John Fredriksen’s SFL Corp has struck a deal to buy two LNG-fuelled chemical tankers for long-term charter to Norwegian compatriot Stolt-Nielsen.
The stainless-steel 33,000-dwt ships were built in 2022 and 2023 and are costing $114m combined.
The only ships that fit these criteria are the 33,300-dwt Gold Trader, Gold Trader I, Gold Trader II (all built 2022) and Gold Trader III (built 2023), owned by Japan’s Nisshin Shipping.
Dutch operator Stolt Tankers will take the ships on term deals for at least eight years.
One tanker will be on a fixed-rate time charter and the other employed in a pool with similar-size vessels.
The fixed-rate deal can be stretched for up to three years, with purchase options after years five and eight, subject to a profit share mechanism with SFL.
SFL chief executive Ole Hjertaker said the deal was another “accretive investment” for his company. He called the vessels “sophisticated”.
New York and Oslo-listed SFL has a mixed fleet including tankers, bulkers and container ships, but it has no chemical carriers currently.
Hjertaker added: “With these vessels, we will have six LNG dual-fuel vessels in our fleet, and the transaction demonstrates our ability to expand our portfolio of maritime assets with vessels suitable for long-term charters to industry-leading companies.”
New relationship
Hjertaker said he was excited to build a new relationship with Stolt-Nielsen, a market leader in chemicals logistics.
“The market dynamics for stainless-steel chemical tankers are also very favourable now, with steady underlying growth in demand, an ageing fleet and a limited orderbook,” he added.
“The combination of fixed-rate charter and pool earnings will therefore give us the opportunity to participate in a strong market, while also providing increased charter backlog,” the SFL boss said.
Nisshin has 105 tankers and bulkers, with five chemical tankers on order.
The Gold Trader quartet was built in China for an undisclosed price.
VesselsValue assesses them as worth between $76m and $79m each.
Stolt-Nielsen CEO Udo Lange said: “As well as securing attractively priced on-the-water tonnage in a firm chemical tanker market, these modern, dual-fuel ships will lower the age profile and carbon intensity of our fleet while offering more flexibility in our core 33,000-dwt segment.”
The company has been renewing its fleet with newbuildings in recent months.
There are 12 tankers on order in China: six 38,000-dwt stainless-steel vessels for NYK Stolt Tankers, its joint venture with Japan’s NYK, at Nantong Xiangyu Shipbuilding; and six more of the same size for its own account at Wuhu Shipyard.
The owner is also chartering in six ammonia-ready tankers from the Saverys family’s Compagnie Maritime Belge.
Asset-light
But Lange said: “This transaction also demonstrates our commitment to asset-light fleet replacement … to enhance profitability and reduce our balance sheet intensity.”
In March, SFL bought three LR2 tanker resales from Fredriksen’s private fleet in a $230m deal.
The product carriers will be chartered out long-term to a “world-leading energy and commodities company”, the sale-and-leaseback specialist said.
The trio is being built in China, with the latest eco-design features, SFL added.
They are likely to be the three 115,000-dwt vessels listed in the fleet of Fredriksen’s Seatankers that are under construction at New Times Shipbuilding.
The sellers are affiliates of Fredriksen’s Hemen Holding.
SFL said the purchase price was in line with valuations by independent shipbrokers.
