Dubai tanker owner Gulf Navigation is targeting a big fleet expansion with the money raised in a $250m rights issue.
The company said on Thursday it will use the cash to build its fleet to 20 vessels by 2020.
The growth is designed to meet increased shipping demand for petroleum and petrochemical products from Middle East oil majors like ADNOC and Saudi Aramco.
It has five chemical/oil tankers operational and another four on order in China for delivery this year. It also owns two crew boats.
Gulf Navigation launched the rights issue earlier this month in a bid to look at consolidation and single-asset purchases.
The owner is also open to raising further cash.
In January, the company revealed it is taking a stake in OSV owner Atlantic Navigation Holdings.
Gulf Navigation already had cash for around $136m in capital expenditure this year.
Gross profit up
The owner also revealed a rise of 7% in 2017 gross profit to AED 49m ($13.34m).
This was due to its "vision and efficient strategic plans", it said.
During 2016, the company carried out a financial restructuring that helped it post net earnings of AED 136.57m. The 2017 figure dipped to AED 40.7m as a "result of returning these financial allocations."
The company has managed to reduce its operating expenses by AED 5.5m during 2017 through internal restructuring in order to achieve the highest level of operational and commercial efficiency at the lowest cost, it added.
CEO Khamis Juma Buamim said: “The shipping and marine services sector in our region is ultimately promising for those who know how to benefit from it and who have the experience to establish a well-planned strategy to invest in this industry with its numerous opportunities.
"We are proud to be a success story because we are the first and the only shipping company listed in Dubai Financial Market and we are committed to contribute to the national economy diversification."
