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 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 period ended 30 September 2018 with revenue of QR 1,961 million and net profit of QR 39 million.
The group’s revenue for the period ended 30 September 2018 was QR 1,961 million, up marginally by circa 5% on the previous year. Revenues in the insurance segment improved significantly versus last year primarily due to capturing of new business in the energy / general insurance segment, while the drilling segment reported a slight growth in revenue due to operations of some of the assets which were not contracted in the previous year. Revenue in the aviation segment was slightly up on last year despite reduction in revenues from Qatar’s aviation operations, which was offset by the increase in the other revenue streams. Revenues in the catering segment was moderately down on last year. Project demobilization, reduced camps occupancy were the main reason for this reduction. The reduction was however somewhat offset by other revenue streams.
The group’s net profit for the period ended 30 September 2018 closed at QR 39 million, 78% up on same period of last year. Earning per share is QR 0.21, compared to QR 0.12 last year. The improvement on last year was primarily driven by the continuous efforts of cost reduction across all segments following the implementation of some aggressive cost optimization and growth initiatives by the group in some selected business segments. The improvement realized in the drilling segment was somewhat offset by lower profit in the aviation segment.
Performance Improvement Efforts
GIS is continuing the execution of some of the opportunities identified by the growth strategy initiatives that was concluded earlier this year. 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.