SFL Sells its Oldest VLCC

Bermuda-based SFL Corporation has sold and delivered Front Hakata, a 2002-built very large crude carrier (VLCC).

The international ship owning and chartering company said that the net cash proceeds to SFL was approximately $30 million after a compensation to Frontline Ltd. for the early termination of the charter.

SFL Corp, formerly Ship Finance International, does not expect a material book effect from the transaction.

The Front Hakata was the last vessel in the fleet remaining from the Company’s inception in 2004 and divesting of older vessels is part of SFL’s strategy to continuously renew and diversify its fleet.

Following this transaction, the company has two VLCCs remaining on charter to a subsidiary of Frontline Ltd, it said.

SFL's fleet of more than 90 vessels is split between tankers, bulkers, container vessels and offshore assets, and SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time.