Al Seer Marine invests $175mln in MR tanks

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ABU DHABI - Al Seer Marine, a subsidiary of the International Holding Company (IHC), announced a new four IMO II/III product tankers order at a total value of AED 643 million, according to a press release.

K Shipbuilding, a leading South Korean shipyard, will build the four new medium-range (MR) IMO II/III product tankers at Jinhae Shipyard. The new ships are expected to be delivered before the end of the fourth quarter (Q4) of 2024.

The investment comes in line with Al Seer Marine’s global expansion plan for 2022. Following the transaction, the UAE company's total fleet will stand at 12 vessels, as it prepares to transport the transition fuels like methanol to help the industry reach net zero.

The tankers will be liquefied natural gas (LNG)-ready and designed to adapt to new fuels, including ammonia and methanol.

Al Seer Marine aims to expand its business and deploy capital at a long-term return on investment (ROI) with an internal rate of return (IRR) exceeding 20% over 10 years in this order. Through the investment, the company will be able to further diversify its asset base and geographic business zones in a new sector.

Guy Neivens, CEO of Al Seer Marine, said: “This is yet another endorsement of our global expansion strategy. We are working together with our partners to fulfill the need for modern and efficient tonnage in the markets we serve.”

YK Jang, CEO of K Shipbuilding, noted: “The economists point to the need to build new ships to meet the pending environmental regulations forecasting that shipbuilding orders will rebound in 2024, and today’s Al Seer Marine order confirms the market demand.”

Last October, Al Seer Marine acquired VLCC Acrux worth AED 396 million, bringing its total VLCC fleet value to AED 900 million in four months.

The UAE-based firm also unveiled its intention to ink future deals valued at over AED 36.70 billion ($10 billion) during the coming 10 years.