Abu Dhabi’s Al Seer Marine has struck a joint venture deal with Damen Shipyards and financier DTec Industries.
Al Seer, owned by International Holding Co. (IHC), aims to cash in on the recent surge of interest in shipbuilding. The company announced its move in a statement to the Abu Dhabi stock market.
During the pandemic, demand for new vessels ebbed. Over the last 12 months, though, the market recovery has driven a swathe of contracts.
“With the current market indicators, we are confident this strategic joint venture will play a key role in Al Seer Marine’s growth which will be a great added value to our shareholders,” Al Seer CEO Guy Neivens said.
The executive predicted the global marine vessel market would grow from $170.75 billion in 2021 to $188.57bn in 2028.
“The collaboration with Damen Shipyards and DTec aligns well with Al Seer Marine’s strategy in becoming a global brand in developing world-class marine vessels,” he said.
Al Seer said the venture aims to “help position the UAE as the industry centre of excellence”. The joint venture aims to sell, build and maintain marine vessels around the world, it said.
Damen is based in the Netherlands, but has operations in 120 countries. DTec, meanwhile, is based in Singapore and provides finance for various sectors, but with a focus on maritime opportunities.
Tanker squeeze
Al Seer posted net profits of 883 million dirhams ($240mn) for the second quarter of this year, from $112mn in the same quarter of 2021.
The company said its financials benefited from its investments in freight solutions and acquisitions of VLCCs and VLGCs.
Neivens, speaking in July, said the company was staying vigilant “to remedy any obstacle and to capitalise on opportunities in the maritime industry to build further scale and drive revenue”. The company aimed to buy 10-15 ships this year, it said.
Al Seer bought two VLCCs in June suggesting they would provide returns of 20%. Increased oil production and a declining VLCC order book, it said, would fuel this investment.
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