Apollo acquires LNG shipping platform Hav Energy

NEW YORK – Apollo Global Management Inc. (NYSE: APO), a prominent financial services player with a market capitalization of $76.57 billion and current stock price of $133.98, and Norwegian private equity firm HitecVision have announced a deal wherein Apollo-managed funds will acquire Hav Energy LNG Holding AS, a maritime liquefied natural gas (LNG) infrastructure platform. The transaction details between the two parties remain undisclosed. According to InvestingPro analysis, Apollo currently trades below its Fair Value, suggesting potential upside opportunity for investors interested in this deal.

Hav Energy, established by HitecVision in 2022, holds a portfolio of 10 LNG carriers, including two operational vessels and eight under construction, all of which are on long-term charters with investment-grade counterparties. The vessels under construction are expected to be delivered in 2025 and 2026 from the Hyundai Heavy Industries shipyard in Korea. Apollo brings significant financial strength to this venture, with a healthy current ratio of 6.61 and a track record of maintaining dividend payments for 15 consecutive years, currently yielding 1.38%.

Joseph Romeo, a Partner at Apollo, commented on the acquisition, highlighting Hav Energy’s role in the global LNG transport market and its potential to contribute to energy resiliency worldwide. Hav Energy CEO Randi Vestbø expressed optimism for the company’s future growth and expansion under Apollo’s partnership.

The global LNG market is anticipated to see significant growth, with imports projected to exceed 600 million metric tons annually by 2040. This growth is driven by demand in Asia and Europe and the need for reduced emissions in heavy industries and transportation. The industry is also expected to benefit from new liquification capacity and a limited supply of new LNG vessels.

HitecVision’s Senior Partner, Jan H. Solstad, expressed pride in the development of Hav Energy into a scalable platform, citing the management team’s strength and strategic positioning for future success.

Legal counsel for the Apollo Funds in this transaction included Thommessen, Stephenson Harwood LLP, and Vinson & Elkins LLP, while HitecVision was advised by DNB Markets and the law firm BAHR.

Apollo is a global alternative asset manager with approximately $785 billion of assets under management as of March 31, 2025. HitecVision, with about EUR 9 billion in assets under management, focuses on the energy sector’s decarbonization and energy transition. The information for this article is based on a press release statement. For deeper insights into Apollo’s financial health and growth prospects, including 13 additional ProTips and comprehensive valuation metrics, visit InvestingPro to access the detailed Pro Research Report, part of the platform’s coverage of over 1,400 US equities.

In other recent news, Apollo Global Management reported its first-quarter 2025 earnings, revealing an adjusted net income of $1.1 billion, or $1.82 per share, which fell short of analysts’ expectations of $1.93 per share. The revenue was slightly below forecast at $978 million compared to an expected $981.9 million. Despite missing earnings expectations, Apollo reported record fee-related earnings of $559 million, marking a 21% increase year-over-year. Assets under management increased by 17% year-over-year to $785 billion, driven by substantial inflows of $43 billion during the first quarter.

Apollo also announced a 10% increase in its cash dividend to $0.51 per share. JPMorgan recently adjusted its price target for Apollo Global Management shares to $151 from the previous $161, while maintaining an Overweight rating. The revision followed Apollo’s earnings miss and was attributed to lower-than-anticipated principal investment income and softer spread-related earnings. Despite these challenges, Apollo’s alternative investment income performance improved to 10%, surpassing previous estimates.

The company highlighted its conservative investment strategy, focusing on accruing value and deploying approximately $25 billion in April. Apollo revised its 2025 spread-related earnings growth forecast to a mid-single-digit level from a previous 10%, which is expected to impact earnings projections. However, fundamental business drivers such as fundraising, deployment, and originations remain robust, with Apollo reporting a record quarter of organic inflows.

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