Gulf Navigation meeting to discuss non-GCC share ownership

Dubai: Maritime transportation firm Gulf Navigation Holding will decide whether to allow non-GCC nationals to own up to 20 per cent of company shares when it holds its extraordinary general meeting on April 14.

The issue could not be discussed at the company's annual general meeting held on March 30 because of a lack of quorum.

"We needed 75 per cent of the stockholders to be present for the quorum, but that did not happen," Abdullah Al Shuraim, board chairman of Gulf Navigation told Gulf News.

"All of us are positive that the proposal will be approved by the shareholders," he added.

The 20 per cent stock would amount to about Dh1.65 billion.

The company reported a net profit of Dh116 million for 2007, up 121 per cent from 2006 figures. It paid a dividend of seven fils per share.

Gulf Navigation has six vessels under construction to add to its fleet of 18.

Al Shuraim said four chemical tankers are being built in Korea, and they will be chartered to Saudi petrochemicals giant Sabic.

"We signed a time charter agreement with Sabic for 15 years," he said.

"We will receive the first carrier in the beginning of May from the Ulsan Shipyard in Korea," Al Shuraim said. The company will take the delivery of all four chemical tankers by next year.

It also has two vessels under construction. When completed, they will be operating in a pool arrangement with partners.

Total value

Total value of vessels under construction is $2.1 billion and the company's investment last year equalled $1.2 billion.

These vessels will be operating in the region and globally. "This is part of the long-term joint arrangement with Stolt Nielsen (a petrochemical transportation company)," Al Shuraim said.

He said that due to the industry regulation, which requires all single-hull vessels to be phased out by 2010, they will have an advantage in the market as some of their competition will reduce.

"Vegetable oil will have to be transported in chemical tankers, and this will also add value to our company," Al Shuraim said, hoping that this regulation will boost his company's business.