Al Seer Marine LPG vessel
In May 2023, Al Seer Marine made a significant initial cornerstone investment of Dh257 million in ADNOC Logistics & Services, later increasing this investment by 43% to Dh367.25 million Image Credit: Supplied

Abu Dhabi: Abu Dhabi-based Al Seer Marine’s gross profit reached Dh74 million in H1-2023, a significant 92.5 per cent increase over same time last year, the company said on Tuesday. The company’s operating income increased by 134.7 per cent year-on-year to reach Dh53 million.

Al Seer Marine has generated total revenues of Dh564 million in H1-2023, marking an 18.9 per cent year-on-year growth from the same period last year, driven by the effective operation of seven vessels sailing since 2022.

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“Al Seer Marine demonstrated resilience and strategic agility in the first-half of 2023,” said CEO, Guy Neivens. “Our operational profit has shown strong growth, thanks in part to our significant investment in ADNOC Logistics & Services, as well as our strategic acquisitions and the expansion of our fleet, which now includes a new gas vessel and two VLGCs.”

“These investments have not only diversified our operational capabilities, but also positioned us to better serve the growing global demand for gas transportation,” he added.

Notwithstanding these favorable outcomes, the company reported a downturn in profitability with a net loss of Dh750 million, primarily due to a mark-to-market loss on investments of Dh784 million, reflecting the impact of recent economic headwinds on equity markets.

Strategic acquisitions

The company also reported a series of successful vessel acquisitions, including a gas vessel for Dh331 million and two Very Large Gas Carriers (VLGCs) for Dh724 million. The first of these

VLGCs, ‘Lucky Gas’ was taken over in June 2023, marking a significant milestone in the company’s growth strategy. The second VLGC is expected to be delivered in September 2023.

Al Seer Marine’s strategic acquisitions throughout the year have significantly bolstered the company’s growth, resulting in a 63.6 per cent increase in the size of Property, Plant, and Equipment (PP&E), reaching Dh1.2 billion in H1-2023, up from Dh730 million during the same period last year.

Despite a decrease in cash balance which stands at Dh316 million as of June 30, 2023, the company has successfully reduced its total liabilities by 34.7 per cent, from Dh4.8 billion in H1-2022 to Dh3.1 bllion in H1-2023. This significant reduction is primarily due to a decrease in borrowings amounting to Dh1.7 billion.