GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS

12 Months Ended

Dec. 31, 2024

Component of Operating Income [Abstract]

GAIN ON SALE OF ASSETS AND TERMINATION OF CHARTERS

The Company has recorded gains on sale of assets as follows:


	Year ended December 31,
(in thousands of $)	2024	2023	2022
Gain on sale of vessels and rig	5,374	18,670	13,228

During the year ended December 31, 2024, the 1,700 twenty-foot equivalent unit (“TEU”) container vessel Green Ace was sold and delivered to an unrelated third party. The Company received net sale proceeds of $10.8 million and recorded a gain of $5.4 million on the disposal.

Also, during the year ended December 31, 2024, the two 5,800 TEU container vessels MSC Margarita and MSC Vidhi, which were previously accounted for as investments in sales type leases, were sold to unrelated third parties. The Company received net sale proceeds of $12.0 million and recorded a loss of $17.0 thousand on their disposal.

During the year ended December 31, 2023, the very large crude carrier (“VLCC”) Landbridge Wisdom, which was previously accounted for as an investment in leaseback asset, was sold and delivered to Landbridge following exercise of the applicable purchase option in the charter contract. The Company received net sale proceeds of $52.0 million and recorded a gain of $2.2 million on the disposal.

During the year ended December 31, 2023, the two Suezmax tankers, Glorycrown and Everbright, which were trading in the spot market, were sold to an unrelated third party. The Company received net sale proceeds of $84.9 million and recorded a gain of $16.4 million on the disposal.

Also, during the year ended December 31, 2023, the two chemical tankers, SFL Weser and SFL Elbe, which were trading in the spot market, were sold to an unrelated third party. The Company received net sale proceeds of $19.4 million and recorded a gain of $30.0 thousand on the disposal. The Company recorded an impairment loss of $7.4 million prior to the disposal.

During the year ended December 31, 2022, the two VLCCs, Front Energy and Front Force, which were previously accounted for as direct financing leases, were sold to an unrelated third party. A gain of $1.5 million was recorded on the disposal of the vessels. The Company received net sale proceeds of $65.4 million and an additional compensation payment of $4.5 million from Frontline Shipping for the early termination of the corresponding charters. (See Note 25: Related Party Transactions).

Also during the year ended December 31, 2022, the 1,700 TEU container vessel, MSC Alice, which was previously accounted for as a sales-type lease, was sold and delivered to Mediterranean Shipping Company S.A. and its affiliate Conglomerate Shipping Ltd. (collectively “MSC”) following execution of the applicable purchase obligation in the charter contract. The Company received proceeds totaling $13.5 million and recognized a net gain of $11.7 million on the disposal.