3 days ago
GulfNav's Brooge acquisition to boost income, slash costs
Dubai-based shipping firm Gulf Navigation Holding (GulfNav) expects an increase in come and lower costs following its acquisition of Brooge Energy.
GulfNav's CEO Ahmed Al-Kilani said the merger would lead to the establishment of an integrated logistics company specialising in the transportation and storage of fuel, petroleum products, and petrochemicals.
Kilani told CNBC Arabia satellite news TV that the GulfNav, which is specialised in the transportation of petroleum and petrochemical products, has recently overcome difficult condition due to weak liquidity and operational challenges.
He noted that the company is now in a stable stage and preparing for a new phase of growth, adding that the Company's Board had two options-- either proceed with gradual expansion by strengthening operations and increasing the marine fleet, which would require a long time, or move towards a faster path through acquisition or merger, which was achieved through this deal with Brooge Energy.
He said GulfNav possesses significant assets, including storage tanks for crude oil, petroleum products, and petrochemicals in the Port of Fujairah, which is a global strategic location for storage.
He pointed out that these tanks rely on advanced technologies that enable effective operational integration between the two companies.
'This step will open new horizons in global markets and contribute to increasing revenues and reducing expenses due to the integration of services and assets.'
Kilani said there are promising opportunities for expanding the operations of both Gulf Navigation and Brooge Energy, expecting Brooge to expand outside the UAE, amidst global moves towards clean energy.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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