Long-term fleet portfolio expansion strategy

Background

• The client operates around 400 tankers and has a strategic vision to achieve approximately USD 6 billion in revenue by 2030; it aims to develop a comprehensive investment portfolio management strategy for 2024-30.

• Drewry was tasked to create a comprehensive investment plan and strategy, aiming to generate revenue of USD 6 billion by 2030. The shipping sectors covered included Crude & Dirty Products, Gas (LPG, LNG and Ammonia), Clean Products, Petrochemicals (methanol and FAME) and New Business Segments (such as FPSO/FSO, Dry Bulk, Hydrogen and LCO2).

Client Objectives

The study included: 

• High-level current portfolio analysis
• Investment portfolio optimisation strategy
• Comprehensive review of acquisition and chartering strategies
• Investment budget allocation across different sectors and project prioritisation based on financial modelling
• Scrapping policy review and benchmarking with best practices

Results Achieved

The report drafted by Drewry included:

• Investment Portfolio Assessment:
  • Analyses of market characteristics, commodity demand, fleet supply and current/future market conditions
  • Evaluation of the financial metrics of existing and planned projects in alignment with the client’s objectives
• Asset Acquisition Strategy:
  • Newbuilds
  • Second-hand assets
  • Chartering options:
    • Short-term and long-term charters, including bareboat charters and Build Operate and Transfer (BOT) models.

• Project Prioritisation and Investment Budget Allocation:

  • Evaluation of investment budget allocation based on risk tolerance, market outlook, company and national objectives, followed by a recommendation of optimal portfolio development.

The study required extensive engagement of the client’s management team. The client rated Drewry highly for professionalism, interaction with the team and quality of service.