Fredriksen-controlled SFL orders five LNG-fuelled box ships

The John Frederiksen-controlled company booked the US$1.00Bn order at China’s New Times Shipbuilding with scheduled delivery set for 2028. The vessels will have LNG dual-fuel propulsion and feature the latest innovations in fuel efficiency and cargo intake optimisation.

Concurrently, SFL has agreed minimum 10-year time charters to a liner company (which went unnamed but is deemed ‘leading’) from delivery, adding approximately US$1.2Bn to SFL’s charter backlog. 

In addition, there are options to extend the charters for two further years, and purchase options at the end of the 10th and 12th year, including a profit share feature.

SFL Management chief executive Ole Hjertaker commented, “This marks another accretive milestone investment for SFL and will add five large container vessels to our fleet. With these vessels delivered, we will have 11 LNG dual-fuel vessels, and it demonstrates our commitment to continue expanding our investment focus to assets with a lower carbon footprint while ensuring significant visibility through 10-year firm charters to an investment grade counterparty.” 

“With the acquisitions and charter extensions announced so far this year, we have added approximately US$1.75Bn to our fixed rate charter backlog.”