International Holding Company (IHC), the owner of Al Seer, said that under current market conditions, the newly acquired tankers were expected to provide estimated returns of more than 20%.
With a total value of $110 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 a crude oil cargo, provisions, lubricant, and fuel. “This is largely due to a forecasted global increase in tonne-mile demand fueled by an uptick of crude oil production by 4% in 2022, and the declining global VLCC order book, which is down to 5.8% of the global fleet of 440m dwt of crude oil tankers,” it said.
The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined $67 million and has two 86,000 cubic meters of Very Large Gas Carriers (VLGC) currently under construction as part of a joint venture with BGN International. “With 19% of existing global crude carrier supply dated at over 18 years old, [such vessels] will be due for scrapping or recycling in the next few years,” he said. “This will cause 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.”
The deal underscores Al Seer Marine’s expansion plans, which target the acquisition of up to 15 ships in 2022. The Abu Dhabi Securities Market (ADX) listed entity now has 1,200 employees and made its initial public offering in August last year, becoming the sixth IHC subsidiary to do so. 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.
IHC’s 2020 Annual Report said Neivens had over 36 years of experience in asset management within UAE government departments and that in 2003, he founded Al Seer Marine Supplies & Equipment Company and continued to serve as CEO of the company, which then had over 1,000 employees. “He has overseen five new projects, collectively worth over $2.5 billion,” it said. The business unit will also develop large-scale additive manufacturing (LSAM) products and parts that are in high-demand regionally and globally.
