HAMILTON, Bermuda - SFL Corporation Ltd. (NYSE: NYSE:SFL), a leading maritime asset company, has announced the acquisition of three new LR2 product tankers for approximately $230 million, with an agreement for long-term charters to a major energy and commodities company. The vessels, presently under construction in China and featuring the latest eco-design elements, are scheduled for delivery between the second and fourth quarter of this year.
The transaction, involving sellers affiliated with SFL's largest shareholder, Hemen Holding Ltd., aligns with valuations from independent shipbrokers. The charter agreement spans a minimum of five years, with options to extend for up to three additional years. This deal is set to increase SFL's fixed-rate backlog by close to $200 million, excluding the optional period.
The undisclosed charterer holds purchase options for the tankers post the fifth and eighth year, with a profit-sharing mechanism arranged with SFL. These vessels are designed to transport clean petroleum products over long distances, catering to the growing global energy demands.
CEO Ole B. Hjertaker of SFL Management AS expressed satisfaction with this milestone in the tanker market, emphasizing the timing and the addition of a high-quality client to their portfolio.
This move reflects SFL's ongoing strategy to enhance its asset base and charter portfolio in the maritime industry. Since its NYSE listing in 2004, SFL has consistently paid quarterly dividends and has diversified its fleet across various vessel types, including tankers, bulkers, container ships, car carriers, and offshore drilling rigs.
The acquisition is based on a press release statement.
InvestingPro Insights
In light of SFL Corporation Ltd.'s recent strategic acquisition of three new LR2 product tankers, key financial metrics and analyst insights from InvestingPro provide a deeper understanding of the company's market position. SFL's market capitalization stands at a robust $1.63 billion, reflecting the scale and significance of the company within the maritime asset industry. The company's Price to Earnings (P/E) Ratio is currently 19.44, with an adjusted P/E for the last twelve months as of Q4 2023 at 21.88, indicating how the market values its earnings growth.
InvestingPro Tips highlight SFL's impressive gross profit margins, which have reached 60.53% in the last twelve months as of Q4 2023. This demonstrates the company's ability to efficiently manage its cost of sales and maximize profitability from its revenue, which was $744.33 million over the same period. Furthermore, the company's stock is known to trade with low price volatility, providing a potentially stable investment opportunity for shareholders.
Investors should note that SFL has maintained dividend payments for 21 consecutive years, with a current dividend yield of 8.02%, significantly rewarding its shareholders. Additionally, the company has experienced a high return over the last year, with a one-year price total return of 53.33%, reflecting strong market confidence and performance.
For those considering an in-depth analysis of SFL Corporation Ltd., InvestingPro offers additional insights and metrics. With the use of the exclusive coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable resources. Currently, there are 10 more InvestingPro Tips available for SFL, which could further inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.