AD Ports Group acquires 10 offshore vessels for $200 million

AD Ports Group, a global leader in trade, logistics and industry, on Tuesday announced the purchase of 10 offshore vessels for an investment of around US $200 million, that will bolster offshore operations in the Middle East and Southeast Asia.

The investment aims to build a well-maintained, diversified fleet with an average age of around 9 years, significantly less than the industry average, AD Ports Group said in a statement. All 10 vessels are expected to be delivered in Q4 2023 with financial consolidation taking place from Q1 2024 onwards.

The acquisitions, from international offshore supply vessel owner and operator E-NAV, encompass a variety of offshore vessel types, including Multipurpose Supply Vessels (MPSVs), Platform Supply Vessels (PSVs), Diving Support Vessels (DSVs) and Accommodation Workboats (AWB’s), representing 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.

Energy sector customers of the group can expect to benefit from the enhanced capabilities, capacity and increased geographic footprint in the offshore segment that the investment will bring, the company said.

“The expansion of our offshore fleet is a significant move in our strategic objective to fortify and enhance our Middle East and Southeast Asia footprint,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.

“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,” he said in a statement.

The investment 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, thereby limiting its performance volatility, amidst forecasts of an upward trend in the offshore O&G market over the medium-long term.

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, expecting a utilisation of around 95% of the existing contracts for the foreseeable future, the group said. The investment is expected to generate more than $70 million annually in revenue in the next 3-5 years and the transaction would imply a 12-month forward EV/EBITDA of around 5.0x, AD Ports Group said.

The global offshore oil and gas market and offshore wind has been positively performing and is forecasted to grow with healthy margins. As an already well-established player catering to the offshore industry, AD Ports Group intends to strengthen its current foundation in this segment to take advantage of these positive developments, improve operating synergies, and better serve its customers.