Al Seer Marine, a subsidiary of Abu Dhabi-based International Holding Company, bought two very large crude carriers worth Dh404 million ($110m) as the company continues to expand its fleet amid higher demand for crude globally.
The new vessels, MV Twin Castor and MV Twin Pollux, each have a carrying capacity in the range of 320,000 deadweight tonnage to transport crude oil, provisions, lubricant and fuel, the company said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
The newly acquired tankers are expected to provide estimated returns of more than 20 per cent to the company amid higher demand and an increase in crude oil production.
“This acquisition of two new crude oil tankers is strategically driven given the current market conditions, and we expect to see strong returns as oil demand recovers and ship recycling returns to normal levels,” Guy Neivens, chief executive of Al Seer Marine, said.
“With 19 per cent of existing global crude carrier supply dated at over 18 years old, they will be due for scrapping or recycling in the next few years. This will cause the global fleet numbers to shrink even further, presenting an opportune time for Al Seer Marine to expand.”
Al Seer Marine plans to acquire up to 15 ships in 2022 as it seeks to become a major global player in the commercial shipping segment.
The company recently acquired two liquefied petroleum gas tankers valued at a combined Dh246m and has very large gas carriers currently under construction as part of a joint venture with BGN International.
The company, which had assets worth Dh7.37 billion at the end of March 2022, has a diversified portfolio and offers services, including management and training, construction of vessels, high-tech boatbuilding, unmanned systems development and manufacturing.
It 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.
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.