Abu Dhabi’s Al Seer Marine acquires 2 VLCCs for $110mn to expand its fleet

By Shilpa Annie Joseph, Official Reporter
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MV Twin Castor
Representational Image

Al Seer Marine, an Abu Dhabi-listed marine company engaged across multiple marine sectors, has acquired two Very Large Crude Carriers (VLCC) worth $110 million (Dh404 million) in order to expand its fleet.

The company said that 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), allowing for crude oil cargo, provisions, lubricant, and fuel.

Under current market conditions, these newly acquired tankers are expected to provide estimated returns of more than 20 percent.

Mr. Guy Neivens, CEO of Al Seer Marine said that, “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.”

“With 19 percent of the 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,” Mr. Neivens added.

Al Seer Marine has increased its fleet by acquiring 9 ships and is analyzing expansion initiatives in crude and product tankers, gas tankers, and dry bulk shipping sectors, with short-term plans of acquiring 10 to 15 ships in 2022.

The company recently acquired two liquified petroleum gas (LPG) tankers valued at a combined $66 million (AED 246 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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