Khamis Bu Amim, Board Member, Managing Director and Group CEO, Gulf Navigation Holding (PJSC), during the press conference where Gulf Navigation Holding (PJSC) reveals its new expansion plans towards “a Broad Vision to a New Horizon” at the Westin Hotel, Mina Seyahi Beach and Resort Marina,Dubai, yesterday. Image Credit: Ahmed Ramzan/ Gulf News

Dubai: Gulf Navigation Holding, a Dubai-listed shipping company, said on Monday it is targeting revenue growth of 300 per cent by 2021 as the company plans to triple its fleet and diversify services.

At a press conference in Dubai, Khamis Bu Amim, managing director and group chief executive officer of Gulf Navigation, said the company is planning to grow its fleet through a combination of new ship builds and second-hand ship acquisition.

He said Gulf Navigation’s fleet will double to 20 ships by the second quarter of 2020 as the company is set to receive six vessels, with a new vessel every four months starting from the second quarter of 2018. By 2021, the fleet would have tripled, according to Bu Amim.

The CEO added that Gulf Navigation is planning to diversify its services as it sees lots of areas of growth and business potential, including the opening of new facilities in Fujairah and Abu Dhabi.

To finance its growth plans, the company is planning to issue $250 million (Dh918.25 million) worth of sukuk (Islamic bonds) in late August or mid-September. Bu Amim said Gulf Navigation has already finalised documentation to issue the sukuk and has received approval from the Securities and Commodities Authority, the market regulator.

The company appointed First Abu Dhabi Bank to lead the transaction.

The approval comes after Gulf Navigation in early April announced plans to issue the sukuk. Gulf Navigation said the proceeds from the sukuk will be used for asset purchases and will enhance the company’s future potential and create new growth opportunities.

Discussing the company’s future plans, Bu Amim said Gulf Navigation is currently in lots of discussions with a number of companies about potential partnerships.

He said those would be for joint ventures — not takeovers — as there is a need to exploit synergies more. The CEO said the company will announce new partners in the third quarter of this year.

Gulf Navigation’s shares, which are traded on the Dubai Financial Market, ended flat on Monday at Dh1.41.