DOHA: The Qatar Gas Transport Company Ltd (Nakilat), the shipping arm of Qatar’s liquefied natural gas (LNG) sector recorded an underlying net profit of QR984m for the full-year 2015, up 10 percent compared to QR895m achieved for the year 2014.
Nakilat’s operations have achieved a higher profitability level by growing business streams through the addition of three new LNG vessels to Nakilat’s LNG Fleet during 2015, full operation of vessels acquired during 2014, optimisation of operating expenses and leveraging lower finance costs.
The Board recommended a cash dividend to the shareholders equal to 12.5 percent of the nominal value of its capital, which is equivalent to QR1.25 per share. Nakilat’s Board of Directors commended the company’s strong financial results. The solid performance was primarily driven by the company’s tactical strategy on capitalizing profitable business consolidations and risk assessment management which reinforces Nakilat’s position as a global leader in the LNG transporting industry. The financial results reflect the strength of the company’s commercial position.
The Board of Directors stated that Nakilat is in a favorable position due to the stable cash flows and highly rated sponsors incorporated with long-term and positive contract structures. The Board also recalled Rating Agencies’ rating affirmations processes of the company last year. The ratings services agencies attributed the company’s success to its resilience to market volatility and its experience in ship management with a consistent and reliable record for operating LNG ships. Even in the midst of the unstable oil and gas sector, Nakilat has continually performed well whilst being minimally impacted over the oil price fluctuations. The company’s strong bank relationships evident by the financing obtained from domestic and regional banks and from capital markets at low rates in conjunction with its strong link to the State of Qatar as the country’s premier marine company are key elements to Nakilat’s strong financial performance.
The Board affirmed Nakilat’s commitment to pursue aggressive developments and growth strategies in the long term, in order to achieve strong returns to its shareholders.
Nakilat will exploit future opportunities to acquire new business opportunities, serving the international marine sector, and to increase the utilization rate for the shipyard facilities at Erhama bin Jaber Al Jalahma Shipyard. An indication of these developments was the signed MoU with Qatar Development Bank (QDB) agreeing to collaborate in areas including marine export, credit insurance and financing. This will ultimately assist small to medium enterprises in entering the maritime industry by working together in order to provide services for Nakilat.
Nakilat’s continuous attention to SHE elements and quality systems was demonstrated by the seamless transfer of four LNG and four LPG vessels into ship management under Nakilat Shipping Qatar Limited (NSQL), a wholly-owned subsidiary of Nakilat. This was the result of a detailed and in-depth management of change that was successfully achieved.The Peninsula
