December 3, 2023

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DFM-listed Gulf Navigation steers itself to calmer waters financially

2 min read

This was primarily pushed by the constitution rent and different company providers. There are additionally plans to purchase petrochemical tankers whereas looking for to extend its fleet by 50 per cent over the subsequent two years. The present fleet numbers 11 tankers and chartered ships transporting chemical, livestock as nicely crew and passengers.

For shareholders, one main optimistic was its total discount in its prices by 18 per cent. Over the previous one yr, Gulf Navigation undertook a number of measures for a similar. Among the many main ones, there was the refinancing of its 5 petrochemical tankers at $62 million, at curiosity under 4 per cent.

This enables the corporate to decrease its whole price of borrowing. It had additionally agreed with present sukuk holders and commerce collectors to transform greater than Dh85 million price of money owed into shares. Different strikes included cancelling 637.70 million shares (equating to 50 per cent of the fairness) to soak up the earlier amassed loss by the identical quantity.

On the macro stage, the worldwide chemical market tanker market is valued at $15 billion to $ 8 billion, with expectations of a peak CAGR of seven.5 per cent over the subsequent 10 years. Natural chemical compounds lead the majority of the market share, with 60 per cent and a CAGR of 8 per cent within the subsequent decade.

The natural chemical market demand is claimed to be inelastic as it’s utilized in day by day wants, together with medicines, personalcare merchandise, cosmetics, and meals and drinks. The growing want for safe transportation of specialty and costly chemical merchandise might enhance the general profile of such delivery corporations.

This sector is anticipated to get pleasure from one important tailwind within the type of large-scale chemical trade manufacturing and its related distribution.

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