DOHA: Gulf International Services (GIS), the largest service group in Qatar, with interests in a broad cross-section of industries, recorded a revenue of QR2.7bn for the first nine months of 2014, reflecting a 60 percent growth over the same period last year. The group’s net profit stood at QR0.8bn, a significant year-on-year increase of QR 322.2m, or 70.2 percent.
The group’s share in revenue from Gulf Drilling International Company for the first nine months was QR1.2bn, a significant increase year-on-year of QR0.6bn, or 96.7 percent. This performance was driven largely by the offshore sector, which contributed 81.5 percent of total revenue.
Aviation segmental revenue for the first nine months increased by a moderate QR16.3m, or 3.5 percent, to total QR479.5m.
The group’s insurance subsidiary registered gross insurance revenue for the period ended September 30, 2014 of QR547.7m, a resolute QR30m, or 5.8 percent, improvement on the same period of 2013. The main contributor to this growth was the medical line of business which reported a year-on-year increase of 21.4 percent and now constitutes approximately 43 percent of Al Koot’s annual revenue. Results in the core energy line shrunk by a minimal 2.9 percent, in line with Qatar Petroleum’s reduced capital expenditure activity.
Amwaj Catering Services Limited contributed QR815.3m to group revenue, representing the second largest segment of group revenue. Compared to last year, the segment improved by QR101.7m, or 14.3 percent, due to the expansion of the core industrial catering and manpower contracting services.
The significant year-on-year increase in the net profit was driven by the ambitious growth plans across all segments, especially in the drilling segment.
The favourable year-on-year positive net profit variance in the drilling segment of QR284.2m, or 174.7 percent, was driven primarily by the additional profit attributable to the buyout of the interest held by its overseas drilling partner, the commencement of Al-Jassra, Leshat, Msheireb and Rumailah operations, and to higher daily rates received for the extension of three offshore rig contracts in 2013. Aviation segment earnings were impacted by operating cost increases, as the subsidiary registered a modest QR7.6m reduction in year-on-year net profit to close at QR179.9m. Profit in the insurance segment reached QR90.2m, an increase of QR12.6m, or 16.2 percent, as strong gains on the company’s investment portfolio were partially offset by increased major insurance claims.
Net profit in the catering segment was QR87.0m, up by QR37.8m, or 76.9 percent, as the subsidiary benefitted from its business expansion strategy, improved margins due to reduced operating costs and the commencement of shut-down related services in the plants of our clients.
The Peninsula
