SFL Corporation Secures $23 Million Gain Through Strategic Tanker Sale and Fleet Update
Hamilton, Friday, 19 December 2025.
SFL announces the sale of two Suezmax tankers, projecting a $23 million book gain to reinvest in modern eco-design vessels and capitalize on strong spot market rates.
Unlocking Value Through Asset Rotation
SFL Corporation Ltd. (NYSE: SFL) has moved to crystallize value within its fleet by agreeing to sell two 2015-built Suezmax tankers currently chartered to a subsidiary of Koch Industries, Inc. [1]. The transaction sets a gross sales price of approximately $57 million per vessel [1]. After accounting for debt repayment and a termination fee payable to Koch, the company estimates net cash proceeds will amount to approximately $26 million per vessel [1]. This strategic divestment is expected to generate an aggregate book gain of approximately $23 million for SFL, with the vessels scheduled for delivery between the fourth quarter of 2025 and the first quarter of 2026 [1]. This move aligns with SFL’s broader strategy to manage its diverse fleet of approximately 73 vessels, which spans tankers, bulkers, container vessels, and energy assets [2].
Optimizing Fleet Composition
The decision to sell underscores a calculated approach to asset management by SFL’s leadership. Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, highlighted that the transaction demonstrates the “embedded value” in the company’s fleet, noting the ability to realize significant profit on 10-year-old vessels acquired just three years prior [1]. The capital released from this sale is earmarked for reinvestment into younger, more fuel-efficient tonnage [1]. In conjunction with the sales, SFL has agreed to terminate the charters for two 2020-built Suezmax tankers, also held with Koch [1]. Unlike the 2015-built vessels being sold, these modern assets—constructed in Korea and equipped with eco-design features and scrubbers—will be retained [1]. SFL intends to deploy these vessels in the spot market, positioning them to capture prevailing charter rates that management describes as “materially higher” than the existing fixed rates [1].
Financial Performance and Market Outlook
This portfolio adjustment occurs against a backdrop of mixed market performance for SFL’s stock. As of late 2025, SFL shares were trading at $7.5950, representing a year-to-date decline of -25.685% from the opening price of $10.22 [6]. Despite the share price pressure, the company maintains a robust dividend yield of 10.53% and has paid dividends every quarter since its initial listing in 2004 [1][6]. The company’s financial health remains a focal point for investors. In its most recent earnings report released on November 12, 2025, SFL reported earnings per share (EPS) of $0.07, beating estimates by $0.08, although revenue saw a year-over-year decline of 30.2% [6]. With the next earnings release estimated for February 11, 2026, market observers will likely scrutinize how the proceeds from the Suezmax sales and the shift to spot market exposure impact the company’s balance sheet and future guidance [6].