Gulf Navigation shares fall over 4% after profit announcement

Dubai: Shares in Dubai-listed Gulf Navigation fell by over 4 per cent on Sunday following the announcement of a 123 per cent rise in profit for the first nine months of the year.

The shipping company made Dh15.68 million ($4.28 million) in profit in the nine months to September 30 compared to Dh7.03 million a year ago, according a statement posted on the Dubai Financial Market (DFM). Revenues for the period rose 11 per cent to Dh104.70 million, up from Dh94.31 million a year earlier.

But shares listed on the DFM fell 4.03 per cent to close the day at 50 fils.

Gulf Navigation has struggled in recent years with reports on mounting debts despite rising profit and revenues. In 2013, the shipping company had two of its vessels seized by creditors after it defaulted on loans. The ships were later sold.

In Sunday’s statement,Founder and Chairman Hazza Baker Al Qahtani said incomes was bolstered by a “healthy increase” in shipping services and marine product sales and distribution business as well as improvement in tanker spot rates, and reduction in off-hires.