Gulf International Services (“GIS” or “the group”; QE: GISS), one of the largest services groups in Qatar, with interests in a broad cross-section of industries, ranging from insurance and re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, maintenance, repair and overhaul operations, and catering services, announced its financial results for the year ended 31 December 2018 with revenue of QR 2.5 billion and an EBITDA of QR 746 million.

Financial Results

Revenue

The group’s revenue for the year ended December 31, 2018 was QR 2.5 billion, marginally up by QR 0.1 billion or 5% over the last year. All segments, except the catering segment, reported growth over the previous year. The aviation segment witnessed a marginal growth versus the previous year. Ex-Qatar aviation revenue and revenue from other ancillary services grew moderately. The insurance segment was able to regain some of the previously lost businesses in addition to capturing new businesses in both the energy and medical lines of business, resulting in a significant increase in revenue. The catering segment witnessed a reduction on last year, primarily due to demobilization of some of the projects and reduced occupancy in the camps. Drilling segment witnessed a marginal growth on the previous year, the segment benefited from the deployment of some of the assets that were not previously contracted and the recovery of the crude oil prices.

EBITDA and Net Profit

The group reported an EBITDA of QR 746 million marginally up on last year. An increase in the revenue and savings in the general and administrative expenses resulted in an increase in the EBITDA from last year.

Net profit, on the other hand, decreased on last year, and the reported net loss for 2018 was QR 98 million. This loss was due to increased finance costs resulting from a hike in policy interest rates and recognition of one-off expenses relating to the impairment of assets in the drilling segment.

Performance Improvement Efforts

GIS is continuing the execution of some of the opportunities identified by the growth strategy initiatives that were concluded in early 2018. These opportunities include the recently announced agreement between GDI and Seadrill to utilize synergies in Qatar’s offshore drilling market, continued assessment of the group’s operation to capture potential revenue enhancement and cost improvement opportunities. The implementation of these initiatives, which are in various stages of completion, is progressing well. The group expects that the completion of these initiatives will bring the intended benefits.