SFL Corporation Ltd. has recently announced that it has reached an agreement with Trafigura, a global leader in the commodities industry, to sell four LR2 and three Suezmax vessels. These vessels, built in 2014, 2015, and 2019, are currently under time charter contracts with Trafigura.
Details Regarding the Vessels and Agreements
The LR2 vessels are specifically designed for the transportation of oil products and have capacities that allow them to carry various types of cargo. The Suezmax vessels, also built in 2019, are suitable for transporting crude oil and petrochemical products due to their high loading capacity. Collectively, these vessels have helped SFL Corporation generate significant cash flow over the past five years.
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Financial Dimensions and Implications of the Deal
The sale price of each vessel has remained confidential, but it is estimated that after profit sharing and repayment of related debts, SFL Corporation's net income from this transaction will reach approximately $275 million. The company also expects to achieve a net profit of $175 million from this deal. This sale reflects the intrinsic value of SFL Corporation's operational platform, and the company is looking to reinvest these resources into new and profitable projects.
Ole B. Hjertaker, CEO of SFL Management AS, stated: "This transaction reflects the intrinsic value of our operational platform. We have generated strong cash flow from these vessels over the past five years while maintaining a significant portion of the asset value increase. We expect to utilize the proceeds from this sale in new and profitable investments to enhance our long-term distribution capacity."
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