SFL Sells Seven Handysize Bulk Carriers

Shipowner SFL Corporation on Tuesday announced it has sold seven handysize dry bulk vessels to an Asian-based buyer for an aggregate price of approximately $100 million.

The 32,000-34,000 dwt capacity ships, built between 2011 and 2013, have been employed in the spot market the last five years after redelivery from their initial charters. "With limited long term chartering opportunities for small dry bulk vessels, the intention has been to trade the vessels in the spot market until the markets improved," New York-listed SFL said.

Ole B. Hjertaker, CEO of SFL Management AS, said, "Our primary business strategy is to own and charter out vessels long term to strong counterparties, and we have added more than $850 million to our charter backlog in 2021. The seven small bulkers were redelivered from the initial charters when the market was soft, and instead of divesting the vessels at the time we have waited for improved market conditions. Asset values in the segment are up 75% this year, and we believe this is a good time for a strategic sale of these vessels."

The ships are scheduled to be handed over to their new owner before the end of this year

SFL said it expects to record more than $50 million in net cash proceeds after associated debt is repaid, with aggregate book gains of more than $40 million from the sale. The company said it will reinvest net proceeds in new assets.

Last week, SFL announced its purchases of three Suezmax tankers fixed on long-term charters.