SFL - Newbuild order for two Very Large Ammonia Carriers in combination with long term time charters

Including acquisitions and charter extensions announced this year, SFL has added more than $1.3 billion to fixed-rate charter backlog in 2026.

Rhea-AI Summary

SFL Corporation (SFL) has agreed to build two Very Large Ammonia Carriers alongside long-term time charters to an oil major. Delivery of the 93,000 cbm vessels is scheduled from the second quarter of 2028. Aggregate yard construction cost is expected to be approximately $216 million. The charters add a minimum of approximately $162 million to fixed-rate charter backlog, with options for the charterer to extend them by up to four years.

4 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointLong-term oil-major charters add a minimum of approximately $162 million to fixed-rate charter backlog. 8.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Two newbuild ammonia carriers add a new segment, with delivery scheduled from the second quarter of 2028.
• Moderate pointAcquisitions and charter extensions announced this year added more than $1.3 billion to fixed-rate charter backlog in 2026. 70% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Charterer extension options allow up to 4 years of additional time charters.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Aggregate yard construction cost is expected to be approximately $216 million. 12% of market cap
• Minor pointInitial charter duration remains to be determined within the next six months.

News Explained

The initial charter period is still undecided and is to be set within six months; the stated $162 million backlog addition is a minimum and may rise when that term is set.

Key Figures

Carriers ordered: 2 vessels Capacity: 93,000 cbm per vessel Yard construction cost: approximately $216 million +5 more

Carriers ordered

2 vessels

Very Large Ammonia Carriers

Capacity

93,000 cbm per vessel

Newbuild carriers

Yard construction cost

approximately $216 million

Expected aggregate cost

Charter backlog addition

minimum of approximately $162 million

Fixed-rate charter backlog

Scheduled delivery

From Q2 2028

Carrier delivery schedule

Initial charter duration determination

Within the next six months

Initial charter period length to be determined

Charter extension options

Up to 4 years

Options available to the charterer

Charter backlog added in 2026

More than $1.3 billion

Including acquisitions and charter extensions announced so far in 2026

Key Terms

dual-fuel propulsion, time charters, cbm, investment grade

4 terms

dual-fuel propulsion technical

"dual-fuel propulsion and the latest technology for fuel efficiency"

Dual-fuel propulsion is an engine or propulsion system designed to run on two different types of fuel (commonly a cleaner gaseous fuel such as LNG or natural gas and a liquid fuel such as diesel or heavy fuel oil). It matters to investors because it offers fuel flexibility that can lower operating costs, reduce regulatory or carbon-exposure risk, and affect resale value — like a car that can switch between petrol and electric power depending on price and rules.

time charters technical

"agreed long term time charters to an oil major"

Time charters are contracts in which a ship owner rents a vessel to a renter for a set period of time; the renter directs where the ship goes and pays for fuel and voyage costs, while the owner provides the crew and handles maintenance. Investors care because time charters turn uncertain spot-market sales into more predictable revenue and cash flow, reducing near-term exposure to volatile freight rates—like renting a truck for months instead of selling single deliveries.

cbm technical

"two 93,000 cbm Very Large Ammonia Carriers"

cbm stands for cubic meter, a measure of volume equal to a cube one meter on each side used to quantify cargo, storage space, or material volumes. Investors monitor cbm because it directly affects shipping and storage costs, production capacity and revenue for businesses that move or store physical goods—think of it as how many sofa-sized boxes fit in a truck; more cbm means higher logistical needs and potential cost impact.

investment grade financial

"a European based investment grade oil major"

A credit rating label assigned to bonds or borrowers that signals relatively low risk of default; think of it as a strong health check for a company's or government's ability to repay debt. It matters to investors because investment-grade status typically means lower interest costs for the borrower, greater eligibility for conservative funds and pension portfolios, and generally more stable returns compared with higher-risk, non-investment-grade debt.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

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SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) today announced that it has agreed to build two 93,000 cbm Very Large Ammonia Carriers. The vessels will be able to carry a wide range of petrochemical gases, and will have dual-fuel propulsion and the latest technology for fuel efficiency and cargo intake optimization. Delivery is scheduled from the second quarter of 2028 and the aggregate yard construction cost is expected to be approximately $216 million.

Concurrently, the Company has agreed long term time charters to an oil major, adding a minimum of approximately $162 million to its fixed rate charter backlog. The duration of the initial charter period will be determined within the next six months, and the backlog may increase at that point. The charterer will also have options to extend the time charters by up to 4 years.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:

«The gas carrier project marks another accretive milestone investment for SFL, adding assets in a new segment. The charterer is a European based investment grade oil major, underlining SFL's standing as a high-quality provider of maritime logistics assets. Including acquisitions and charter extensions announced so far this year, we have added more than $1.3 billion to our fixed rate charter backlog in 2026.»

October 5, 2026

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

Investor and Analyst Contacts:
Espen Nilsen Gjøsund, Vice President - Investor Relations, +47 47 50 05 00

André Reppen, Chief Treasurer & Senior Vice President, +47 23 11 40 55

Aksel Olesen, Chief Financial Officer, +47 23 11 40 36

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 23 11 40 11

About SFL

SFL has a unique track record in the maritime industry and has paid dividends every quarter since its initial listing on the New York Stock Exchange in 2004. The Company’s fleet of vessels is comprised of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company's website: www.sflcorp.com.

Cautionary Statement Regarding Forward Looking Statements

This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions in the seaborne transportation industry, which is cyclical and volatile, including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which the Company operates, including shifts in consumer demand from oil towards other energy sources or changes to trade patterns for refined oil products, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, technological innovation in the sectors in which we operate and quality and efficiency requirements from customers, increased inspection procedures and more restrictive import and export controls, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, performance of the Company’s charterers and other counterparties with whom the Company deals, the impact of any restructuring of the counterparties with whom the Company deals, and timely delivery of vessels under construction within the contracted price, governmental laws and regulations, including environmental regulations, that add to our costs or the costs of our customers, potential liability from pending or future litigation, potential disruption of shipping routes due to accidents, political instability, terrorist attacks, piracy or international hostilities, and the impact on the demand for commercial seaborne transportation and the condition of the financial markets, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. SFL disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much charter backlog will SFL's new ammonia carriers add?

The agreed long-term time charters add a minimum of approximately $162 million to SFL's fixed-rate charter backlog. The charterer is a European-based investment-grade oil major.

When will SFL determine the initial ammonia-carrier charter duration?

The initial charter period will be determined within the next six months. SFL said the backlog may increase at that point.