SFL Corporation (NYSE:SFL) announced today that it has entered into an agreement to sell two 2015-built Suezmax tankers to Koch Industries, marking a strategic move for the shipping company.
The gross sales price for the vessels is estimated at approximately $57 million each, resulting in total proceeds of $114 million.
After the repayment of associated debt and a pre-agreed termination fee to Koch under the existing profit-sharing arrangement, SFL expects to retain around $26 million per vessel.
The transaction, which is expected to close with deliveries in the fourth quarter of this year and the first quarter of the next, is set to yield an aggregate book gain of approximately $23 million for SFL, with the gain allocated between the two vessels.
Alongside the sale, SFL has agreed to terminate the charters for two 2020-built Suezmax tankers with Koch, again in accordance with the profit-sharing arrangement.
These vessels, which are built in Korea and designed with eco-friendly features such as scrubbers, will initially be employed in the spot market.
In the future, SFL may seek longer-term employment opportunities for the vessels.