More than four months after the deal was reported by TradeWinds, a sale of the Navig8 Group’s tanker fleet and pooling operations to Abu Dhabi National Oil Co (Adnoc) for more than $1bn has been confirmed.
News of the sale was rippling through Posidonia parties on Sunday night local time in Athens, and then confirmed on Monday.
Adnoc L&S chief executive Captain Abdulkareem Al Masabi said: “This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy.
“The addition of Navig8’s presence in 15 international cities, its fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.”
As TradeWinds first reported on 30 January, rumours of a sale to wealthy Abu Dhabi buyers for about $1.2bn were rippling through tanker markets on both sides of the Atlantic at the time.
Adnoc announced on Monday it would take a 80% stake in Navig8 at a price of $1.04bn. The remaining 20% will be bought in 2027 for a further $335m to $450m.
Navig8 chairman Nicolas Busch denied the reports then. But sources familiar with the talks deemed that a technicality, saying discussions were advanced if not final, and expected to bear fruit.
In a statement today, Busch said: “Navig8 is excited by Adnoc L&S’ investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years making this partnership possible.
“The opportunity to work collaboratively with Adnoc L&S and the wider Adnoc Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector.
“This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group. We are very proud to support Adnoc L&S as they increase their global footprint.”
It was then a dealmaker’s dream to make the news official in the midst of Posidonia, the huge global shipping gathering in Greece.
Navig8’s pools and 32-strong owned tanker fleet will add a 20% boost to Adnoc L&S earnings in the first year, the statement said.
This is based on Navig8’s $400m plus in Ebitda in 2023, which amounts to 44% of Adnoc L&S core operating profit in the period. Costs and other savings are forecast at about $100m.
After listing last year, Adnoc L&S said it would invest $4.5bn over the medium term. That target has now been raised to $5bn.
At the original report, Navig8 Group had 21 ships on the water: nine LR2s averaging 3.5 years old, nine MRs averaging four years, two chemical tankers aged 10 years and one miscellaneous vessel, according to Clarksons’ database.
It also had five 50,000-dwt MR newbuildings from China’s New Times Shipbuilding, scheduled to be delivered later this year, as well as ownership interests in two VLCCs.
Sources suggested all of the tankers are involved in the unfolding deal. Navig8 was also understood to be parting with its Integr8 bunkering operation, according to the same sources.
Navig8 has a history of engaging in major pieces of asset play.
In December 2014, Navig8 sold its 14-strong VLCC newbuilding fleet to Peter Georgiopoulos’ General Maritime in a $1.4bn deal.
The combined company would become Gener8 Maritime and would later be sold to Belgian owner Euronav.
Then in the spring of 2017, the group sold its Oslo-traded Navig8 Product Tankers to New York-listed Scorpio Tankers. The 27-unit fleet was valued at $1.1bn.
