John Fredriksen-backed SFL is investing $363m in four LNG dual-fuel pure car and truck carriers, expanding its exposure to a sector where shipyard availability remains constrained.

The four 7,000 ceu newbuildings are scheduled for delivery in 2029. Two have been chartered to a major Asia-based car manufacturer for five years from delivery, with options that could extend the employment by a further five years.

The firm charter period will add approximately $150m to SFL’s backlog. If the extension options are exercised, the contribution could rise to about $300m.

The other two vessels have not yet secured employment. Ordering open newbuildings represents a change from SFL’s traditional reluctance to contract ships without charters already in place. Management said discussions concerning the available pair are under way, citing favourable car carrier market fundamentals and shipyards that are largely booked through to 2030.

SFL has not identified the shipbuilder. Shipbuilding databases indicate that the programme is divided equally between Guangzhou Shipyard International and Yantai CIMC Raffles.

The investment marks a second series of modern 7,000 ceu car carriers for the company. SFL’s earlier four-vessel LNG dual-fuel programme resulted in two ships being employed by Volkswagen and two by K Line. Those vessels were delivered in 2023 and 2024.

The earlier quartet involved aggregate yard commitments of around $304.5m, compared with $363m for the latest order. Based on the disclosed totals, the average cost has increased from approximately $76m to nearly $91m per vessel.

SFL currently operates seven car carriers. Delivery of the four newbuildings will expand its car carrier portfolio to 11 vessels. At the end of the second quarter, the segment’s charter backlog stood at $578m, with an average remaining charter term of 5.9 years.

The company has also secured three-year extensions for two older 6,500 ceu car carriers after their existing Volkswagen charters expire. Those agreements add another $83m to backlog.

Across its wider fleet, SFL has approximately $1.2bn in remaining capital expenditure commitments. The company has raised roughly $100m in new equity during the year and reported available liquidity of $273m at the end of June.