AD Ports Group announced the purchase of 10 offshore vessels for around $200 million to bolster the group’s offshore operations in the Middle East and Southeast Asia.
All 10 vessels are expected to be delivered in Q4 2023, with financial consolidation taking place from Q1 2024 onwards, the company said in a media statement.
The acquisitions, from international offshore supply vessel owner and operator E-NAV, encompass a variety of offshore vessel types, including Multi-purpose Supply Vessels (MPSVs), Platform Supply Vessels (PSVs), Diving Support Vessels (DSVs) and Accommodation Workboats (AWB’s).
The company said the vessels across types will make an attractive offering, particularly in relation to upcoming major offshore projects in the Middle East where there is a shortage of quality assets.
AD Ports Group enhances offshore services
The new acquisitions will also diversify the group’s fleet, bringing down their average age to around 9 years, significantly less than the industry average.
The group’s clients in the energy sector can expect to benefit from the enhanced capabilities, capacity and increased geographic footprint in the offshore segment that the investment will bring.
AD Ports said the Group will take over well-established contracts with blue chip clients in the oil and gas industry, national and international oil companies in Southeast Asia and the Middle East, expecting a utilisation of around 95 percent of the existing contracts for the foreseeable future.
“The investment is expected to generate more than $70 million annually in revenue in the next 3-5 years,” the company said.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said the expansion of the offshore fleet is a significant move in its strategic objective to fortify and enhance the Middle East and Southeast Asia footprint.
“We recognise the increasing demand in the energy sector, thereby, through bolstering our fleet, our group is better positioned to demonstrate our role as a premier offshore service provider within these regions, whilst meeting the diverse and growing demands of our customers,” he said.
The global offshore oil and gas market and offshore wind has been positively performing and is forecasted to grow with healthy margins.
As an already well-established player catering to the offshore industry, AD Ports Group intends to strengthen its current positioning in this segment to take advantage of these positive developments, improve operating synergies, and better serve its customers.
Follow us on
