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Abu Dhabi’s Al Seer Marine acquires third VLCC valued at Dhs396m

The strategic acquisition of VLCC Acrux has increased Al Seer Marine’s fleet value to more than Dhs1.2bn

by Gulf Business

October 26, 2022

International Holding Company subsidiary, Al Seer Marine has acquired its third mega very large crude carrier (VLCC) valued at Dhs396m, bringing its total VLCC fleet value to Dhs900m in four months.

Al Seer Marine has taken delivery of VLCC Acrux (previously Elandra Everest), increasing its total fleet to 10 ships as the company continues analysing its expansion initiatives in crude and product tankers, gas tankers, and dry bulk shipping sectors in 2022.

Guy Neivens, CEO of Al Seer Marine, said: “The sentiment for tankers is 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 per cent in 2023, exacerbated by rising production and the reorganisation of some of the trade routes; we expect our fleet to provide returns on equity of over 20 per cent over the lifecycle of the fleet.”

Today, Al Seer Marine’s fleet is valued at more than Dhs1.2bn and is expected to grow with the company’s short-term plans of acquiring more than 2 ships in the next three months. In addition to the three VLCC, Al Seer Marine recently acquired two liquified petroleum gas (LPG) tankers valued at a combined Dhs259m 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.

“Al Seer Marine continues to strengthen; we have massively grown our operation in the past 10 months; with the Acrux acquisition, we are on track to become one the key players in the global maritime sector,” Neivens added.

In recent news, Al Seer Marine entered a strategic joint venture with maritime solutions Dutch company, Damen Shipyards, and Singapore-based DTec Industries.

The strategic joint venture will consider ventures and local partnerships to sell, build and maintain high-quality and cost-effective marine vessels in the global markets.

Read: IHC subsidiary Al Seer Marine enters strategic JV to build, sell and maintain marine vessels