SFL Sells Seven Tankers to Trafigura, Realizes $175M Gain | Mariner News
SFL Corporation Ltd. has announced the sale of seven tankers—four LR2 product tankers and three Suezmax crude oil tankers—to Trafigura, the vessels’ current time charterer. The transaction, which includes the termination of existing charters upon delivery, is estimated to generate approximately $275 million in net cash proceeds and an aggregate book gain of $175 million for SFL.
The fleet involved comprises four 2014- and 2015-built LR2 product tankers and three 2019-built Suezmax tankers. SFL acquired these vessels in 2021 and 2022. Deliveries to Trafigura are scheduled for Q4 2026 and Q1 2027.
SFL’s Chief Executive Officer, Ole B. Hjertaker, stated that the transaction “demonstrates the intrinsic value of our operating platform,” highlighting “strong cash flows from the vessels over the last five years” and “a significant share of the asset value upside.” The original charter agreements with Trafigura included a profit share mechanism in the event of a profitable sale.
This acquisition signifies a strategic move by Trafigura to internalize key tonnage for its commodity operations. By transitioning from charterer to owner of these specific LR2 and Suezmax vessels, Trafigura gains direct control over a portion of its shipping logistics. This decision removes these seven vessels from the broader charter market, potentially optimizing their supply chain and securing long-term freight capacity without reliance on external tonnage for these specific assets.
For SFL, the sale represents a successful asset rotation strategy, monetizing vessels acquired relatively recently at a substantial profit. The estimated $275 million in net cash proceeds provides significant liquidity, while the $175 million book gain underscores effective asset management in a dynamic tanker market.
