SFL Orders Three Newbuilds for ~$365M, Adding $333M to Charter Backlog
SFL sits 81% above its 52-week low of $6.985.
Summary
SFL is buying two 8,800 TEU container ships and one 93,000 cbm very large ammonia carrier for about $365M, with deliveries in 2027 and 2028. The vessels come with minimum 5- to 8-year time charters that add roughly $333M to fixed-rate backlog, including purchase options and profit share on the container ships and an optional sale with profit share on the VLAC. That backlog now exceeds $1.6B added year-to-date, following the $750M Hapag-Lloyd extensions in September and the $216M two-VLAC order in early October. The trade-off is timing: no EBITDA from these ships until 2027-2028, while the $365M capex commitment lands before any cash flow. Funding terms and charter rates are the missing pieces that would sharpen the return picture.
At the time of this announcement, SFL was trading at $12.65 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $6.99 to $13.98. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.