Ship Finance International orders two LR2 product tankers in Korea

Ship Finance International orders two LR2 product tankers in Korea

Fredriksen-led Ship Finance International (SFI) has ordered two 114,000-dwt LR2 product tankers at a shipyard in Korea.

The tankers will each begin seven-year timecharters to an unnamed US-based “investment-grade energy company” when they are delivered in the second half of 2017, SFI said today. The charters each include two-year extension periods.

The Oslo-listed company did not disclose the contract price for the tankers, but said it expects each vessel to contribute around $11m a year in EBITDA during the firm period of the charter, the duration of which was not disclosed.

“We are very pleased to further expand our presence in the tanker market with long-term timecharters to one of the leading oil majors,” Ole B. Hjertaker, CEO of Ship Finance Management, said in a statement.

“The transaction demonstrates our standing in the market as a high-quality provider of transportation services for our customers, and we continue building our fleet and charter backlog with accretive acquisitions.”

The order shows SFI is diversifying into long-range product tankers. The majority of the owner’s current tanker fleet are crude tankers, comprising 12 VLCCs and five suezmaxes, plus two small 17,800-dwt clean product tankers.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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