Dubai: Dubai-based Gulf Navigation is to acquire petrochemical and dry bulk carriers from Empire Navigation, a Greek company. The new vessels will allow Gulf Navigation to enter new markets.
It will also “support efforts to develop the company's maritime fleet and enhance its role in the maritime transport sector in general,” the UAE company said in a statement. The number of vessels being bought and the deal value have not been disclosed.
Dubai Financial Market listed Gulf Navigation operates a fleet of chemical tankers, livestock transport vessels, operation support vessels and is also into marine services and ship repair.
Empire Navigation owns 20 petrochemical vessels and 16 dry bulk ships. The company, which was established in 2009 in Athens, specializes in the handling of oil and chemical tanker vessels.
Cutting losses
For 2020, Gulf Navigation brought down its net loss to Dh61 million against Dh327 million a year ago “The main reason for the [2020] loss was due to lower activities in livestock carriers, resulting from the sinking of Gulf Livestock 1 (GL1) and loss in sale of one chemical tanker,” the company said.
At the gross profit level, the numbers were in positive territory, at Dh14.6 million, brought on by gains in vessel chartering. That’s against gross losses of Dh5.6 million in 2019.
Collect the insurance
Gulf Navigation confirmed talks are on with its insurer to “ensure the collection of insurance amounts arising from the sinking of GL1”. Once these are received, it will “enhance liquidity, which in turn will support operational activities. The company will disclose the outcome of these negotiations very soon.”
