DOHA: Qatar Gas Transport Co (Nakilat) reported a net profit of QR177.2m for Q1 2013 compared to QR176.6m for the corresponding period of 2012.
The company’s operating income has increased to QR189m during the period versus QR186.6m for Q1 2012, an increase of QR2.4m.
Nakilat noted that its loss on derivative instruments of QR11.8m for Q1 2013, compared with a loss on derivative instruments of QR10m for Q1 2012, was due to a technical disqualification (for accounting purposes) of the applicable derivatives (carried in the books of the company’s overseas joint venture) as hedging instruments in accordance with International Accounting Standard 39.
“The change in the accounting treatment is only a non-cash accounting transaction and does not affect the economics of the derivative transactions nor the cash flows or liquidity of the company,” the company said here yesterday.
Nakilat and its joint ventures are exposed to interest rate risks on borrowed funds.
The risks are managed by the use of interest rate swap contracts, which will protect the company from increases in interest rates in the future.
The Peninsula
