Offshore support vessel operator Atlantic Navigation has raided the secondhand market to bolster its fleet and secured fresh cash to fund the acquisition.
The Singapore-listed company has acquired the accommodation work boat Berkat Teguh (built 2015) for $11m, according to a regulatory filing.
The identity of the seller of the Chinese-built vessel was not disclosed, but is believed to be Malaysian company Shapadu Marine Sdn Bhd.
Atlantic Navigation said the vessel is expected to be ready for operation by March 2024 after undergoing the modification works expected to cost about $1.6m.
The 70.5-metre-long vessel, which offers a clear deck space of 550 sq metres, has an accommodation capacity of 193 beds.
Atlantic Navigation said the acquisition will be funded by a new $12m medium-term loan from one of its principal bankers in the Middle East.
The loan has been secured against two of its unencumbered vessels, the dive support vessel Discovery (built 2010) and the OSV Team Clio (built 2019) which were acquired in October 2022 and May 2023, respectively.
Atlantic Navigation said the new loan has a tenure of four years, but did not disclose the interest rate margin, only describing it as being comparable to a $20m loan secured in March 2023.
The company, which operates out of the United Arab Emirates, is currently benefiting from the improvement in the offshore industry.
In November 2023, it reported an 88.7% year-on-year increase in third quarter net profit to $4.8m, while revenue increased by nearly 39% to $23m.
This was despite the utilisation rate of its owned fleet declining to 86% in the quarter due to five vessels being off hire as they were undergoing routine special surveys.
Atlantic Navigation describes itself as an investment holding company with an integrated offering of marine logistics services as well as ship repair, fabrication and maintenance services.
It currently owns, operates, and charters its fleet of 19 OSVs including liftboats, anchor-handling tug supply vessels, platform supply vessels, DSVs and crew boats.
Last year, two major shareholders in Atlantic Navigation said they were “exploring strategic options” for their stakes in the company.
The two parties were named as Saeed Investment and current company chief executive Wong Siew Cheong.
Saeed Investment, which invested in the company in 2018 at about 9.9 US cents per share, holds 50.22%, while Wong has a direct stake of 31.82%
