Seven Islands Shipping Ltd, backed by Indian born Canadian businessman Prem Watsa-led Fairfax India, has purchased a second-hand oil products carrier, its fourth ship acquisition since September last year, for an undisclosed amount.
Seven Islands Shipping, India’s second biggest private oil tanker shipping company, took delivery of the 35,190 tonne-capacity oil products tanker, in Singapore on Thursday, company officials said. The Denmark-flagged tanker called ‘Roy Maersk’ has since been registered under the Indian flag and named ‘Fairway’.
With the acquisition, Seven Islands Shipping runs a fleet of 23 ships comprising 18 oil products tankers, three crude tankers, one very large gas carrier and one liquefied petroleum gas (LPG) tanker.
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, taking its total stake in Seven Islands Shipping to 48.5 per cent.
Seven Islands earn bulk of its revenue from three state-run oil firms -- Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd -- with whom its ships are deployed on long-term time charter and on spot contracts.