SFL Orders Two 93,000 cbm VLAC Vessels, Signs Charters Worth $162 Million

SFL Corporation announced the order of two 93,000 cubic meter Very Large Ammonia Carriers (VLAC), with a total investment of $216 million and delivery scheduled for the second quarter of 2028. At the same time, the company signed long-term charter agreements for both vessels with an investment-grade European oil major, which will add at least $162 million to its fixed-rate charter backlog.

The vessels will feature dual-fuel propulsion and technology aimed at fuel efficiency and cargo optimization. The initial charter duration is still to be determined within the next six months, which could raise the committed amount above the announced minimum. In addition, the charterer will have the option to extend the agreements by up to four additional years.

Ole B. Hjertaker, CEO of SFL Management, described the project as an investment that adds assets in a new segment for the company. According to the executive, including acquisitions and charter extensions announced during the year, SFL added more than $1.3 billion to its fixed-rate charter backlog in 2026.

With this move, SFL enters the gas carrier segment and expands a fleet that already includes tankers, bulk carriers, container ships, car carriers and offshore drilling rigs. The container ship fleet, made up of 24 operating vessels and six newbuildings, accounted for the largest share of the company's revenue in the second quarter, followed by its 16 tankers and 7 car carriers.

Last month, the company had added $750 million to its contracted revenue backlog after agreeing with Hapag-Lloyd on seven-year extensions for six 15,400 TEU container ships, which will keep those vessels operating with the German carrier at fixed rates through 2035-36.

Following the announcement of the order, analysts began speculating about SFL's corporate future. Eirik Haavaldsen, head of research at Pareto Securities, suggested that the order for the two ammonia carriers could represent a first step toward an eventual merger between SFL and Flex LNG, both companies linked to businessman John Fredriksen.