Al Seer Marine PJSC (ASM), a subsidiary of International Holding Company (IHC), has announced expansion of its fleet with the acquisition of two Very Large Crude Carriers (VLCCs).
The acquisition of the two VLCCs is valued at $109 million (AED 404 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), Wam reported.
The newly acquired tankers are expected to provide estimated returns of more than 20 percent under the current market conditions.
The shipping market is forecasted to see a global increase in tonne mile demand fueled by an uptick of crude oil production by 4 percent in 2022, and the declining global VLCC orderbook, which is down to 5.8 percent of the global fleet of 440 million DWT of crude oil tankers.
“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,” Guy Neivens, CEO of Al Seer Marine, said.
Neivens said with 19 percent 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.
With the addition of the two new oil tankers, ASM has increased its fleet by 9 ships.
The company is planning further expansion initiatives, with short-term targets to acquire 10 to 15 ships this year in crude and product tankers, gas tankers, and dry bulk shipping sectors.
The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined AED246 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.
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