SFL Corporation Ltd. (NYSE: SFL) (“SFL” or the “Company”) announces that it has agreed to acquire a newbuild 308,000 dwt crude oil carrier, or “VLCC”, in combination with a 7-year bareboat charter, adding nearly $60 million to SFL’s fixed rate charter backlog.The vessel is expected to be delivered from the shipyard in China in the second quarter, and will have full cash flow effect in Q3 2020. The net purchase price will be $65 million, which is significantly below current broker estimates for VLCC resales, effectively providing SFL with a very attractive risk profile.SFL’s chartering counterparty, an affiliate of the Landbridge Group, has secured a 3-year sub charter to an oil major, providing good cash flow visibility. There will be purchase options for the charterer during the charter period, first time after three years, and at the end of the charter there is a purchase obligation.SFL will fund the acquisition with a $50 million non recourse bank debt facility at very attractive terms, and net cash flow after debt service during the first three years is estimated to more than $4 million per year on average.Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “Amidst the recent market volatility, we see attractive investment opportunities in our core markets. Some of the best investments can be made when the general market is less competitive, and staying focused and able to execute on accretive growth opportunities through the market cycles is a key differentiating factor.With a versatile toolbox, including time charters, bareboat charters and senior financing structures, SFL can provide prospective customers with competitive tailor made solutions, whilst at the same time creating shareholder value on the back of our strong balance sheet and our unique access to attractively priced capital.”May 20, 2020The Board of Directors
SFL Corporation Ltd.
Hamilton, BermudaInvestor and Analyst Contacts:
Aksel Olesen, Chief Financial Officer, SFL Management AS
+47 23 11 40 36
André Reppen, Senior Vice President, SFL Management AS
+47 23 11 40 55
Media Contact:
Ole B. Hjertaker, Chief Executive Officer, SFL Management AS
+47 23 11 40 11About SFLSFL has a unique track record in the maritime industry and has paid dividends every quarter since 2004. The Company’s fleet of more than 80 vessels is split between tankers, bulkers, container vessels and offshore drilling rigs. SFL’s long term distribution capacity is supported by a portfolio of long term charters and significant growth in the asset base over time. More information can be found on the Company’s website: www.sflcorp.comCautionary Statement Regarding Forward Looking StatementsThis press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including SFL management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although SFL believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, SFL cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand resulting from changes in OPEC’s petroleum production levels and world wide oil consumption and storage, developments regarding the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission. 
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