GIS Declares 2017 First Quarter Revenue of QR 617 million and Net Profit of QR 15 Million

Total Assets of QR 10.7 billion as at March 31, 2017 Robust cash position with closing cash of QR 1.2 billion as at March 31, 2017. Cost optimization program is a top priority among all group companies

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 ended March 31, 2017, with a revenue of QR 617 million and a net profit of QR 15 million.

Financial Results

Group revenue for the period ended March 31, 2017 was QR 617 million . The performance of the first quarter of 2017 was affected by the catering segment which witnessed demobilization of some of its major contracts during the period; in addition to the downturn in medical and general insurance business. The drilling segment continues to face difficulties due to reduction on unearned days of rigs in operations, which collectively affected the group’s revenue. However, the aviation segment remained broadly flat with similar level of activities. 

Net Profit
Group net profit for the period ended March 31, 2017 closed at QR 15 million. Earnings per share was QR 0.08 as of March 31, 2017. The impact on the profitability was from a significant revenue reduction in catering and insurance segment . In addition to the increase in interest charges and fixed operating expenses in the Drilling segment, despite the notable improvement in the aviation segment performance.

Cash position
Cash position remained strong with closing cash of QR 1.2 billion across all group companies as at March 31, 2017, after 2016 dividend declaration of QR 1 per share  equivalent to QR 186 million.

Performance Improvement Efforts
Continuous cost and operation optimization measures are underway across the group. These initiatives include identification and short listing of a number of new opportunities, and further rationalization of the costs together with optimizing the utilization of the operating assets, and the supply chain.