Sale of two old VLCCs
This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.
SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) Announces It Has Agreed to Sell VLCCs Built in 2004 Forward Energy and forward force to an unrelated third party. Proceeds from the sale to SFL are estimated to be approximately $70 million, including compensation from Frontline Ltd. for the early termination of the existing charter. Delivery of the vessels to the buyer is expected to occur early in the second quarter, and an accounting gain of approximately $2 million is estimated as a result of the sale.
Forward Energy and forward force are the last two remaining vessels of the Frontline fleet acquired in 2004 and 2005. The disposal of older vessels is part of SFL’s strategy to continuously renew and diversify its fleet, and the net cash proceeds are expected to be reinvested into new assets. As a result of this transaction, the Company will no longer have vessels on charter for Frontline Ltd.
April 1, 2022
Board of directors
SFL Corporation Ltd.
Investor and analyst contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
André Reppen, Chief Treasurer and First Vice President, SFL Management AS
+47 23 11 40 55
Marius Furuly, Vice President – IR, SFL Management AS
+47 23 11 40 16
Ole B. Hjertaker, Managing Director, SFL Management AS
+47 23 11 40 11
SFL has a unique experience in the maritime industry and has paid dividends every quarter since its first listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is divided between container ships, bulk carriers, tankers and platforms. forms of offshore drilling. SFL’s long-term distribution capability 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
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking statements. These statements are based on various assumptions, many of which are based, in turn, on other assumptions, including SFL management’s review 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 they were formulated, given that these assumptions are inherently subject to significant uncertainties and risks which are difficult or impossible to predict and which are beyond its control, SFL cannot guarantee that it will or will realize those expectations, beliefs or intentions. .
Important factors that the Company believes could cause actual results to differ materially from those referred to in the forward-looking statements include the strength of global economies, currency and interest rate fluctuations , general market conditions in the shipping industry, which is cyclical and volatile, including fluctuations in rental rates and vessel values, changes in demand in the markets in which the Company operates, including including shifts in consumer demand from oil to other energy sources or changes in business patterns for refined petroleum products, changes in market demand in countries that import raw materials and finished products and changes in the quantity and location of production of these raw materials and finished products, technological innovation in sec operators in which we operate and customer demands for quality and efficiency, increased inspection procedures and import and export controls, changes in the Company’s operations operating expenses, including bunker prices, dry-docking and insurance costs, the performance of the Company’s charterers and other counterparties with which the Company deals, the impact of any restructuring of counterparties with which the Company deals, including the bankruptcy proceedings relating to Seadrill and certain of its subsidiaries and the timely delivery of vessels under construction within the limits of the contract price, governmental laws and regulations, including environmental regulations, which are in addition to our costs or the costs of our customers, potential liability for pending or future litigation, potential disruption of shipping routes due to accidents, ins political stability, terrorist attacks, piracy or international hostilities, the duration and severity of the ongoing coronavirus outbreak and governmental responses thereto and the impact on shipping demand business and financial markets, and other important factors described from time to time in the Company’s filings 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.