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    The Bull Case For SFL (SFL) Could Change Following Tanker Sales And Fleet Renewal Reinvestment – Learn Why

    Simply Wall St·12/20/2025 06:22:31
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    • SFL Corporation has recently sold two 2015-built Suezmax tankers to Koch Industries for about US$57,000,000 each, expecting an aggregate book gain of roughly US$23,000,000 while also ending charters on two 2020-built Suezmax vessels.
    • The company plans to channel part of the US$114,000,000 proceeds into younger, more fuel-efficient ships, underscoring its active fleet renewal and capital recycling approach in the current charter market.
    • We’ll now examine how reinvesting tanker-sale proceeds into younger, fuel-efficient vessels could influence SFL’s fleet renewal-focused investment narrative.

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    SFL Investment Narrative Recap

    To own SFL, you need to believe in its ability to recycle capital across shipping segments while managing heavy capex, high dividends and exposure to fossil-fuel assets. The Suezmax sales fit that capital recycling story, but do not fundamentally change the near term tension between funding fleet renewal and keeping the dividend intact, or the risk that weaker charter markets could pressure already thin earnings.

    The most relevant recent announcement here is SFL’s decision on 11 November 2025 to maintain its US$0.20 per share quarterly dividend after a year of volatile earnings. Against that backdrop, selling older tankers at a book gain and reinvesting into younger, fuel efficient ships sits right beside the core catalyst many shareholders watch most closely: whether SFL can support both fleet renewal and its high cash payout.

    Yet alongside the appeal of younger vessels and ongoing dividends, investors should be aware of the mounting cost and regulatory risk around fleet renewal and environmental compliance...

    Read the full narrative on SFL (it's free!)

    SFL's narrative projects $742.1 million revenue and $132.0 million earnings by 2028.

    Uncover how SFL's forecasts yield a $9.42 fair value, a 21% upside to its current price.

    Exploring Other Perspectives

    SFL 1-Year Stock Price Chart
    SFL 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span a wide range, from US$2.59 to US$9.43 per share, showing how far opinions can stretch. When you set those against SFL’s need for heavy ongoing fleet renewal and environmental compliance spending, it underlines why you may want to compare several different viewpoints before deciding how this business fits into your portfolio.

    Explore 4 other fair value estimates on SFL - why the stock might be worth less than half the current price!

    Build Your Own SFL Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your SFL research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
    • Our free SFL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SFL's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.