SFL seals Volkswagen charter extensions

John Fredriksen-controlled SFL Corporation has sealed a long-term charter extension deal with German carmaker Volkswagen.

The New York-listed diversified owner has fixed its 6,500 ceu SFL Composer and SFL Conductor for at least three years, adding around $155m to its fixed-rate charter backlog, which as of March 31 stood at about $3.7bn.

The extension and new charter rate will become effective when two other newbuild dual-fuel car carriers are delivered into their 10-year charters to Volkswagen, currently estimated for Q3 and Q4 2023. 

SFL has seven car carriers, including four 7,000 ceu vessels under construction with long-term contracts attached. The remaining two are backed by charters with Japan’s K Line until 2034.

The company has had a very busy quarter with more than $1bn in new financings, including the newbuild car carrier program, sustainability-linked notes and refinancing of its drilling rigs.

“With the latest facilities concluded, the company’s newbuild and capital expenditure program is fully financed, and most of our financings with near-term maturity are refinanced with new long-term loans,” SFL said in its quarterly earnings report, which revealed a net profit of $6.3m.