Gulf International Services (GIS) reported a net profit of QR67m for the the year ended December 2016, against QR801m for the same period of 2015.
The Group’s revenue for the year stood at QR3bn, showing a decline of 28.57 percent compared to QR4.2bn for the corresponding period of 2015.
GIS is the largest services group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services.
The Company in a statement said that the reduction in revenues and profit was driven by the downward rates-revision and reduced level of activities across all segments of the group due to the challenging market conditions faced by the group companies.
Revenue in the drilling segment was significantly impacted by the lower daily rates and utilisation of rigs following the plunge in crude oil price, which has adversely affected most of the GDI contracts. Aviation segment revenue was also down on 2015 primarily due to lower flying hours.
Insurance segment revenue reduced mainly due to non-renewal of contracts of some of the major medical insurance clients.
Catering segment’s revenue were moderately affected due to demobilisation of some contracts and lower rates on new contracts.
Nonetheless, the group is planning to work with a consultant to develop corporate strategy that will focus on identifying the growth opportunities, and to develop plans to execute those strategies.
Earnings per share was QR0.36 for the year. The impact on the profitability was due to a significant revenue reduction primarily in the drilling segment despite.
The group is actively engaged in a series of initiatives to better utilise the asset base and to decrease its operating costs across the group companies. These initiatives include identification and short listing of a number of new opportunities, and further rationalisation of the costs.
The Board of Directors of GIS, after considering the operating, investing, and the financing needs of business, has recommend a dividend distribution for the year equivalent to a payout of QR1 per share.
For the period from the initial public offering (IPO) in February 2008 to 2015, the group’s shareholders have received accumulated cash dividends of QR2.5bn, which is equivalent to circa QR13.3 per share, with an average payout ratio of approximately 52 percent. In addition, shareholders have received a total of 63 million additional shares through three bonus issuances.
