Al Seer Marine, an International Holding Company (IHC) subsidiary, announced expansion of its shipping fleet with the acquisition of a mega VLCC (very large crude carrier) for AED396 million.
The latest acquisition will take the company’s total VLCC fleet value to AED900 million in four months, and its ship fleet to 10.
Al Seer Marine said on Tuesday it has taken delivery of its third VLCC – Acrux (previously Elandra Everest) – this month.
Guy Neivens, chief executive officer of Al Seer Marine, said the demand for tankers was strong, with VLCC earnings having risen consistently since June and continuing its upward trajectory.
“The global tanker demand is expected to grow by about 5 percent in 2023, driven by rising production and the reorganisation of some trade routes. We expect our fleet to provide returns on equity of over 20 percent over the lifecycle of the fleet,” Neivens said.
“We have massively grown our operation in the past 10 months and with the Acrux acquisition, we are on track to become one of the key players in the global maritime sector,” he added.
Al Seer Marine’s fleet, currently valued at more than AED1.2 billion, is expected to grow with the company’s short-term plans of acquiring more than two ships in the next three months.
In addition to the three VLCC, Al Seer Marine recently acquired two liquefied petroleum gas (LPG) tankers valued at a combined AED259 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.
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