Al Seer Marine seeks to close $10bn worth of deals in next 10 years

Abu Dhabi-listed company teams up with Damen Shipyards and Singapore’s DTec in growth push

Abu Dhabi's Al Seer Marine expects the global marine vessel market to grow to $188.57 billion in 2028, from $170.75bn in 2021. Photo: IHC
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Al Seer Marine, a subsidiary of Abu Dhabi-based International Holding Company (IHC), aims to close Dh36.7 billion ($10bn) worth of maritime deals in the next 10 years to boost growth.

The company entered into a partnership with Netherlands-based maritime company Damen Shipyards and Singapore’s DTec Industries as it continues to tap into new markets.

As part of the joint venture, the companies will work with partners in the Middle East and other countries to sell, build and maintain high-quality marine vessels around the world, Al Seer Marine said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

“The collaboration with Damen Shipyards and DTec aligns well with Al Seer Marine's strategy in becoming a global brand in developing world-class marine vessels,” said Guy Neivens, chief executive of Al Seer Marine.

Al Seer Marine, which had assets worth Dh11.5bn at the end of June, has a diversified portfolio and offers services such as management and training, high-tech boatbuilding, unmanned systems development and manufacturing.

It is rapidly expanding in the commercial shipping segment and plans to acquire up to 15 ships in 2022 to boost its operations as global trade continues to pick up from the coronavirus pandemic-induced slowdown.

The company this year acquired two liquefied petroleum gas tankers valued at a combined Dh246 million and has large gas carriers currently under construction as part of a joint venture with BGN International. It is also expanding its freight solutions for bulk cargo globally to meet growing demand.

“With the current market indicators, we are confident this strategic joint venture will play a key role in Al Seer Marine's growth, which will be a great added value to our shareholders,” Mr Neivens said.

The global marine vessel market is projected to grow to $188.57bn in 2028, from $170.75bn in 2021, according to the company.

Founded in 1927, Damen Shipyards is focused on design, shipbuilding and ship repair across a range of sectors, while DTec offers services in “industrial participation and finance”, primarily in the maritime sector, according to the filing.

Al Seer Marine reported a more than 100 per cent jump in its second-quarter profit to Dh807.3m as revenue during the period more than doubled to Dh303.8m.

IHC is majority-owned by Abu Dhabi's PAL group of companies. The conglomerate includes more than 30 entities with 22,345 employees and is diversifying its holdings across sectors such as property, agriculture, health care, food and beverage, utilities, retail and leisure.

Updated: October 17, 2022, 10:20 AM
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