SFL Corporation Ltd. sold its two 2015‑built Suezmax tankers, the SFL Thelon and the SFL Ottawa, to a trading house for an estimated gross price of $57 million per vessel. The company will receive net proceeds of about $26 million per ship after settling debt and a termination fee, creating a book gain of roughly $23 million on the sale.
The sale is part of a broader fleet‑modernization strategy that also includes the termination of charters for the 2020‑built Suezmax tankers, the SFL Albany and the SFL Fraser. Those vessels are being returned to the company in the fourth quarter of 2025 and the first quarter of 2026, respectively, in exchange for a termination fee under a pre‑agreed profit‑share arrangement with a subsidiary of Koch Industries.
SFL’s management says the proceeds will be reinvested in younger, fuel‑efficient vessels that can command higher charter rates in the current market. The company’s diversified fleet, which includes tankers, bulkers, container ships, car carriers and energy assets, is positioned to benefit from the high charter rates that have driven demand for Suezmax vessels in recent months.
The decision to sell older, 10‑year‑old tankers and to terminate charters on newer, scrubber‑equipped vessels reflects a focus on operational efficiency and cost control. Older ships typically incur higher maintenance costs and lower fuel efficiency, while newer vessels offer lower operating expenses and better compliance with environmental regulations, allowing SFL to capture a larger share of the premium market.
CEO Ole B. Hjertaker said the transaction "illustrates the embedded value in our fleet and allows us to materialize a significant profit from the sale of two 10‑year‑old vessels just three years after their acquisition. The proceeds will be deployed to acquire younger, fuel‑efficient vessels that can capitalize on the strong charter market."
SFL’s charter backlog, which stood at approximately $4 billion as of Q3 2025, provides a stable revenue base while the company realigns its fleet to capture higher margins in the tanker segment. The sale and charter terminations are expected to strengthen the balance sheet and support future growth initiatives.
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