Qatar Gas Transport Company (Nakilat) recorded a net profit of QR955m for the year ended December 2016, compared to QR984m posted a year ago. The earnings per share in 2016 was QR1.72 . The Board of Directors decided to convene the ordinary general assembly on Sunday.
Nakilat’s Board of Directors commended the company’s resilient financial results despite the challenging market conditions, which clearly reflects the strength and stability of the company’s commercial position. Nakilat’s long-term contracts continue to underpin the company’s strong financial performance. Given the downturn in market conditions, the company is pursuing a prudent and balanced strategy of strengthening its balance sheet, capitalising on profitable business growth, and achieving cost consolidations. The achievement of Nakilat’s vision to be a global leader and provider of choice for energy transportation and maritime services remains a top priority for the company.
The decline in oil and gas prices and overcapacity in the shipping industry has placed a downward pressure on the shipping markets and asset prices. Nakilat’s approach to its dividend disbursement would enable the company to continue to maintain a strong balance sheet and stable cash flow to support its debt repayment structure and remain resilient in the current volatile market environment. This would allow the company to maintain its leading market position in the transportation of liquefied natural gas (LNG) and capitalize on future opportunities that may arise.
In this regard, the Board recommended distributing a cash dividend to the shareholders equal to 10 percent of the nominal value of its capital, which is equivalent to ‘One Riyal’ per share.
During rating affirmations processes last year, the rating agencies had attributed the company’s success to its resilience to market volatility and its consistent and reliable record for operating LNG vessels.
The Board affirmed Nakilat’s continuous commitment to pursue its development and growth strategy in the long term, in order to achieve stronger returns for its shareholders.
Nakilat is a Qatari LNG transport company providing an essential transportation link in the State of Qatar’s LNG supply chain. Its LNG shipping fleet is the largest in the world, comprising of 63 LNG vessels. Nakilat also owns and manages four large LPG carriers. Nakilat operates the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial City via two strategic joint ventures: N-KOM and NDSQ. Nakilat also offers a full range of marine support services to vessels operating in Qatari waters.
