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Al Seer Marine Expands Fleet with Delivery of Two Modern MR Tankers
New vessels secure USD 84 million in charter contracts with Reliance Industries DMCC for five-year term.
BOCOM Leasing doubles its commitment to Al Seer Marine to USD 160 million.
Abu Dhabi, December 20th, 2024:Al Seer Marine (ADX: ASM), a a frontrunner in the maritime industry and a subsidiary of International Holding Company (ADX: IHC), has taken delivery of M.T. Saiph and her sister ship from K Shipbuilding Korea. These state-of-the-art vessels are the second pair in a series of six newbuilding MR tanker
Each vessel is equipped with an Exhaust Gas Cleaning System (EGCS) and engineered to accommodate alternative fuels such as Liquefied Natural Gas (LNG), ammonia, and methanol. These advanced features ensure future adaptability and compliance with stringent environmental regulations while meeting the surging global demand for clean petroleum products (CPP) and chemicals transportation.
The delivery is financed by BOCOM Financial Leasing Co., Ltd. (BOCOM Leasing), a subsidiary of Bank of Communications, securing USD 80 million—USD 40 million per vessel. This latest agreement strengthens Al Seer Marine's partnership with BOCOM Leasing, first established in August 2024 with the USD 80 million financing of MR Tankers Betelgeuse and Bellatrix, bringing BOCOM's total commitment to USD 160 million.
"At Al Seer Marine, we continue to invest strategically in product and chemical tankers, which represents one of the most promising sectors in the maritime industry. The expansion of our partnership with BOCOM Leasing, our first international financing partner, validates our growth trajectory and market potential. This aligns with our vision to become a global leader in meeting the surging demand for refined petroleum products and chemicals trade, a position increasingly recognised by financial markets and key investors," stated Guy Neivens, CEO at Al Seer Marine.
With a deadweight of 49,757 MT each, the two modern vessels are IMO II/III oil and chemical tankers carefully engineered to carry six fully segregated grades of cargo for optimal global operations. The vessels' dimensions and sophisticated design ensure versatile navigation capabilities and unrestricted access to major ports worldwide, including efficient passage through strategic maritime routes. Both tankers have secured 5-year time charters with Reliance Industries (Middle East) DMCC, valued at USD 42 million per vessel, joining their sister ships Betelgeuse and Bellatrix in the charter arrangement.
With the delivery of the two modern tankers, Al Seer Marine has just two vessels remaining from the six MR tankers ordered from K Shipbuilding, with completion expected in January 2025. The delivery of these final vessels is expected to further enhance Al Seer Marine's commercial revenues. The company's robust performance in the first half of 2024 saw total assets reach AED 7.5 billion (USD 2.04 billion), with revenues climbing to AED 580 million (USD 158 million). The expanded fleet reinforces its position as a key partner and investor in the UAE's maritime sector, complementing its strategic investments exceeding AED 1.45 billion (USD 395.1 million) in Abu Dhabi Ports and ADNOC Logistics and Services.