SFL - Sale of four LR2 and three Suezmax tankers, and termination of charters

SFL expects to reinvest the proceeds in new investments to build its long-term distribution capacity.

Rhea-AI Summary

SFL Corporation (SFL) has agreed to sell four LR2 product tankers and three Suezmax tankers to their charterer, Trafigura.

Delivery is scheduled for Q4 2026 and Q1 2027, when the existing charters will terminate. After contractual profit sharing and repayment of associated debt, SFL estimates aggregate net cash proceeds of approximately $275 million. The company also estimates an aggregate book gain of approximately $175 million. Per-vessel sale prices are confidential.

4 points · 1 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.

How the balance worksHow Sentiment works

0 major · 2 points

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

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Approximately $275 million in estimated aggregate net cash proceeds after profit sharing and associated debt repayment. 15% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately $175 million in estimated aggregate book gain from the transaction.
• Minor point. Forward-looking: it has not happened yet and may not happen.Associated vessel debt will be repaid from the sale proceeds.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reinvestment is expected in new investments that SFL anticipates will build long-term distribution capacity.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Existing Trafigura charters will terminate when the seven vessels are delivered to the buyer.
• Minor point. Forward-looking: it has not happened yet and may not happen.Contractual profit sharing reduces the sale proceeds retained by SFL.

Key Figures

LR2 tankers for sale: 4 vessels Suezmax tankers for sale: 3 vessels Net cash proceeds: $275 million +2 more

LR2 tankers for sale

4 vessels

2014- and 2015-built product tankers

Suezmax tankers for sale

3 vessels

2019-built tankers

Net cash proceeds

$275 million

Estimated aggregate proceeds after profit share and associated debt repayment

Aggregate book gain

$175 million

Company estimate from the transaction

Vessel delivery

Q4 2026 and Q1 2027

Delivery schedule; existing charters terminate upon delivery

Key Terms

suezmax, time charters, book gain

3 terms

suezmax technical

"three 2019-built Suezmax tankers"

Suezmax is the classification for the largest oil tanker size that can pass through the Suez Canal fully loaded; think of it as the biggest truck that still fits down a narrow highway. It matters to investors because ship size influences shipping costs, route choices and supply-chain flexibility — factors that affect oil transport expenses, freight rates and the profitability of energy and shipping companies.

time charters technical

"currently on time charters to Trafigura"

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.

book gain financial

"aggregate book gain of approximately $175 million"

An accounting gain recorded on a company’s books when an asset’s recorded value is increased relative to its carrying amount. It commonly arises when proceeds from selling an asset exceed that asset’s carrying (book) value, but can also appear as an unrealized gain when accounting rules require remeasurement to fair value; the term describes what is reported in the financial statements rather than the cash received or the taxable gain, and the recognition and timing depend on applicable accounting standards.

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 sell four 2014- and 2015-built LR2 product tankers and three 2019-built Suezmax tankers, currently on time charters to Trafigura, a global leader in the commodities industry.

The vessels were acquired in 2021 and 2022, and the charter agreements include a profit share mechanism in the event of a profitable sale. The Company has now agreed to sell the vessels to Trafigura with delivery in Q4 2026 and Q1 2027, and the existing charters will terminate when the vessels are delivered to the buyer.

The sales price per vessel is confidential, but after profit share and repayment of associated debt, the net cash proceeds to SFL is estimated at approximately $275 million in aggregate. The Company currently estimates an aggregate book gain of approximately $175 million from the transaction.

Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, commented: "This transaction demonstrates the intrinsic value of our operating platform. We have enjoyed strong cash flows from the vessels over the last five years, and in addition retained a significant share of the asset value upside, which is crystallizing now. We expect to reinvest the proceeds in new accretive investments that will build our long-term distribution capacity."

October 7, 2026

The Board of Directors
SFL Corporation Ltd.
Hamilton, Bermuda

Investor and Analyst Contacts:
Espen Nilsen Gjøsund, Vice President - Investor Relations, +47 47500500
André Reppen, Chief Treasurer & Senior Vice President, +47 23114055
Aksel Olesen, Chief Financial Officer, +47 23114036

Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS, +47 23114011

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, the length and severity of the ongoing coronavirus outbreak and governmental responses thereto 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.

When will SFL deliver the tankers sold to Trafigura?

The four LR2 product tankers and three Suezmax tankers are scheduled for delivery in Q4 2026 and Q1 2027. Their existing time charters will terminate upon delivery to Trafigura.

How much cash and book gain does SFL expect from the tanker sale?

SFL estimates aggregate net cash proceeds of approximately $275 million after profit sharing and repayment of associated debt, and an aggregate book gain of approximately $175 million. The sale price per vessel is confidential.