Gulf Navigation Holding reports dip in Q1 profits

Dubai: Gulf Navigation Holding PJSC, one of the leading non-state ship owning and maritime services company in the region, reported net profits of Dh0.22 million during the first quarter of 2011, down from Dh3.07 million recorded in the same period last year.

Net Operating Revenue accounted for Dh68.69 million compared to Dh67.17 million for the fourth quarter of 2010 and Dh80.18 million for the same period in 2010. Operating profit before depreciation, finance costs and non operating items was Dh9.89 million for the fourth quarter of 2010 and it accounted for Dh25.53 million in the 1st quarter of 2011 as against Dh35.80 million for the same period last year. The company's total assets as of March 31, 2011 stood at Dh2.691 billion compared to Dh2.41 billion at 31st December 2010.

During the 1st quarter of 2011, Gulf Navigation Holding started executing its 5 year plan by purchasing and chartering "Gulf Eyadah", a 300,000 dead weight tonne (dwt) Very Large Crude Carrier (VLCC), and building two new 320,000 dwt VLCC carriers. The ships will join the fleet in 2012 and 2013 and will be immediately delivered for 10-year charter agreements worth approximately Dh1.05 billion ($284.7 million).

Gulf Navigation's 5-year strategic plan 2015 also calls for expansion of the VLCC fleet to 9 vessels (18 million barrels), the chemical fleet to 12 ships, and development of Aframax and offshore fleets.

The Company is also forming subsidiaries for consequential listing in international stock exchanges, in order to provide added share value to its shareholders. Gulf Navigation began the process last month in Riyadh, where it appointed Deutsche Securities and King & Spalding to establish a specialised VLCC joint venture with Gulf partners.