Al Seer Marine acquires VLCC’s valued at Dh404m for growing global crude oil market

Acquisition on target with Al Seer Marine’s strategic expansion plans to become major global player, acquiring up to 15 ships in 2022



New vessels have a combined carrying capacity of 640,000DWT and tankers expected to provide IRR of greater than 20 per cent. — Supplied photo
New vessels have a combined carrying capacity of 640,000DWT and tankers expected to provide IRR of greater than 20 per cent. — Supplied photo

By Staff Report

Published: Mon 20 Jun 2022, 4:37 PM

Al Seer Marine (ASM), a global player across multiple marine sectors and subsidiary of International Holding Company (IHC), has acquired two Very Large Crude Carriers (VLCC) for its growing fleet.

With a total value of Dh404 million, the crude oil tankers, MV Twin Castor and MV Twin Pollux, each have a carrying capacity in the upper range of 320,000 deadweight tonnage (DWT), allowing for crude oil cargo, provisions, lubricant and fuel.

Under current market conditions, these newly acquired tankers are expected to provide estimated returns of more than 20 per cent. This is largely due to a forecasted global increase in tonne mile demand fueled by an uptick of crude oil production by four per cent in 2022, and the declining global VLCC orderbook, which is down to 5.8 per cent of the global fleet of 440 million DWT of crude oil tankers.

Al Seer Marine has increased its fleet by acquiring 9 ships and is analysing expansion initiatives in crude and product tankers, gas tankers, and dry bulk shipping sectors, with short-term plans of acquiring 10 to 15 ships in 2022. The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined Dh246 million, and has two 86,000 cubic metres Very Large Gas Carriers (VLGC) currently under construction as part of a joint venture with BGN International.

Guy Neivens, CEO of Al Seer Marine, said this acquisition of two new crude oil tankers is strategically driven given the current market conditions.

“We expect to see strong returns as oil demand recovers and ship recycling returns to normal levels. With 19% 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 and continue our trajectory in becoming one of the largest commercial shipping fleets in the Middle East and Asia regions,” he said.

Al Seer Marine is already a leader in marine services in the region and has been expanding rapidly in the commercial shipping segment.

Earlier in the year, Al Seer Marine launched its additive manufacturing business unit, leveraging the latest additive manufacturing technologies for the company’s in-house manufacturing of unmanned vessels and vehicles. The business unit will also develop large-scale additive manufacturing (LSAM) products and parts that are in high-demand regionally and globally.

— business@khaleejtimes.com


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