RIYADH: Terminals operator Abu Dhabi Ports Group will boost its offshore and subsea capabilities by around 20 percent after acquiring 10 vessels for $200 million. The group acquired these ships, which include multi-purpose supply, platform supply and diving support vessels, from E-NAV, the international offshore vessel operator. In a statement, the group said the investment encompasses a neat and diversified fleet with an average age of around nine years, notably younger than the industry average. Expected to be delivered in the fourth quarter, the financial consolidation of these vessels could commence from the first quarter of 2024, the statement 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 AD Ports Group CEO Mohamed Juma Al-Shamisi. He added: “We recognize 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.” This move comes in response to projections of a positive trend in the offshore oil and gas market over the medium to long term. The acquisition also entails the transfer of well-established contracts with national and international oil companies in Southeast Asia and the Middle East. The group anticipates a utilization rate of around 95 percent for these existing contracts in the foreseeable future. The investment is projected to generate more than $70 million in annual revenue over the next three to five years, with the transaction reflecting a ratio of enterprise value and earnings before interest, taxes, depreciation and amortization of five times over the next 12 months. With the offshore oil and gas market showing positive performance and projected growth with healthy margins, the group is actively reinforcing its presence in this segment. The goal is to capitalize on favorable industry developments, optimize operational synergies and provide enhanced services to its customers.