the
counterparties with whom the Company deals, and timely delivery of
vessels under construction within the contracted price,
governmental laws and regulations, including environmental
regulations, that add to our costs or the costs of our customers,
potential liability from pending or future litigation, potential
disruption of shipping routes due to accidents, political
instability, terrorist attacks, piracy or international
hostilities, the length and severity of the ongoing coronavirus
outbreak and governmental responses thereto and the impact on the
demand for commercial seaborne transportation and the condition of
the financial markets, and other important factors described from
time to time in the reports filed by the Company with the United
States Securities and Exchange Commission. SFL disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
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