DP World acquires Topaz Energy in $1.1 billion deal

Written by Nick Blenkey
Two Topaz Energy vessels

Dubai headquartered global port operator DP World has acquired Topaz Energy and Marine Limited from Renaissance Services SAOG and Standard Chartered Private Equity/Affirma Capital in a deal valued at $1,079 million.

Topaz, which is also Dubai based, is a leading offshore services and logistics player that stands out from other players in the offshore sector by actually making money.  It reported a 100% EBITDA increase of $33 million to $66 million in the first quarter of this year.

DP world notes that Topaz operates a modern, versatile fleet of 117 vessels, predominantly in the Caspian Sea, MENA, and West Africa regions and enjoys a particularly strong position in its core Caspian Sea market.

“Topaz’s enduring focus on securing long term strategic contracts has allowed it to outperform the market, and the company’s market-leading contract backlog of $1.6 billion as of 31 March 2019, far exceeds industry benchmarks, demonstrating the success of the company’s strategic approach,” says DP World, adding that the acquisition supports its objective of increasing its presence in the global logistics and marine services industry.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce the acquisition of Topaz, which further strengthens DP World’s position as a world-leading operator in maritime logistics services. In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships. This latest acquisition complements the operations of our P&O Maritime Services (POMS) business, which maintains over 300 vessels globally. Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the Company outperform the industry. We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth. Furthermore, this new partnership opens the door for DP World to explore new business areas more extensively, for example, increasing transit volumes through Azerbaijan within the East-West trade corridor.”

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