Abu Dhabi: AD Ports Group purchases 10 offshore vessels to bolster regional operations

Image: AD Ports Group

AD Ports Group has purchased 10 offshore vessels, which will boost offshore operations in the Middle East and Southeast Asia, at an investment of around $200m.

The aim was to consolidate a well-maintained, diversified fleet with an average age of around nine years, significantly less than the industry average.

All 10 vessels are expected to be delivered in Q4 2023 with financial consolidation taking place from Q1 2024 onwards.

The acquisitions, from international offshore supply vessel owner and operator E-NAV, encompass a variety of offshore vessel types, including multipurpose supply vessels (MPSVs), platform supply vessels (PSVs), diving support vessels (DSVs) and accommodation workboats (AWBs), representing an attractive offering, particularly in relation to upcoming major offshore projects in the Middle East where there is a shortage of quality assets.

The group’s clients in the energy sector can expect to benefit from the enhanced capabilities, capacity, and increased geographic footprint in the offshore segment that the investment will bring.

The acquisition supports AD Ports strategy to balance its portfolio

The transaction also supports AD Ports Group’s strategy to continue to balance its portfolio of maritime businesses with assets and services exposed to different market forces and cycles, thereby limiting its performance volatility, amidst forecasts of an upward trend in the offshore O&G market over the medium-long term.

AD Ports Group will take over well-established contracts with blue chip clients in the oil and gas industry, national oil companies, and international oil companies in Southeast Asia and the Middle East, expecting a utilisation of around 95 per cent of the existing contracts for the foreseeable future.

The investment is expected to generate more than $70m per annum in revenue in the next three to five years.

Captain Mohamed Juma Al Shamisi, MD and group CEO, of AD Ports Group, said: “I am pleased to announce this key investment, the expansion of our offshore fleet is a significant move in our strategic objective to fortify and enhance our Middle East and Southeast Asia footprint.

“We recognise the increasing demand in the energy sector, thereby, through bolstering our fleet, our group is better positioned to demonstrate our role as a premier offshore service provider within these regions, whilst meeting the diverse and growing demands of our customers.”