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SFL Monetises Older Suezmax Tankers in Portfolio Rebalance
John Fredriksen-backed SFL Corporation has moved to monetise some of the oldest assets in its suezmax tanker fleet, agreeing to sell two 2015-built vessels as part of a broader portfolio optimisation strategy in the global sea freight and tanker market.
The US- and Oslo-listed owner confirmed it will divest the 160,000 dwt SFL Thelon and SFL Ottawa, both currently trading on charter to Koch Industries. The transaction underlines SFL’s focus on crystallising asset value while reshaping its exposure to a tightening tanker market.
Sale Values and Financial Impact
SFL said the gross sale price is expected to be approximately $57m per vessel. After settling outstanding debt and paying a termination fee linked to a pre-agreed profit-sharing structure, the company estimates net proceeds of around $26m per ship.
The tankers are scheduled to be delivered to their new owners in the fourth quarter of this year and the first quarter of next year, respectively. SFL expects the deal to result in a combined book gain of roughly $23m, highlighting the strength of secondhand values for modern tanker tonnage.
Charter Adjustments and Fleet Retention
Alongside the disposals, SFL and the same charterer have mutually agreed to terminate existing charters on the 2020-built suezmaxes SFL Albany and SFL Fraser, again involving a termination fee under the existing profit-sharing agreement.
Unlike the older units being sold, these two newer vessels will remain in SFL’s fleet. Built in South Korea, both ships feature eco-designs and scrubber installations, positioning them well for trading flexibility in the spot sea freight market. SFL said the vessels will initially operate spot before potentially being fixed on longer-term employment when market conditions become more favourable.
Capital Recycling Strategy
SFL chief executive Ole Hjertaker said the transaction demonstrates the embedded value within the company’s fleet, allowing it to lock in profits on 10-year-old suezmaxes just three years after acquiring them.
He added that a portion of the proceeds will be reinvested into younger, more fuel-efficient tonnage, better aligned with today’s stronger tanker fundamentals, where spot and period charter rates are outperforming legacy long-term contracts.
Suezmax Exposure Going Forward
Following the transaction, SFL’s suezmax fleet will stand at five vessels, all built between 2019 and 2020, providing a younger average age profile. The company originally acquired the Bohai-built suezmaxes from Ciner Shipping in September 2022 for $45m per vessel, with charters attached.
The reshuffle reflects a wider trend among tanker owners seeking to optimise fleet age, emissions performance and earnings leverage as sea freight demand for crude and refined products remains supported by long-haul trade flows and shifting energy supply chains.
