SFL closes ship agreements with Maersk and MSC
SFL Corporation Ltd. entered into ship charter agreements with the Maersk and MSC shipping lines.
With a broad and diverse asset base in the maritime and offshore industries, SFL Corporation Ltd. owns and leases ships. The company operates the fleet that includes crude oil tankers, bulk and mineral ships, dry bulk carriers, container ships, and oil rigs. Serves clients worldwide.
During the first quarter, SFL extended the charter agreement for three 10,000 TEU class container ships in time to charter the Maersk Line until 2024.
All three ships will be equipped with exhaust gas cleaning systems during their upcoming dry dock inspections.
The company also entered into agreements to extend the chartering of seven 4,100 TEU container vessels on charter to MSC until 2025.
Together, these extensions added more than $ 170 million to SFL’s fixed-rate freight portfolio.
SFL
As of March 31, 2020, and adjusted for subsequent acquisitions and divestments, the company’s fixed-rate freight portfolio for the company’s 87 vessel and platform fleet was approximately $ 3.6 billion, with an average remaining term of approximately 4.5 years. , or 7.4 years if weighted by charter income.
In addition to long-term charter boat charters, the company also receives short-term market-based boat charters and profit-sharing agreements.
Some of the long-term statutes include purchase options that, if exercised, can reduce the accumulation of fixed-rate freight and the remaining average term.
At the same time, exercising any of those repurchase options will increase the capital available to be deployed for new investments. Additionally, various charters include a profit-sharing feature that can increase the company’s future operating results.
Most SFL ships are hired on time or on trips where the company performs the technical, operational and commercial management of the ships. In addition, some ships are used on unmanned charters where the Company’s clients are responsible for these management services.
Fleet
SFL has 48 container ships and two automobile carriers. The ocean liner fleet generated approximately $ 78.4 million in gross rentals in the first quarter.
Of this amount, approximately 96% was derived from vessels on long-term charters and approximately 4% was derived from vessels on short-term charters.
As of March 31, 2020, SFL’s fleet of transportation lines fixed rate portfolio was approximately $ 1.9 billion, with an average remaining of approximately 5 years or 8 years if weighted by revenue from charters.
The world’s two largest line operators, Maersk and MSC, account for 84% of the order book.
