Al Seer Marine, a subsidiary of International Holding Company (IHC), has acquired two Very Large Crude Carriers (VLCC) for its growing fleet.
With a total value of AED 404 million ($109 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), 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. This is largely due to a forecasted global increase in ton 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.
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 AED246 million, and has two 86,000 cubic meters Very Large Gas Carriers (VLGC) currently under construction as part of a joint venture with BGN International.
Guy Neivens, CEO of Al Seer Marine, said, “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 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.”