Gulf investors grab stake in Dubai-based rig builder

A share issue and sale of shares worth a combined total of NOK 506 million (US $80 million) has been successfully concluded by Dubai’s Maritime Industrial Services (MIS).

The placement and the sale of shares were done in one transaction to private and institutional investors from Norway, US, the UK, the UAE and Saudi Arabia. MIS is now listed on the Norwegian Over the Counter (OTC) market.

The deal sees half of MIS now owned by an investment consortium, led by Gulf Capital. Gulf Capital’s 21% stake in the company makes it the largest shareholder in MIS.

“By investing in MIS, Gulf Capital will receive unique exposure to the fast growing regional oil and gas offshore industry,” said Karim El Solh, CEO of Gulf Capital.

Proceeds from the transaction will be used to fund MIS’s expansion into new build jack-up rigs.

The company is currently building two Friede & Goldman designed Super M2 300ft jack-ups for Mosvold Jackup ASA. The construction work is under way in the company’s 200 000 m² yard and MIS anticipates receiving orders to deliver a further 5 jack-ups by 2010.

Based on the new jack-up orders and a record level of traditional works, MIS also announced its net earnings for the third quarter were US $4 million compared to US $1.7 million in 2005, and that nine-month earnings were a record US $15.2 million.

“MIS earnings through three quarters are a record and an indication of our potential for growth after entering into the new building market for offshore jack-up drilling rigs,” said Jerry Smith, managing director of MIS.

“With the financial backing of Gulf Capital and the other investors in the latest offering, the support of our board and our established track record in the onshore and offshore engineering and fabrication industries, we are confident that MIS will be able to capitalise on the opportunities presented by the fast growing oil and gas industry in the region.”