SFL Corporation Sells Seven Tankers to Trafigura for $275 Million

SFL Corporation Ltd. announced the sale of seven tankers to Trafigura for estimated net cash proceeds of approximately $275 million after debt repayment and profit sharing. The transaction includes four LR2 product tankers built in 2014 and 2015, and three Suezmax tankers built in 2019. SFL acquired these vessels in 2021 and 2022, and they are currently on time charters to Trafigura that will terminate upon delivery.

Deliveries are scheduled for the fourth quarter of 2026 and the first quarter of 2027. SFL expects an aggregate book gain of approximately $175 million from the deal. The company intends to reinvest the proceeds into new investments to build long-term distribution capacity.

Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, stated that the company enjoyed strong cash flows from the vessels over the last five years and retained a significant share of the asset value upside. He added that the transaction demonstrates the intrinsic value of the company's operating platform.