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AD Ports Group acquires 10 offshore vessels for around US$200 million
AD Ports Group, a global leader in trade, logistics and industry, announced the purchase of 10 offshore vessels, that will bolster offshore operations in the Middle East and Southeast Asia.
The investment is around US$200 million, into a well-maintained, diversified fleet with an average age of around 9 years, significantly less than the industry average. All 10 vessels are expected to be delivered in Q4 2023 with financial consolidation taking place from Q1 2024 onwards.
The acquisitions, from international Offshore Supply Vessel owner and operator E-NAV, encompass a variety of offshore vessel types, including Multipurpose Supply Vessels (MPSVs), Platform Supply Vessels (PSVs), Diving Support Vessels (DSVs) and Accommodation Workboats (AWB’s), representing an attractive offering, particularly in relation to upcoming major offshore projects in the Middle East where there is a shortage of quality assets.
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. The transaction also supports AD Ports Group’s strategy to continue to balance its portfolio of Maritime businesses with assets and services exposed to different market forces and cycles, thereby limiting its performance volatility, amidst forecasts of an upward trend in the offshore O&G market over the medium-long term.
AD Ports Group will take over well-established contracts with blue chip clients in the O&G industry, National Oil Companies, and International Oil Companies in Southeast Asia and the Middle East, expecting a utilisation of around 95% of the existing contracts for the foreseeable future. The investment is expected to generate more than US$70 million p.a. in revenue in the next 3-5 years and the transaction would imply a 12-month forward EV/EBITDA of around 5.0x.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: "I am pleased to announce this key investment, the expansion of our offshore fleet is a significant move in our strategic objective to fortify and enhance our 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."
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 foundation in this segment to take advantage of these positive developments, improve operating synergies, and better serve its customers.