SFL opts for two new feeders
The SFL Corporation, an owner and charterer of cargo ships, is acquiring two new eco-design feeder container vessels in combination with long term time charters to a major European liner company. The company expects to take delivery of the vessels from the shipyard in Q3/ and Q4/2022.
The time charters will run for a minimum period of seven years, with purchase options at the end of year six and seven. The fixed rate charter backlog will increase by approximately USD 120 million, with an ebitda contribution from the vessels estimated at approximately USD 13 million per year.
Ole B. Hjertaker, CEO of SFL Management AS, commented: “We find the deal attractive given the investment grade counterpart, immediate cash flow and with charter terms enabling us to quickly reduce asset exposure over the firm period. So far this year, we have added approximately USD 1.4 billion to the fixed rate charter backlog.” (sh)