SFL Stock

SFL Corporation Ltd. operates as an international ship owning and chartering company.

The company has a large and diverse asset base across the maritime, shipping and offshore asset classes and business sectors. As of December 31, 2022, the company’s assets consisted of 10 crude oil tankers, 15 dry bulk carriers, 32 container vessels (including seven leased-in container vessels), three car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers, and six oil product tankers, as well as four car carriers under construction and expected for delivery in 2023 and 2024, included in its wholly owned subsidiaries. The company is also partly own four leased-in container vessels in its associated companies.

Acquisitions and Disposals

Acquisitions

In the year ended December 31, 2022, the company took delivery of the following vessels:

In January 2022, the company acquired and took delivery of two LR2 product tankers SFL Lion and SFL Panther, built in 2014 and 2015 respectively. Upon delivery, the vessels commenced five-year charters to Trafigura Maritime Logistics Pte Ltd (Trafigura).

In January 2022 and February 2022, the company acquired and took delivery of two 2019-built Suezmax tankers, Marlin Sicily and Marlin Shikoku, respectively. Upon delivery, the vessels commenced five-year charters to Trafigura.

In August 2022, the comopany agreed to acquire four 2015 and 2020 built modern eco-design Suezmax tankers, in combination with six-year charters to a subsidiary of Koch Industries. The vessels were delivered to the company between September 2022 and November 2022.

In September 2022, the company agreed to acquire two newbuild eco-design feeder container vessels, Maersk Phuket and Maersk Pelepas. The two vessels were delivered to the company in September and November 2022, respectively, and immediately commenced seven-year charters to Maersk.

In November 2022, the company took delivery of a 4,900 CEU car carrier, Arabian Sea, in combination with a six-year charter to Eukor.

Disposals

In the year ended December 31, 2022, the company disposed of the following vessels and drilling units:

In April 2022, the company delivered the 2004-built VLCCs, Front Energy and Front Force, to an unrelated third party. Furthermore, the company agreed with Frontline Shipping to terminate the long-term charters for the vessels upon their sale.

In April 2022, the company sold the 1,700 TEU container vessel, MSC Alice, which was accounted for as a sales-type lease to MSC following execution of the applicable purchase obligation in the charter contract.

In the period between January 1, 2023 and March 16, 2023, the company disposed of the following vessels:

In January 2023, the company agreed to sell a 2009-built Suezmax tanker, Glorycrown. The vessel was delivered to the new owner on March 9, 2023.

Strategy

The key elements of the company’s strategy are to expand its asset base; diversify its asset base; expand and diversify its customer relationships; and pursue medium to long-term fixed-rate charters.

Environmental and Other Regulations

A variety of government and private entities subject the company’s vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities such as the USCG, harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators. Certain of these entities require the company to obtain permits, licenses, certificates and other authorizations for the operation of its vessels. The company has obtained Anti-fouling System Certificates for all of its vessels that are subject to the Anti-fouling Convention.

Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the ISM Code), the company’s operations are also subject to environmental standards and requirements. The ISM Code requires the party with operational control of a vessel to develop an extensive safety management system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures for operating its vessels safely and describing procedures for responding to emergencies. The company relies upon the safety management system that it and its technical management team have developed for compliance with the ISM Code. The failure of a vessel owner or bareboat charterer to comply with the ISM Code may subject such party to increased liability, may decrease available insurance coverage for the affected vessels and may result in a denial of access to, or detention in, certain ports.

The U.S. Clean Air Act of 1970 (including its amendments of 1977 and 1990) (CAA) requires the EPA to promulgate standards applicable to emissions of volatile organic compounds and other air contaminants. The company’s vessels are subject to vapor control and recovery requirements for certain cargoes when loading, unloading, ballasting, cleaning and conducting other operations in regulated port areas. The company’s vessels operating in such regulated port areas with restricted cargoes are equipped with vapor recovery systems that satisfy these existing requirements.

The company has obtained applicable documents of compliance for its offices and safety management certificates for all of its vessels for which the certificates are required by the IMO. The document of compliance and safety management certificate are renewed as required.

History

SFL Corporation Ltd. was founded in 2003. The company was incorporated in Bermuda in 2003.