Qatar Navigation (Milaha) declared a net profit of QAR 711 million for 2016 on revenues of QAR 2.55 billion.
Qatar Navigation (Milaha) (profile) has posted a net profit of QAR 711 million in 2016, a 35 per cent drop from QAR 1.09 billion profit in 2015.
Operating revenue were also lower at QAR 2.55 billion, a 14 per cent drop compared to QAR 2.98 billion in revenue the previous year.
The company, which specializes in maritime shipping including transportation of gas and petroleum products, also announced its 2016 operating profit as QAR 555 million, compared to QAR 855 million in 2015.
H.E. Sheikh Ali bin Jassim Al Thani, chairman of Milaha’s board of directors, said: “2016 was a profitable year for Milaha despite the challenging business environment. Our strong balance sheet and formidable asset portfolio will allow us to continue executing our long-term growth strategy and expanding our presence in Qatar and beyond.”
For his part, Milaha’s President and CEO Abdulrahman Essa Al-Mannai said: “Despite the multiple macroeconomic and sector-specific challenges we faced in 2016, we achieved a net profit of QAR 711 million. Operationally, we had an even better year as we entered new markets, enhanced and increased our service offerings across several sectors, and added new assets to our portfolio.”
Earnings per share 2016 were QAR 6.26, compared to QAR 9.63 reported the previous year. The board of directors has recommended a 35 per cent cash dividend for distribution, equivalent to QAR 3.5 per share.
Results by business line
Milaha Maritime and Logistics’ net profit was QAR 144 million for the year ended 2016 compared to QAR 264 million reported the previous year, mainly as a result of lower revenue from the Port Services unit, which was affected by a drop in storage and general/bulk cargo revenue, and rate pressure in the Container Shipping unit, which still managed to grow its market share and volumes.
Milaha Gas and Petrochem’s net profit was QAR 415 million for the year ended 2016 compared to QAR 457 million reported the previous year, mainly due to a slump in both tanker and gas carrier charter rates. The decline was partially offset by the full year impact of increasing ownership in two LNG carriers – Milaha Ras Laffan and Milaha Qatar – from 40 per cent to 100 per cent in 2015.
Milaha Offshore recorded a net loss of QAR 115 million for the year ended 2016 compared to a net profit of QAR 93 million for the year ended 2015, with one time impairments amounting to QAR 161 million being the primary driver of the net loss for the year ended 2016. Operationally, reduced exploration and production spending by both international and national oil companies contributed to a historically depressed market environment.
Milaha Capital’s net profit for the year ended 2016 inched up one per cent higher than the profit reported for year ended 2015, with both its Financial Investments as well as its Real Estate arms holding steady in a volatile year.
Milaha Trading’s net profit was QAR 8 million for the year ended 2016 compared to QAR 24 million reported the previous year as a result of a significantly weaker market for commercial trucks and heavy equipment, which in turn was due to a slowdown in new construction projects in Qatar during 2016.