Maritime CEO

AGODCO: $100m readied for LPG investments

 

Abu Dhabi: In the first couple of months of Maritime CEO’s existence there has been plenty of owners and bankers backing LPG prospects. Today we catch up with the ceo of a company raising $100m to invest in LPG ships.
 
Abu Dhabi’s AGODCO is moving from landside oil and gas developments to the deepsea, announcing its first ship investments as part of an investment fund based in the Kingdom of Bahrain.
 
The first phase of the fund objective is to raise around $100m of which it has already secured close to 70% of this target from three main Middle Eastern anchor investors.
 
The company’s ceo, Adam Harcourt (pictured) says: “We have made our first three investments in a shipping segment that is characterized by stability, rising freight rates and a minimal orderbook.” AGODCO has ordered two 7,200 cu m  pressurized eco gas carriers being built in Japan scheduled for delivery in 2014. Additionally, it has purchased an existing pressurised LPG carrier named Gas Inspiration.
 
“With our regional competitive intelligence, network connections and close industry contacts with MENA-based energy producers we are targeting advantageous commercial contracts for our modern ship fleet,” Harcourt says.
 
The ships will be managed by Brave Maritime of Greece.
 
“The AGODCO fund will be making further acquisitions in the future,” Harcourt says.
 
Speaking to Maritime CEO, Harcourt says additional ship investments will remain focused on LPG for the time being.
 
“It’s a fairly non-volatile segment with less competition than the typical sectors like bulkers or tankers,” he says. “Moreover, the orderbook is much smaller and the charterers are typically blue chip energy companies such as oil majors and big energy traders.”
 
On why Bahrain was chosen for this new venture, Harcourt says: “It has good transport communications for the Gulf, including the causeway to Saudi Arabia. Although its energy production is relatively much less compared to its neighbours, it still has a very mature banking and financial sector. As a GCC hub, the Kingdom of Bahrain provides us with a stable and multicultural tolerating society. Not to mention zero taxation.”
 
AGODCO is a diverse multinational founded in Abu Dhabi in 1978. It started out in the oil and gas industry as an equipment and technical services trading company. Later portfolios saw inroads and investments into the Greek shipping sector as well as sustainable leisure developments and luxury yacht chartering and sales.  [21/03/13]
 
 
For the latest maritime and offshore news from the Middle East, visit new site GulfShip News at www.GulfShipNews.com.

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