GIS reports Net Profit of QR 161 million for the half year ended 30 June, 2016

GIS reports Net Profit of QR 161 million for the half year ended 30 June, 2016

03-08-2016

Revenue of QR 1.6 billion for the half year ended 30 June, 2016.
• Strong cash position of QR 1,142.4 million across the group, an increase of QR 181.2 million, or 18.9% on 2015.
• Total Asset of QR 11.5 billion, up by 2.5% as at 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 period half year ended June 30, 2016 with a revenue of QR 1.6 billion and net profit of QR 160.7 million.
Financial Results
Revenue
Group revenue for the first half of 2016 was QR 1.6 billion (compared to QR 2.3 billion in the first half of 2015), representing a decrease of QR 691.9 million or 30%. This reduction was due to ongoing downward rates revision and reduced level of activities across all group segments due to the challenging market conditions following the significant drop in the crude oil prices. 
Net Profit
Group net profit for the first half of 2016 was QR 160.7 million (compared to QR 605.4 million in the first half  of 2015) representing a decrease of QR 444.7 million or 73%. Earnings per share reduced to QR 0.86 for the period ended 30 June, 2016, compared to QR 3.26 in in the same period of 2015. This year-on-year decrease was primarily driven by the challenges witnessed across all the segments due to the reduced level of activities and decline in contract rates.  
Update on cost and operational optimization programs 
Further to the unfavorable economic condition, the cost optimization program became a top priority among all group companies. As planned, the group embarked on a number of initiatives, including further rationalizing the costs together with optimizing the utilisation of operating assets and the supply chain. The group continues the initiatives by continuously monitoring its cost structure for further enhancements on cost optimization.

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