SFL Corporation Secures $750 Million Charter Extension with Hapag-Lloyd
SFL Corporation Ltd. (NYSE:SFL) has secured a seven-year charter extension with Hapag-Lloyd AG for six container vessels, adding up to $750 million in backlog and pushing the company's total fixed-rate charter backlog to approximately $4.6 billion. The agreement ensures firm rates through 2035-36, enhancing SFL’s revenue visibility into the mid-2030s while reinforcing its relationship with one of the world’s top five container shipping lines. The deal supports SFL's ongoing expansion in 2026 and follows a strong second-quarter performance. The company reported $201 million in topline revenue, up from Q1, alongside an adjusted EBITDA of $130 million and net income of $34 million. A dividend of $0.22 per share was declared for the 90th consecutive quarter. Despite these positives, SFL faces counterparty concentration risk due to its growing exposure to Hapag-Lloyd. Additionally, market cyclicality in container shipping remains a concern as volatility could impact future earnings.
Topics: backlog growth charter agreements container vessels shipping