DOHA, QATAR- 07/02/2018: 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 December 31, 2017, with
revenue of QR 2.5 billion and net profit of QR 85 million, with a corresponding earnings per share of QR 0.46.
Group revenue for the period ended December 31, 2017 was QR 2.5 billion, notably down on last year by ~17%. The aviation and drilling segments’ revenue remained flat on the previous year. The catering segment’s revenue was impacted by the demobilization of major contracts. General downturn in medical and general insurance business and rate reduction affected the insurance segment.
The group’s net profit for the period ended December 31, 2017 closed at QR 85 million, up by 27% on last year, with an earnings per share of QR 0.46 for the year. The increase was primarily due to an increase in other income, as there was a one-off item relating to retirement of an asset in the drilling segment reducing the other income in the previous year. No such retirement during the year.
The cash position stood at QR 0.9 billion across all group companies as at December 31, 2017.
Performance Improvement Efforts
The group is in the process of executing a series of initiatives to better utilize its asset base and to decrease its operating costs across the group companies. 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 operating assets and the supply chain.
Proposed Dividend Distribution
For the period from the initial public offering in February 2008 to 2016, the group’s shareholders have received accumulated cash dividends of QR 2.6 billion, which is equivalent to circa QR 14.2 per share, with an average payout ratio of approximately 55%. In addition, shareholders have received a total of 63 million additional shares through three bonus issuances.
The Board of Directors, after taking the current and future operating, investing, and financing needs of the business, believes that a dividend payment in 2017 will add further burden to the group’s liquidity position, and will place many bottlenecks for future strategic development. As such, the Board of Directors has recommended no dividend for the 2017 and will instead use the funds for investment opportunities identified in the Company’s growth strategy; where GIS will deploy the retained funds to invest in the group’s activities, capturing the growing demand locally and internationally. We thank our shareholders for their continuous support during this difficult period.