Abu Dhabi, UAE — AD Ports Group (ADPORTS) has purchased 10 offshore vessels for $200 million that will bolster offshore operations in the Middle East and Southeast Asia.
The investment in the diversified fleet with an average age of around nine years is significantly less than the industry average.
All ten 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 (AWB’s), representing an attractive offering, particularly about upcoming major offshore projects in the Middle East where there is a shortage of quality assets.
AD Ports Group said it will take over well-established contracts with blue chip clients in the OG industry, National Oil Companies, and International Oil Companies in Southeast Asia and the Middle East, expecting a utilization of around 95 percent of the existing contracts for the foreseeable future.
The investment is expected to generate more than $70 million annually in revenue in the next three to five, and the transaction would imply a 12-month forward EV/EBITDA of around five times.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “We recognize 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.”