SFL agrees to sell seven tankers to Trafigura
SFL Corporation has agreed to sell seven tankers currently chartered to Trafigura, with vessel deliveries scheduled between the fourth quarter of 2026 and the first quarter of 2027.
The transaction covers four LR2 product tankers built in 2014 and 2015, alongside three Suezmax tankers built in 2019. SFL acquired the vessels in 2021 and 2022, subsequently employing them under time charter agreements with Trafigura.
Under the agreed sale arrangements, Trafigura will acquire the vessels, while the existing time charters will terminate upon delivery of each tanker to the buyer. The transaction has been agreed, but the vessel transfers have not yet been completed.
SFL expects substantial proceeds from tanker sales
SFL estimates that the transaction will generate approximately $275 million in aggregate net cash proceeds after accounting for the contractual profit-sharing arrangements and repayment of associated debt.
The company has not disclosed the individual vessel sale prices, which remain confidential. Consequently, the estimated net cash proceeds should not be interpreted as the total transaction consideration.
SFL also expects to recognise an aggregate book gain of approximately $175 million from the disposals. Both the projected net proceeds and accounting gain remain estimates pending completion of the transactions.
The existing charter agreements include a profit-sharing mechanism applicable in the event of a profitable vessel sale. This arrangement will be reflected in the financial settlement associated with the transaction.
Vessel deliveries scheduled through early 2027
The seven tankers are expected to be transferred to Trafigura during the fourth quarter of 2026 and the first quarter of 2027. Their existing charter agreements will end as each vessel is delivered, rather than terminating immediately upon announcement of the sale.
Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, said the company intends to use the proceeds for further investment.
“We expect to reinvest the proceeds in new accretive investments that will build our long-term distribution capacity,” Hjertaker said.
The transaction follows several years of vessel ownership and charter employment under SFL, with the company having acquired the tankers between 2021 and 2022.
Completion of the agreed sales will result in the transfer of four LR2 product tankers and three Suezmax tankers to Trafigura, alongside the termination of their respective time charter arrangements.
