DOHA: Gulf International Services (GIS) the largest services group in Qatar, with interests in a broad cross-section of industries, delivered a revenue of QR4.2bn and a net profit of QR801.4m for the full year 2015.
The revenue recorded for the year represents a moderate decrease of QR92.5m, or 2.2 percent over last year. Versus the last quarter, the group revenue was down by QR78.1m, or by 8.0 percent, mainly due to drop in drilling segment revenue.
The QR801.4m net profit reflects a year-on-year decrease of QR608.5m. Excluding the one-off gain from business combination recorded in the previous year amounting to QR269.4m, the year-on-year decrease was 29.7 percent. This year-on-year decrease was primarily driven by a reduction in revenue due to the decline in crude oil prices and to remain competitive.
With cost reduction becoming its top most priority, the Group has already embarked on a number of initiatives to identify opportunities where costs could be minimised and utilisation of the assets could be optimised.
As part of these plans, GIS’ drilling and aviation subsidiaries are actively relooking at optimal deployment plan of their asset base while its insurance subsidiary recently received A- rating from credit rating agency Standard & Poor’s, which will be a major strength when they negotiate rates with reinsurers and lenders.
The company started to consolidate its underwriting capabilities and change its structure to meet the new phase. The Board of Directors proposed a total annual dividend distribution for the year of QR185.8m, equivalent to a payout of QR1 per share, and representing 23.2 percent of the group’s net profit.
