Dubai-headquartered Gulf Navigation is heading back into calmer waters when it comes to financials, reporting a profit for the third quarter. And putting some distance from the Dh5.8 million sustained in the second quarter. Image Credit: Supplied

Dubai: The Dubai-based shipping company Gulf Navigation Holding has seen a timely drop in its accumulated losses brought about by a capital increase. The accumulated losses at the end of September represent 52.3 per cent of capital against 65.9 per cent in June.

Net profit for the third quarter came to Dh4.2 million against Dh5.8 million a year ago, as the company gained from refinancing its vessels at a lower rate. Another move was to charter ships with ‘trusted clients on long-term basis and exiting unprofitable business sectors,” Gulf Navigation said in a statement.

The company has a fleet of chemical tankers, livestock transport vessels, operation support vessels, marine services, and ship repair operations.

It was in August that it refinanced 5 petrochemical tankers under ‘new and preferential terms for a period of 5 years’. More than Dh85 million of debt was turned into shares, which led to reducing the total cost of borrowing, reducing the percentage of accumulated losses and reducing total liabilities by 16.5 per cent from Dh457 million as at December last to under Dh382 million during the first nine months of 2022.

On a nine-month basis, Gulf Navigation’s net profit is at Dh1.75 million, weighed down by th Dh5.8 million loss it reported for the second quarter. Operating revenue for these nine months increased 16.6 per cent to Dh104 million, driven in the main by the petrochemical vessel chartering and agency business, compared to Dh89 million last year. Total assets are at Dh814 million.

Capital increase

The company's capital base has been increased to Dh1.27 billion from Dh1.01 billion through converting certain Sukuk and debt to equity. "The results for the first nine months of 2022 demonstrate a solid operational and financial performance, supported by cost control measures, a strategy of growth and expansion and reducing the cost of debt," a statement added.