Dubai: Dubai-based shipping company Gulf Navigation Holding announced a significant turnaround in its financial performance for the first-half of 2023. The company reported a net profit of Dh28 million in first-half of 2023, compared to a net loss of Dh2.5 million for the same period in 2022.
Gulf Navigation attributed this positive outcome to its continued efforts to enhance growth, exercise cost control measures, and improve operational efficiency, as stated in its financial reports.
Operating profits for the company soared to Dh23 million, a substantial increase from the previous year’s figure of Dh4.5 million. Gulf Navigation also recorded gross profits of Dh11 million, while its total assets stood at Dh759 million.
The company’s retained earnings reached Dh6 million in the first-half of 2023, in sharp contrast to the accumulated losses of Dh679 million during the same period in 2022. Furthermore, Gulf Navigation achieved net profits of Dh14 million in Q2-2023, compared to net losses of Dh4 million in the corresponding period last year.
The shipping vessel operator successfully eliminated all accumulated losses in Q2-2023, totaling Dh679 million, which accounted for approximately 66 per cent of the company’s capital in the second quarter of 2022. Through a capital reduction process, the company converted these losses into retained earnings amounting to Dh6 million in the second quarter of this year.
“Thanks to the measures taken by the Board of Directors to improve the financial results, the Company managed to write off all the accumulated losses for the first time in the history of the Company in more than 10 years.” said Ahmad Kilani, Board Member and Managing Director. “It is worth mentioning that Gulf Navigation had issued its Q1 financial statements without any qualification or going concern by the external auditor for the first time in several years.”
Our outlook remains positive for the remainder of the year, especially as we are in the process of completing the capital increase process, which in turn will contribute to increasing and modernizing the company’s fleet of petrochemical tankers and enhancing its ability to own and manage these types of vessels
Total shareholders’ equity witnessed a notable increase of 16 per cent, reaching Dh487 million as of June 30, 2023, compared to Dh419 million in H1-2022. The company also achieved a reduction in operating costs to Dh54 million in H1-2023, compared to Dh60 million during the same period in 2022, primarily due to the sale of the “Gulf Mishref” vessel.