GIS declares net profit of QR 189 million for the first nine months of 2016

GIS declares net profit of QR 189 million for the first nine months of 2016

27-10-2016

  • Revenue of QR 2.3 billion for the nine months ended 30 September, 2016
  • Total Assets of QR 11.6 billion, up by 3% on 31 December, 2015 
  • Continuous cost and operation optimization measures across the group

DOHA, QATAR - Gulf International Services (“GIS” or “the group”; QE: GISS), the largest services group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services, announced its financial results for the nine months period ended September 30, 2016 with a revenue of QR 2.3 billion and net profit of QR 189 million.

Financial Results

Revenue
Group revenue for the nine months ended September 30, 2016 was QR 2.3 billion (compared to QR 3.3 billion for the same period of 2015). This reduction was driven by the downward rates-revision and reduced level of activities across all segments of the group due to the challenging market conditions faced by the group companies.
Revenue in the drilling segment was significantly impacted by the lower daily rates and utilization of rigs following the drilling price plunge, which have adversely affected most of GDI contracts. Aviation segment revenue was also down on 2015 due to lower flying hours, downward rate revisions and reduced operations across the region. 
Catering and Insurance segment’s revenue were moderately affected due to demobilization of contracts and lower rates on new contracts.
Nonetheless, the group is continuously working on improving its revenue through a number of initiatives including exploring new opportunities in and outside of Qatar. 

Net Profit
Group net profit for the nine months ended September 30, 2016 closed at QR 189 million (compared to QR 822 million for the same period of 2015) representing a decrease of QR 633 million on last year. Earnings per share was QR 1.02 for the period ended September 30, 2016, compared to QR 4.42 for the same period of 2015. This year-on-year decrease was primarily due to the reduced revenue despite a notable improvement in the operating costs.  

Performance Improvement Efforts
The group is actively engaged in a series of initiatives to decrease its operating cost across the group companies. These initiatives include further rationalization the costs together with optimizing the utilization of operating assets, and the supply chain. The group companies are actively seeking for new avenues of cost optimization as it is a critical priority for the group given the current economic environment.

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