SFL Offloads VLCC Veteran

TankerIllustration; Image Courtesy: PxHere under CC0 Creative Commons license

Bermuda-based shipowner Ship Finance International Limited has agreed to sell the 2001-built VLCC Front Ariake to an unnamed third party.

Delivery to the new owner is expected later this month, and the net sales price will be approximately USD 20.7 million, including USD 3.4 million in the form of an interest-bearing loan note from Frontline Ltd.

The book value of the vessel is set at around USD 27.6 million, thus an impairment is expected to be recorded in the company’s third quarter results.

Divesting of older vessels is part of SFL’s fleet renewal and diversification strategy.

In July, SFL sold three 2002-built VLCCs to ADS Crude Carriers Ltd, a newly established company in which Ship Finance had acquired a 17 pct interest.

Offloading of older tonnage is aimed at making room for new fleet additions. Namely, over the past six months, Ship Finance took delivery of over 19 vessels with long-term charters, increasing its fixed charter backlog by nearly USD 600 million.

The latest sale leaves the company’s VLCC fleet to four ships, chartered out to a subsidiary of Frontline Ltd.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

Europort Romania

Europort Romania is the premier maritime networking event of the Black Sea and will connect maritime technology and service suppliers with high level professionals from Romania and surrounding shipbuilding markets.

More info

read more >

MARITIME INDUSTRY 2020

The future of the maritime sector is the point of focus during Maritime Industry 2020.

read more >