Asyad Shipping, the ocean-going maritime transportation arm of Oman’s integrate logistics business Asyad Group, envisions investments totalling between $2.3 billion and $2.7 billion in the development and expansion of its shipping fleet over the medium term.
Muscat-headquartered Asyad Shipping, which recently announced its intention to float 20 per cent of its issued share capital for public subscription on the Muscat Stock Exchange (MSX), also expects to benefit from the maritime shipping requirements of a future green hydrogen industry currently in the early stages of development in Oman.
According to the wholly state-owned corporation, the new investments will be driven by two key factors: growing shipping demand, and the need for replacing aging assets across its presently 89-strong shipping fleet. Dominated initially by crude tankers and LNG carriers, the fleet now includes a diverse mix of product tankers, gas carriers, dry bulk carriers, and containerships.
The potential for growth is set out in the company’s newly published ‘Intention to Float’ document. “With planned investments of USD 2.3 billion to USD 2.7 billion in the medium term, which will be funded through a combination of internal company sources and external bank financing, the Company aims to capitalize on market dynamics while maintaining a strong focus on sustainable growth, profitability, and enhancing shareholder value,” it stated.
Underpinning the strong market outlook for Asyad Shipping are a number of key factors, according to the company. Already an important player in the carriage of crude oil and refined petroleum fuels from Oman to overseas markets, Asyad Shipping hopes to capitalize on predictions of stable growth in global oil production and consumption in the foreseeable future. Bolstering this outlook, it says, are expanding refining capacity and demand for refined products.
Also promising is the LNG segment where it continues to play a dominant role. “In the LNG market, expanding infrastructure and the growth of end-user markets continue to drive robust demand, with the majority of vessels already secured under contracts,” it noted.
In addition to liquid cargoes, such as crude oil, LNG, LPG and other refined products, the company also handles chemicals, and an array of dry bulk commodities linked to Oman’s thriving metallurgical sector.
Crucially, as the country’s “preferred partner for strategic Omani clients”, Asyad Shipping also stands to benefit from strong economic and project growth in Oman. This outlook is particularly promising in the emerging green hydrogen sector, which is set to ignite significant demand for capacity suited for the transportation of green ammonia, green methanol and other derivatives of green hydrogen.
Likewise, Asyad Shipping’s Liner Shipping segment, operated through its subsidiary Asyad Line Co (ASL), continues to expand as well. The service connects Omani ports to strategic markets in the GCC, China, and Southeast Asia, while also providing value-added services such as storage, transportation, and customs clearance.
“With one of the largest globally diversified fleets, Asyad Shipping is competitively positioned to supply high-growth markets, such as Asia, the Middle East and North Africa through its fleet of 89 vessels, with a total aggregate capacity of more than 9.5 million DWT as of 30 September 2024,” it added."
Oman Observer
