HomeEnergy & SustainabilityUAE’s Al Seer Marine acquires third VLCC vessel valued at $107.8 mn
By Economy Middle East
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October 26, 2022 10:35 am

UAE’s Al Seer Marine acquires third VLCC vessel valued at $107.8 mn

Company's total global VLCC deal value hits AED 900 mn in 4 months
Al Seer Marine
Al Seer Marine

UAE’s Al Seer Marine Supplies & Equipment Company, and International Holding Company (IHC) subsidiary, has announced its third mega VLCC acquisition valued at 396 million dirhams ($107.8 million), bringing its total VLCC fleet value to 900 million dirhams in four months.

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

Guy Neivens, Chief Executive Officer 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 percent in 2023, exacerbated by rising production and the reorganization of some of the trade routes; we expect our fleet to provide returns on equity of over 20% over the lifecycle of the fleet.”

Today, Al Seer Marine’s fleet is valued at more than 1.2 billion dirhams 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 259 million dirhams 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.