Stock Gulf Navigation 2
Gulf Navigation's 9-month 2023 revenues came in lower, which is attributed to the sale of a petrochemical tanker and other vessels being at dry dock. Image Credit: Supplied

Dubai: Gulf Navigation, whose DFM-listed stock is flying high this year by gaining 300 per cent, has brought more cheer for shareholders – with a 9-month profit of Dh34.6 million against Dh1.7 million a year ago.

The shipping company clearly benefited from the series of financial turnaround and expansion plans effected over the last 12 months and more. But the biggest boost came by way of ‘other non-operating income’ delivering Dh39 million to the operating profit in this period.

This Dh39 million included Dh18 million from gains in settlement of a Sukuk, completed in September. There was also Dh19 million coming from write-back of loans and related accrued interest.

“These funds will definitely help with Gulf Navigation, more so if it’s successful in acquiring the Fujairah energy services company Brooge,” said an analyst. “That would be one good fit at a time when the energy services marketplace is going through all sorts of high growth forecasts.

“Clinching Brooge will be decisive for medium-term prospects.”

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Gulf Navigation's total assets gained 27% to about Dh1 billion at the end of September

Operational side

The Dubai company did see a drop on the revenue side in the first nine months of 2023, tallying Dh83 million against Dh104 million last year. The lower top-line resulted from the sale of one of its petrochemical tankers and due to dry dock operations (which put those vessels out of commission during the period).

A top official said the focus will remain on getting through the longer term, and with sound financials acting as ballast. “We succeeded in the implementation of the capital increase process and transforming the company from loss-making to profit-making within 3 years by completing the capital structuring process,” said Ahmed Kilani, CEO.

“In addition to taking the necessary measures to improve the performance of the vessels, reduce financing costs and convert a large portion of the company’s debts into equity shares.” - Ahmed Kilani Image Credit: Supplied

The debt to equity helped Gulf Navigation’s capital to weigh in at Dh838 million. This was done through issuing 220 million mandatory sukuk to new investors and converting them to 200 million shares.

“The funds will contribute to increasing and modernizing the fleet of petrochemical tankers and enhancing the company's ability to own and manage these types of vessels,” said a statement.

Plus, if the Brooge deal happens, it all slots into wider exposure within the trending petrochemicals space.