SFL Corporation  announced that it has agreed to sell the two 2015-built Suezmax tankers SFL Thelon and SFL Ottawa, currently on charter to a trading house.

The gross sales price is expected to be approximately $57 million per vessel. Net proceeds are estimated at approximately $26 million per vessel after repayment of associated debt and payment of a termination fee in accordance with a pre-agreed profit share arrangement.

The vessels will be delivered in the fourth and first quarter, respectively, and SFL expects to record an aggregate book gain of approximately $23 million from the transaction, allocated between the two vessels.

The Company and the same charterer has furthermore agreed to mutually terminate the charters for the two 2020-built Suezmax tankers SFL Albany and SFL Fraser and pay a termination fee in accordance with a pre-agreed profit share arrangement. The two retained vessels are Korea built eco-design and equipped with scrubbers. The vessels will initially be employed in the spot market and in due course the Company may look for longer-term employment for these vessels.

Ole B. Hjertaker, Chief Executive Officer of SFL Management AS, commented: “This transaction illustrates the embedded value in our fleet, where we can materialize a significant profit from the sale of two 10-year-old vessels just three years after their acquisition. And in the meantime, we have enjoyed solid cash flows from the vessels. A portion of the proceeds will be reinvested in the younger, more fuel-efficient vessels that are well positioned to benefit from the current strong charter market, where prevailing charter rates are materially higher than the existing fixed charter rates.”