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Al Seer Marine (ASM), a subsidiary of Abu Dhabi-based International Holding Company (IHC), has acquired two 320,000 dwt Very Large Crude Carriers (VLCCs) to add its fast growing fleet.
With a total value of AED404 million (US$ 110 million), the crude oil tankers, Twin Castor and Twin Pollux, are expected to provide estimated returns of more than 20 per cent, ASM states. This is largely due to a forecasted global increase in tonne mile demand fuelled by an upturn in crude oil production by 4 per cent in 2022, and a declining global VLCC orderbook.
Al Seer Marine has recently increased its fleet by acquiring nine ships and is analysing further expansion options in the crude and product tanker, gas tanker and dry bulk shipping sectors. Short-term plans include acquiring 10 to 15 ships in 2022 alone. The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined AED246 million and has two 86,000 m3 Very Large Gas Carriers (VLGCs) 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, and we expect to see strong returns as oil demand recovers and ship recycling returns to normal levels. 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 and continue our trajectory in becoming one of the largest commercial shipping fleets in the Middle East and Asia regions.”
