By Mohammad Shoeb
DOHA: Qatar Navigation (Milaha) has posted a net profit of QR553m for the first six months of this year ended June 30, 2016 (H1 2016), down 15 percent compared to QR651m for the same period last year.
Milaha, which announced its financials for the H1 2016 on Wednesday, reported that its operating revenues touched QR1.38bn during the period (H1 2016), down by nearly 8 percent, compared to QR1.50bn during the corresponding period in 2015.
The operating profit of the group stood at QR371m for the six months ended June 30, 2016, compared to QR442m for the same period last year. While the earnings per share (EPS) of the company for the period declined to QR4.86 against QR5.73 for the same period in 2015.
In a statement the group said that Milaha Maritime & Logistics’ overall revenue declined 7 percent, despite an increase in container volumes. Port Services was negatively impacted by lower ancillary services revenue and non-containerised general cargo and RORO (roll-on/roll-off system). In addition, pricing pressures faced by the Container Shipping unit dampened the unit’s results.
Milaha Gas & Petrochem’s revenue grew by 56 percent despite a global slowdown in the shipping market. The investment in two LNG carriers made in the second half of 2015, and the mid to long-term nature of the majority of charter contracts, largely insulated this segment during the first half of 2016.
Milaha Offshore’s revenue declined by 12 percent amidst the extremely challenging offshore business environment. Despite cost saving measures that have significantly reduced operating expenses, operating and net profits continued to be under pressure due to volatility in the oil and gas market.
Milaha Trading was impacted by lower heavy equipment sales related to a slowdown in construction activities. Milaha Capital’s revenue declined by 25 percent. Lower dividend income and continued volatility in the local equity market have negatively impacted the results of this segment.
“Despite a slowdown in some of the business segments in which we operate, our results remain strong. The foundation we have laid in the past few years will not only enable us to withstand any headwinds, but also position us for sustainable future growth.” said, Chairman of Milaha’s Board of Directors.
“Our clear focus on executing our long term strategy and creating shareholder value has enabled us to weather short term volatility and deliver healthy results supported by a strong balance sheet,” added Abdulrahman Essa Al Mannai, Milaha’s President and CEO.
The Peninsula
