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 June 30, 2017, with a revenue of QR 1,256 million and a net profit of QR 15.8 million.
Financial Results
Revenue
Group revenue for the period ended June 30, 2017 was QR 1,256 million, down by 22% on previous year. The drilling segment continues to face challenges and the revenue of the segment declined due to lower daily rate of rigs, an asset not in operation and due to the impairment of one of the rigs. Catering segment revenue is impacted by demobilization of some of its major contracts in the second half of 2016. General downturn in medical and general insurance business and rate reduction affected the insurance segment. However, the performance of the aviation segment marginally improved from previous year. Initiatives are undertaken by the group companies to assess the impact of the current political crisis. Aviation segment was forced to suspend a contract in one of the blockade countries under force-majeure. The group companies are also assessing number of alternatives and new opportunities, and further rationalization of the costs together with optimizing the utilization of the operating assets and the supply chain are underway across Gulf International Services, Quarterly Trading Statement (2017, Q1) 3 the group.
Net Profit
Group net profit for the period ended June 30, 2017 closed at QR 15.8 million. Earnings per share was QR 0.09 as of June 30, 2017. The impact on the profitability was due to significant revenue reduction in drilling, catering and insurance segments, despite marginal improvement in the aviation segment performance.
Cash position
Cash position remained strong with closing cash of QR 1.0 billion across all group companies as at June 30, 2017.