SFL Newbuild Agreements Add Three Ships and $333 Million in Charter Backlog

Summary

SFL Corporation has agreed to acquire two 8,800-TEU container ships and a 93,000-cubic-metre very large ammonia carrier for approximately $365 million. Deliveries are scheduled for 2027 and 2028, with long-term charters secured for all three vessels, adding at least $333 million to the company’s fixed-rate charter backlog.

Acquisitions come with employment secured

The SFL newbuild agreements announced on 28 October 2026 combine fleet investment with contracted employment, extending the company’s container shipping portfolio and its recently announced entry into large gas carriers.

The two container ships are scheduled for delivery in 2027. Each has a minimum eight-year time charter with a leading liner company, with extensions of up to four additional years.

The agreements include purchase options at the end of years eight, ten and twelve, incorporating a profit-sharing feature.

The 93,000-cubic-metre dual-fuel very large ammonia carrier, or VLAC, is scheduled for delivery in 2028. It has secured a minimum five-year charter with a major commodities company, with extension options covering another two years.

Charter terms include sale flexibility

During the final two years of the VLAC’s fixed charter period, the charterer may develop a sale of the vessel, subject to a profit-sharing mechanism with SFL.

The three contracts will add approximately $333 million in minimum fixed-rate charter backlog. Extensions could increase that amount.

SFL Management Chief Executive Ole B. Hjertaker said acquisitions and new charters announced during 2026 had added more than $1.6 billion to fixed-rate backlog.

Backlog represents contracted future charter revenue. It is distinct from profit and does not measure the vessels’ returns after financing, operating expenses and other costs.

The structure gives SFL revenue visibility from delivery, while purchase and sale provisions create potential routes for subsequently realising asset value.

Latest VLAC follows an earlier two-ship order

The ammonia carrier acquisition follows a separate announcement on 5 October, when SFL agreed to build two 93,000-cubic-metre VLACs at an aggregate construction cost of approximately $216 million.

Those vessels are scheduled for delivery from the second quarter of 2028. They will be capable of carrying a range of petrochemical gases and feature dual-fuel propulsion, alongside measures intended to improve fuel efficiency and cargo intake.

SFL secured long-term charters for that pair with a European-based, investment-grade oil major. The contracts initially added at least $162 million to fixed-rate backlog, with the initial charter duration to be determined within six months and extension options of up to four years.

The latest acquisition therefore brings SFL’s VLAC commitments announced in October to three vessels.

The carrier designation describes cargo capability. The announcements do not identify the propulsion fuels, so dual-fuel capability should not be interpreted as confirmation that the vessels will use ammonia as fuel.

Container business gains longer revenue visibility

The new container ship commitments also follow a substantial extension of existing employment.

On 11 September, SFL announced seven-year charter extensions for six 15,400-TEU container vessels employed by Hapag-Lloyd.

Those agreements extend firm-rate charter coverage into 2035–36 and add approximately $750 million to fixed-rate backlog.

The September extensions and October acquisitions illustrate two ways SFL is developing its container business: retaining employment for existing vessels and adding ships with charters arranged ahead of delivery.

For liner customers, such structures provide vessel capacity without requiring direct ownership. For SFL, the commercial proposition rests on matching asset investment with charter income and maintaining relationships over several shipping cycles.

Tanker disposals form part of portfolio changes

Alongside the new investments, SFL announced on 7 October that it had agreed to sell four LR2 product tankers and three Suezmax tankers to Trafigura.

Delivery to the buyer is scheduled across the fourth quarter of 2026 and first quarter of 2027, with existing charters terminating on handover.

After profit sharing and repayment of associated debt, SFL estimated aggregate net cash proceeds of approximately $275 million and a book gain of about $175 million.

Together, the transactions show an active reshaping of the portfolio. The next operational milestones are completing disposals and taking delivery of the contracted newbuilds, which will begin their agreed employment as they enter service.

FAQs

What vessels is SFL acquiring?

Two 8,800-TEU container ships and one 93,000-cubic-metre dual-fuel very large ammonia carrier.

What is the combined acquisition cost?

Approximately $365 million.

When are deliveries scheduled?

The container ships in 2027 and the ammonia carrier in 2028.

How long are the initial charters?

At least eight years for each container ship and five years for the ammonia carrier.

Will the VLAC operate on ammonia fuel?

The announcement specifies dual-fuel propulsion but does not identify the fuels.