Dubai: The AD Ports Group is buying an additional 10 offshore vessels for around $200 million, which will be deployed across its expanding Middle East and Southeast Asia operations. All these vessels will be delivered before the year-end, and with ‘financial consolidation’ from Q1-2024 onwards.
Clients in the energy sector can benefit from the ‘enhanced capabilities, capacity and increased geographic footprint in the offshore segment the investment will bring’, said a statement.
“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,” the Abu Dhabi blue-chip added.
Doing so ‘limit’ performance volatility, and comes as forecasts suggest an ‘upward trend in the offshore O&G market’.
The $200 million investment can generate more than $70 million annually in revenue for the next 3-5 years. (The transaction implies a 12-month forward EV/EBITDA of around 5.0x.)
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
How the deal pans out
The acquisitions are sourced from E-NAV, the offshore supply vessel owner and operator. E-NAV. These include multi-purpose supply vessels (MPSVs), platform supply vessels (PSVs), diving support vessels (DSVs) and accommodation workboats (AWBs). Together, they make an 'attractive offering, particularly in relation to upcoming major offshore projects in the Middle East where there is a shortage of quality assets', AD Ports Group said.
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'. The expection is for a utilisation rate of around 95 per cent on the existing contracts.