Seven Islands Shipping Ltd, India’s second biggest private oil tanker shipping company, has acquired three second-hand medium range oil tankers for an undisclosed amount, helping it expand the fleet size to 28.
Seven Islands Shipping Ltd, backed by Indian born Canadian businessman Prem Watsa-led Fairfax India Holdings Corporation, took delivery of two tankers a few days ago, shipping market sources said. The third MR tanker will be inducted into the fleet in the next few days.
Seven Islands Shipping could not be reached immediately for comments.
Seven Islands Shipping – the fastest growing Indian shipping company – currently owns a fleet of 27 vessels comprising 2 crude oil tankers, 23 product carriers and 2 gas carriers.
The crude oil vessels cater to India’s growing requirement of crude oil imports while the product tankers transport various refined oil products. The Company’s ships are registered under the Indian flag.
Seven Islands Shipping earns bulk of its revenue from three state-run oil firms – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – with whom its ships are deployed on time charter and on spot contracts.
In March 2019, Fairfax India acquired a 41.4 per cent stake in Seven Islands Shipping for $71.8 million through a direct subscription of $28.9 million and a secondary acquisition from existing shareholders of $42.9 million. In September and October 2019, Fairfax India acquired an additional 7.1 per cent from existing shareholders for $12.1 million, raising its stake in Seven Islands Shipping to 48.5 per cent.