DOHA: Qatar Navigation (Milaha) has reported a net profit of QR553 million ($151.7 million) for the six months (H1) ended June 30, compared to QR651 million for the same period in 2015. Operating revenues reached QR1.387 billion, compared to QR1.507 billion for the same period in 2015, while operating profit was posted at QR371 million for H1 2016, as against QR442 million for H1 2015.
Earnings per share reached QR4.86 for the first half of the year, compared to QR5.73 for the same period in 2015.
Milaha Maritime & Logistics’ overall revenue declined 7 per cent, despite an increase in container volumes. Port Services was negatively impacted by lower ancillary services revenue and non-containerized general cargo and RORO. In addition, pricing pressures faced by the Container Shipping unit dampened the unit’s results.
Milaha Gas & Petrochem’s revenue grew by 56 per cent despite a global slowdown in the shipping market. The investment in two LNG carriers made in the second half of 2015, and the mid to long-term nature of the majority of charter contracts, largely insulated this segment during the first half of 2016.
Milaha Offshore’s revenue declined by 12 per cent amidst the extremely challenging offshore business environment. Despite cost saving measures that have significantly reduced operating expenses, operating and net profits continued to be under pressure due to volatility in the oil and gas market.
Milaha Trading was impacted by lower heavy equipment sales related to a slowdown in construction activities. Milaha Capital’s revenue declined by 25 per cent. Lower dividend income and continued volatility in the local equity market have negatively impacted the results of this segment.
“Despite a slowdown in some of the business segments in which we operate, our results remain strong. The foundation we have laid in the past few years will not only enable us to withstand any headwinds, but also position us for sustainable future growth,” said Sheikh Ali bin Jassim Al Thani, chairman of Milaha. “Our clear focus on executing our long term strategy and creating shareholder value has enabled us to weather short term volatility and deliver healthy results supported by a strong balance sheet,” said Abdulrahman Essa Al-Mannai, Milaha’s president and CEO.
