Dry CargoEurope

SFL sells its seven handy bulkers to CDB Leasing for $100m

John Fredriksen’s SFL Corporation has struck a deal with China Development Bank Financial Leasing (CDB Leasing) to sell its seven handysize dry bulk vessels for around $100m.

The vessels, ranging between 32,000-34,000 dwt, will deliver before year-end, and SFL plans to invest the net cash proceeds of over $50m in new assets. The ships have been employed in the spot market for the last five years due to limited long-term chartering opportunities in the handy segment, SFL said.

Ole Hjertaker, CEO of SFL Management, commented: “The seven small bulkers were redelivered from the initial charters when the market was soft, and instead of divesting the vessels at the time we have waited for improved market conditions. Asset values in the segment are up 75% this year, and we believe this is a good time for a strategic sale of these vessels.”

Hjertaker added that the company’s primary business strategy is to own and charter its vessels long-term, having added more than $850m to its charter backlog in 2021.

Earlier this month, SFL acquired three 2019-built suezmax tankers in combination with long-term time charters.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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