Hong Kong-listed Agritrade Resources is eyeing more vessel acquisitions in order to meet growing oil storage demand.

The company believes the floating storage business for petrochemical products will have promising prospects for the coming years and will promote the long term diversified growth of the group in the future.

Agritrade said it has been in continuous discussions and negotiation with major oil trading companies in relation to term storage contracts for its oil storage business, which brings stable cashflow to the group.

“We will closely monitor the market development of this sector and seek the best opportunities for any further expansion of the shipping segment through acquisition of new vessels and chartering of vessels in the Southeast Asia region to meet the growing market need in the region,” the company said in its interim report.

Agritrade Resources completed the acquisition of a VLCC at an investment cost of $22m in February. Following the acquisition, it entered into a floating storage unit service agreement with Glencore for an initial six-month period at $6.4m with an option to renew for another six months.