SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announces that it has been notified by Hunter Group ASA (“Hunter”) that it will exercise purchase options on the two VLCCs Hunter Atla and Hunter Saga with delivery in late August.
The transaction is expected to increase SFL’s cash balance by approximately $23 million, and the proceeds are expected to be reinvested in new assets. SFL expects that the purchase option on the third VLCC Hunter Laga on charter to Hunter will be exercised later this year.
Ole B. Hjertaker, CEO of SFL Management AS, said in a comment:
“With a versatile toolbox of time charters, bareboat charters and financing structures, SFL stands out as a unique partner to companies in the maritime industry and we see an increasing number of opportunities to deploy capital in our core segments, given the increased need for alternative capital providers in the maritime industry.
The Hunter transaction has been very attractive for SFL as it has generated a strong return on an investment with a very low risk profile. Our ambition is always to structure tailor made chartering or financing arrangements for our customers in combination with attractive risk-adjusted returns for our shareholders, and in this project we agreed on repurchase flexibility in exchange for higher return on capital.”
June 22, 2020
The Board of Directors
SFL Corporation Ltd.
Investor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
André Reppen, Senior Vice President, SFL Management AS
+47 23 11 40 55
Marius Furuly, Vice President, SFL Management AS
+47 23 11 40 16
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 23 11 40 11
SFL has a unique track record in the maritime industry and has paid dividends every quarter since 2004. The Company’s fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company’s website: www.sflcorp.com
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand resulting from changes in OPEC’s petroleum production levels and world wide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports