Saif Powertec signs deal with UAE’s Safeen Feeders
Peoples Time Desk
Saif Powertec has signed a vessel charter agreement with a UAE-based company, which will increase its revenue to Tk 1,232 crore per annum and profit around Tk 124 crore.
The agreement has been signed between Safeen Feeders, a UAE-based container feeder services company, and Saif United Shipping and Trading, a subsidiary of Saif Powetec, said the company in a filing with the Dhaka Stock Exchange on Tuesday.
Under the agreement, Saif Powertec will charter eight ocean-going bulk carriers with 55,000 DWT (Deadweight Tonnage) from Safeen Feeder for the next 15 years. The vessels will carry dry bulk cargoes from Fujairah port in the UAE to Chattogram port for SaifPowertec.
The company can also operate those vessels for other international destinations.
Captain Maktoum Al Houqani, Chief Executive Officer - Maritime Cluster, AD Ports Group, said, "Our newest collaboration with Saif Powertec not only introduces a new offering for customers that is a fast and low-cost service for their dry bulk shipping needs, but will also have a tremendous impact on maritime trade across our combined spheres of influence.
"Leveraging SAFEEN Feeders’ expertise as a leading maritime service provider, as well as the advanced capabilities of its modernised fleet, Saif is well-positioned to accelerate the trade of dry construction materials between the UAE and Bangladesh, along with other dry cargo goods to key markets across the region and beyond."
Captain Ammar Mubarak Al Shaiba, CEO SAFEEN Feeders and Acting CEO of Ports Operating Company at AD Ports Group, said, "Today’s announcement marks not only the official start of a new collaboration between AD Ports Group and one of Bangladesh’s leading logistics service providers, but also heralds a new era of maritime trade facilitation between our two proud nations and their respective ports.
"In addition to boosting trade between the UAE and Bangladesh, the collaboration with Saif Powertec brings a new opportunity to deliver an enhanced cargo service to customers across the Indian subcontinent, South-East Asia, as well as other high-profile global destinations."
Tarafder MD Ruhul Amin, Managing Director of Saif Powertec, said, "We are pleased to announce the start of our close partnership with AD Ports Group’s SAFEEN Feeders, which has greatly enhanced our capabilities as Bangladesh’s sole terminal operator to facilitate the movement of dry cargo at the international level.
"Boasting a capacity of 55,000 DWT, SAFEEN Feeders’ bulk carriers, which will be offered on a bareboat or time charter basis, are expected to realise significant returns and deliver real benefits for our customers."
The cargo freight revenue per vessel is estimated to be $ 18 million per annum which is equivalent to Tk 154 crore (approximately) and net profit amounts to $ 1.8 million equivalent to Tk 15.48 crore (approximately) per year per vessel for 15 years.
As per the information, SaifPowetec’s revenue will increase Tk 18,480 crore and net profit around Tk 1,858 crore for the period. The company also mentioned that SaifPowetec will perform charter services for those vessels as per the terms set out in its schedule.
Saif Powe tec posted Tk 62.63 crore profit for the last financial year, which was 61.37 per cent higher than that of the previous fiscal.
The company’s long-term bank loans increased 88 per cent in the last fiscal year compared to that a year ago.
It has around Tk 677 crore long-term loans from banks and NBFIS for FY21, which amounted to Tk 359 crore in FY20.
The company has been registered and transformed to a Private Limited Company in 2003. Earlier it was SaifPowertec Corporation.
On the DSE, The company’s share price declined 3.68 per cent to Tk 39.30 on Tuesday.
The market capitalisation of the company is Tk 1,547 crore and its paid-up capital is Tk 379 crore. The company has Tk 135 crore surplus reserves.