IHC’s Al Seer Marine buys two tankers for $67m amid growing LPG demand

The company plans to acquire up to 15 ships in 2022 as it expands its operations globally

The 'MT Alkaid', one of the tankers acquired by Al Seer Marine tankers. Al Seer Marine

Al Seer Marine, a subsidiary of Abu Dhabi-based International Holding Company, bought two liquefied petroleum gas tankers worth Dh246 million ($67m) as it seeks to tap into higher demand for charter vessels to transport petroleum products globally.

Al Seer Marine purchased LPG tankers MT Alcor and MT Alkaid in co-operation with a number of international banks, including ING and Bank of America, it said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.

The tankers have a capacity of 20,700 cubic metres each.

“The company is developing a robust pipeline of clients and is moving rapidly to meet fast-growing demand for charters,” said chief executive Guy Neivens.

“These transactions are building significant scale in our operations and providing attractive returns to the company and its shareholders.”

LPG, a refined product, is in high demand in Asia, mainly as a cooking fuel stored in cylinders for stoves, as well as a propellant, refrigerant, vehicle fuel and as a feedstock for the petrochemicals industry.

Al Seer Marine is expanding operations and plans to acquire up to 15 ships in 2022 as it seeks to become a major global player in the commercial shipping segment.

Last year, it formed a Dh624m joint venture with energy company BGN International to acquire a portfolio of very large gas carriers that are used for transporting LPG worldwide.

Al Seer Marine reported a more than eightfold jump in its first-quarter profit to Dh75.6m as revenue grew close to 41 per cent to Dh171m, according to its financial statement.

The company had assets worth Dh7.37 billion at the end of March 2022.

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.