Guangzhou Shipbuilding International has delivered the LNG-powered pure car and truck carrier (PCTC) to the New-York listed shipowner SFL Corporation.

As informed, the company delivered the car carrier Emden earlier today. The ship will sail under a long-term charter to Volkswagen Group and is amongst SFL Corporation’s four 7,000 ceu LNG-powered PCTCs previously ordered.

SFL has a car carrier fleet of seven car carriers, of which four are currently under construction.

The SFL car carrier fleet generated approximately $6.4 million of charter hire in the quarter ended June 30, 2023.

To remind, SFL Corporation ordered four LNG dual-fuel car carrier newbuildings, with expected delivery in second half of 2023 and in the first half of 2024.

The vessels upon delivery will have ten-year time charters.

As it is reported in its financial results for the Q2, the shipowner, during that period agreed to extend the Volkswagen charters, for the two 6,500 ceu car carriers SFL Conductor and SFL Composer, for a minimum period of three years, adding approximately $155 million to the fixed rate charter backlog.

The shipowner, with investments in the tanker, bulker, container, car carrier and offshore segments and a significant charter backlog, said “the extension period and rate adjustment will be effective from the time the two dual-fuel newbuild vessels are delivered on their respective 10-year charters, also to Volkswagen, currently estimated to be Q4 2023 and Q1 2024”.

The estimated Ebitda from the two vessels is expected to increase from approximately $9 million currently to $47 million per year.