Dubai: Dubai-based Gulf Navigation reported a 43 per cent increase in first half profit on Tuesday.
The shipping company made Dh14.36 million in the six months to June 30, 2016 compared to Dh10.04 million a year ago, according to financial statements posted to the Dubai Financial Market (DFM). Half-year revenue rose by 6 per cent to Dh74.4 million, up from Dh70.1 million a year earlier.
However, the company remains in breach of a number of convent agreements with its lenders. Net liabilities as of June 30, 2016 were Dh587.9 million and its accumulated losses were Dh227.9 million. Auditor E&Y said the company’s ability to continue would be dependent on the availability of external debt financing, additional equity or reversing or mitigating adverse legal awards.
One option the company is considering is the issuance of mandatory convertible bonds, which its shareholders approved on January 18.
In the second quarter profit rose by 57 per cent. Gulf Navigation made Dh8.02 million in the three months to June 30 compared with Dh5.01 million a year earlier. Second quarter revenue was flat at Dh36.1 million.
Former Drydocks World chairman Khamis Bu Amim was appointed as managing director in the second quarter.
Shares in Gulf Navigation closed down 0.93 per cent to Dh1.06 on Tuesday.
