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Dubai’s Gulf Navigation expects better liquidity with redeployment of vessel

Dubai-based Gulf Navigation Holding is expected to boost its revenues with the redeployment of its vessel that was earlier grounded for extensive maintenance.

The firm’s Gulf Livestock 2 (GL2) has just set sail after months of drydock at Ozata Shipyard in Yalova, Turkey.

It has the capacity of carrying 6,500 cattle and has been chartered out for $5.5 million, according to the company, which operates a fleet of vessels, including chemical tankers, livestock transport carriers and offshore support vessels.

“Although 2020 has been an incredibly tough year for the transport of cargo globally and domestically due to the COVID-19 pandemic and its impact on livestock carriage in general, GL2 was able to successfully complete its major repair work,” the company said in a statement.

“GL2 entered a five-year bareboat charter contract with Mira International Shipping with a value of $5.5 million in net proceeds. The employment of the vessel is anticipated to enhance the liquidity of the company, generate improved revenues and increased profitability for the new few years,” it added.

The company incurred a net loss of 61 million dirhams for the full-year 2020, down from the net loss of 327 million in 2019.

Gulf Navigation’s financial position was impacted by the COVID-19 pandemic and the loss of a livestock carrier last year.

The ill-fated Gulf Livestock 1, which was carrying nearly 6,000 cattle and 43 crew, capsized in the typhoon-battered seas off Japan on September 2.
Source: Reuters (Writing by Cleofe Maceda; editing by Seban Scaria)

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