On October 7, SFL announced via its official website that it had agreed to sell seven tankers, comprising two vessel types to the global commodities trader Trafigura. Delivery is scheduled between the fourth quarter of 2026 and the first quarter of 2027, at which point the existing charter agreements will terminate.
SFL acquired the aforementioned vessels between 2021 and 2022. The fleet consists of four LR2 product tankers built in 2014 and 2015, and three Suezmax-class tankers built in 2019.
SFL did not disclose the specific sale price of the vessels, but the company stated that the transaction is expected to generate approximately $275 million in net cash proceeds and approximately $175 million in book gains.
Representatives from SFL stated: “…Over the past five years, this fleet has generated strong cash flow for the company; at the same time, we have retained a significant portion of the gains from asset appreciation, which are now being realized. The company plans to reinvest the proceeds into new, value-enhancing projects to strengthen its long-term dividend-paying capacity.”
Strong market demand for second-hand oil tankers has driven up their prices. According to data from Clarksons, the market valuation of a 10-year-old Aframax tanker—comparable in tonnage to an LR2 tanker—stood at $72.5 million last week, while a Suezmax tanker of the same age could fetch $110 million.