Dubai: Gulf Navigation Holding (GNH) Sunday reported a drastic drop in its net profits for 2009, down from Dh148.22 million in 2008 to Dh26.55 million in 2009.
The company attributed the fall in profits to the economic downturn in 2009.
"The global drop in oil consumption, combined with delivery of new vessels had an unprecedented effect on shipping rates [has caused the decline]," Per Wistoft, CEO, GNH, said in a statement released by the company. "We are very optimistic about 2010 and confident that we will be able to take advantage of the opportunities it presents."
The company plans to continue with its plan to expand its fleet.
GNH currently has 12 ships in operation, but hopes to have 20 ships by the end of this year.
According to a statement released by Wistoft and published by the DFM, the company is in the process of purchasing four new tankers.
"Although 2009 was a very challenging year for the marine industry, GulfNav's performance was remarkable. We generated profits, positive cash flow and operated our vessels to the satisfaction of our clients," Abdullah Shuraim, chairman of GNH, said in the statement.
"We look forward to 2010 as a year of expansion. We believe that tanker prices are now more realistic, and combined with our strong cash position, we will be able to expand our fleet to meet the tremendous growth of Gulf chemical and oil production in the beginning of 2012," Shuraim said.
GNH board of directors approved the annual budget for 2010 and approved a share buyback strategy to be implemented during 2010, which will be done in full compliance with regulatory approvals and procedures.
