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Abu Dhabi’s Al Seer Marine, a subsidiary of UAE conglomerate International Holding Company (IHC), has acquired two additional tankers valued at 246 million dirhams ($66.9 million) to meet growing demand for shipping liquified petroleum gas (LPG).
The gas carriers, MT Alcor and MT Alkaid, each with a capacity of 20,700 cubic metres, are expected to provide an internal rate of return (IRR) of 25 percent, Al Seer Marine said in a statement to the Abu Dhabi Securities Exchange (ADX) on Friday. The vessels were acquired with the help of several international banks, including ING and Bank of America.
“These transactions are building significant scale in our operations and providing attractive returns to the company and its shareholders,” said Guy Neivens, CEO of Al Seer Marine.
Al Seer Marine has plans to acquire up to 15 vessels this year, as it looks to expand its business to become a major leader in commercial shipping.
Demand for charters in the product tanker and gas segments has been growing, compounded by recent geopolitical developments.
As of 2021, the global LPG tanker market was valued at $182.02 million, according to Grand View Research. Between 2022 and 2030, the market is expected to expand at a compound annual growth rate (CAGR) of 5.3 percent.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
