SFL Corporation to Sell Seven Tankers to Trafigura for $275 Million

SFL Corporation has agreed to sell seven tankers to global commodity trader Trafigura, a deal expected to generate $275 million in net cash proceeds. The transaction marks a strategic move by the ship-owning firm to realize significant gains on its existing fleet while positioning itself for future capital deployment.

The sale includes four LR2 product tankers constructed between 2014 and 2015, alongside three Suezmax tankers built in 2019. The company anticipates an aggregate book gain of approximately $175 million from the divestiture, which underscores the appreciation in vessel values over the holding period.

"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," said Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, in a statement.

Transaction Timeline and Charter Impact

The handover of the seven vessels is scheduled to occur in stages, with deliveries slated for the fourth quarter of 2026 and the first quarter of 2027. Under the terms of the agreement, the existing charter contracts associated with these ships will terminate upon their respective delivery dates to Trafigura.

For SFL, this divestment serves as a mechanism to rotate capital. By offloading assets that have already provided five years of steady cash flow, the company is effectively locking in the market value of the ships at a time when tanker valuations remain elevated compared to historical averages.

What This Means for SFL's Fleet Strategy

The sale is part of a broader trend among major ship owners to optimize fleet age and composition. By exiting these specific assets, SFL reduces its exposure to the maintenance and operational cycles of mid-aged tankers, freeing up liquidity for potential reinvestment into newer tonnage or other maritime segments.

For the broader shipping market, the transaction highlights the continued appetite among commodity traders like Trafigura to secure long-term control over logistics and transport capacity as global energy trade routes remain under pressure. The deal provides SFL with a clear path to strengthen its balance sheet, while Trafigura gains direct ownership of a modern, versatile tanker fleet.