SFL – Sale of Suezmax Tankers and Termination of Charters

Rhea-AI Summary

SFL (NYSE: SFL) agreed to sell two 2015-built Suezmax tankers on charter to a Koch subsidiary for a gross price of approximately $57 million per vessel. Net proceeds are estimated at $26 million per vessel after debt repayment and a termination fee under a pre-agreed profit-sharing arrangement. The vessels will be delivered in the fourth and first quarter, respectively, and SFL expects to record an aggregate book gain of about $23 million allocated between the two ships.

SFL also agreed to terminate charters for two 2020-built Suezmax tankers with Koch; those two retained vessels are Korea-built eco-design ships fitted with scrubbers and will initially trade in the spot market.

Positive

• Gross sale price approximately $57M per vessel
• Net proceeds estimated at approximately $26M per vessel
• Expected aggregate book gain of approximately $23M
• Retained two 2020-built eco-design Suezmax vessels with scrubbers

Negative

• Sale removes two 2015 Suezmax vessels from the fleet
• Termination fees applied under profit-sharing reduce cash proceeds

Key Figures

Gross sale price approximately $57 million per vessel Two 2015-built Suezmax tankers sold

Net proceeds approximately $26 million per vessel After debt repayment and termination fee

Aggregate book gain approximately $23 million From sale of two Suezmax tankers

Vessels sold 2 Suezmax tankers 2015-built, on charter to Koch subsidiary

Charters terminated 2 Suezmax tankers 2020-built vessels with Koch charters terminated

52-week high discount 31.87% below high Price vs 52-week high of 11.14

52-week low premium 12.78% above low Price vs 52-week low of 6.73

Market capitalization $1,009,263,166 Pre-news market value

Market Reality Check

$7.90 Last Close

Volume Volume 1,022,803 is below 20-day average 1,207,698 (relative volume 0.85x). normal

Technical Price 7.59 is below 200-day MA of 8.23 and 31.87% under the 52-week high.

Peers on Argus

SFL was roughly flat (-0.13%) while key peers were mixed: gains in GSL (+1.04%) and CCEC (+3.33%), declines in ECO (-4.21%), NMM (-0.5%), and GNK (-0.27%). This points to stock-specific rather than broad sector momentum.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 11	Q3 results presentation	Neutral	+9.4%	Announcement of availability of preliminary Q3 2025 results presentation.
Nov 11	Q3 earnings	Positive	+9.4%	Preliminary Q3 2025 results and 87th consecutive $0.20 per share dividend.
Nov 04	Earnings call invite	Neutral	-1.5%	Invitation and logistics for Q3 2025 results webcast and conference call.
Aug 19	Q2 presentation	Neutral	-16.6%	Release of Q2 2025 results presentation materials to investors.
Aug 19	Q2 earnings	Negative	-16.6%	Q2 2025 results with lower dividend and modest net income alongside fleet sales.

Pattern Detected

Recent earnings-related news has produced large but mixed price reactions, with both strong rallies and sharp selloffs around results and presentations.

Recent Company History

Over the last six months, SFL’s news flow has centered on quarterly results and presentations. Q2 2025 results on Aug 19 showed modest net income and a reduced dividend, coinciding with a -16.65% move, while related presentation news saw the same decline. In contrast, preliminary Q3 2025 results and the 87th consecutive dividend on Nov 11 aligned with a +9.44% gain. Earlier, the Q3 invitation on Nov 4 drew a smaller -1.48% reaction. The new tanker sale continues the fleet optimization trend highlighted in prior earnings updates.

Market Pulse Summary

This announcement details SFL’s sale of two 2015-built Suezmax tankers for gross proceeds of approximately $57 million per vessel and an aggregate book gain of approximately $23 million, alongside charter terminations for two 2020-built tankers. It continues a fleet optimization theme seen in recent results, emphasizing younger, fuel-efficient ships. Investors may focus on how redeployment into the spot market affects earnings, the scale of reinvestment, and future disclosure on long-term charter coverage for these assets.

Key Terms

suezmax technical

"agreed to sell two 2015-built Suezmax tankers currently on charter"

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.

charter technical

"tankers currently on charter to a subsidiary of Koch Industries"

A charter is the legal document that creates a corporation and sets its basic rules—like a combined birth certificate and rulebook—describing the company’s purpose, types of shares, voting rights, board powers, and how it can raise capital. Investors care because the charter determines who controls the company, what rights shareholders have, and how easily those rights can change; amendments can alter ownership value, voting influence, and risk.

scrubbers technical

"Korea built eco-design and equipped with scrubbers"

Scrubbers are equipment fitted to ship stacks or industrial smokestacks that clean exhaust gases by removing sulfur and other pollutants before they enter the air. For investors, scrubbers matter because they are a compliance and capital-cost solution to emissions rules: installing or operating them affects a company’s expenses, fuel choices, and regulatory risk, much like adding a filter to a car changes running costs and resale value.

spot market technical

"The vessels will initially be employed in the spot market"

The spot market is where assets—like stocks, commodities, or currencies—are exchanged for immediate delivery and payment at the current market price. It matters to investors because spot prices reflect real-time supply and demand, guide short-term trading decisions, and serve as the baseline for contracts and valuations; think of it as buying an item at the store right now instead of ordering it for later.

AI-generated analysis. Not financial advice.

SFL Corporation Ltd. (NYSE: SFL) ("SFL" or the "Company") today announced that it has agreed to sell two 2015-built Suezmax tankers currently on charter to a subsidiary of Koch Industries, Inc. ("Koch").

The gross sales price is expected to be approximately $57 million per vessel. Net proceeds are estimated at approximately $26 million per vessel after repayment of associated debt and payment of a termination fee to Koch, in accordance with a pre-agreed profit-sharing arrangement.

The vessels will be delivered in the fourth and first quarter, respectively, and SFL expects to record an aggregate book gain of approximately $23 million from the transaction, allocated between the two vessels.

The Company has furthermore agreed to terminate the charters for two 2020-built Suezmax tankers with Koch, whereby SFL will pay a termination fee in accordance with a pre-agreed profit-sharing arrangement. The two retained vessels are Korea built eco-design and equipped with scrubbers. The vessels will initially be employed in the spot market and in due course the Company may look for longer-term employment for these vessels.

Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, commented: “This transaction illustrates the embedded value in our fleet, where we can materialize a significant profit from the sale of two 10-year-old vessels just three years after their acquisition. And in the meantime, we have enjoyed solid cash flows from the vessels. A portion of the proceeds will be reinvested in the younger, more fuel-efficient vessels that are well positioned to benefit from the current strong charter market, where prevailing charter rates are materially higher than the existing fixed charter rates.”

December 19, 2025

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

What sale price did SFL announce for the two 2015 Suezmax tankers (SFL)?

SFL expects a gross sales price of approximately $57 million per vessel.

How much net cash will SFL receive from each SFL vessel sale?

Net proceeds are estimated at approximately $26 million per vessel after debt repayment and termination fees.

What book gain will SFL record from the Suezmax tanker sales?

The company expects to record an aggregate book gain of approximately $23 million allocated between the two vessels.

When will the sold SFL vessels be delivered to the buyer?

The vessels are scheduled for delivery in the fourth and first quarter, respectively.

What happens to the two 2020-built Suezmax tankers previously on charter to Koch (SFL)?

SFL and Koch agreed to terminate those charters; the two retained 2020-built vessels are eco-design ships equipped with scrubbers and will initially operate in the spot market.