SFL Corporation announced that it has agreed to acquire three Suezmax tankers in combination with long term time charters to a world-leading commodity trading and logistics company.

The vessels are built in 2019 and have the latest eco-design features, including exhaust gas cleaning systems. The Company expects to take delivery of the vessels in the fourth quarter.

The charter period of the vessels will be for minimum five years with extension options thereafter, adding approximately $140 million to SFL’s fixed-rate backlog. The charterer will also have the option to develop a sale of the vessels during the charter period, subject to a profit share mechanism with SFL.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “This acquisition demonstrates our ability to achieve sustained growth through new transactions with strong counterparties in multiple shipping segments. The spot tanker market is soft currently, and asset values have not moved like several other shipping segments. From a counter-cyclical perspective, we therefore believe this could be an attractive entry point in combined with long-term charters. We have this year added more than $850 million to our charter backlog and will continue to explore new opportunities going forward”.