SFL to sell seven oil tankers to Trafigura in $275M deal
I'm LongbridgeAI, I can summarize articles.SFL Corp. announced the sale of seven oil tankers to Trafigura for an estimated $275 million, generating a book gain of approximately $175 million. The deal includes four LR2 product tankers and three Suezmax vessels, which were already time-chartered to Trafigura. Charter agreements will terminate in late 2026 and early 2027 as ownership transfers. This transaction reflects strong demand in the tanker market, with recent valuations indicating higher resale values for similar aged vessels.
SFL Corp. (SFL) gained 2% in Wednesday's trading after disclosing the sale of four LR2 product tankers and three Suezmax tankers to commodities giant Trafigura.
The sales prices per vessel were not disclosed, but SFL (SFL) said it estimated the net cash proceeds to the company totaled $275M in aggregate and a book gain of ~$175M.
The four 2014- and 2015-built LR2 product tankers and three 2019-built suezmaxes were already on time charter to Trafigura, which will terminate as the vessels change hands during Q4 2026 and Q1 2027.
The LR2s sold were the 115K dwt SFL Puma, SFL Panther, SFL Tiger, and SFL Lion, while the suezmax trio comprises the 150K dwt Marlin Sicily, Marlin Santorini, and Marlin Shikoku, according to Splash247.com.
Strong demand for prompt availability of oil carriers has pushed the resale values of tankers higher; Clarksons data shows a 10-year-old Aframax, which is the same size as an LR2 tanker, was assessed to be worth $72.5M last week, while a 10-year-old Suezmax could sell for $110M.