Gulf Navigation's accumulated losses now at Dh463.12m

Dubai: Gulf Navigation Holding is working on a Dh125 million non-convertible sukuk issue through a private placement, which it hopes will bring the needed funds to settle “overdue liabilities” and “repayment of overdue debt”.

Funds will also come in handy for capital requirements. Gulf Navigation had a difficult first-half, and accumulated losses stand at Dh463.12 million.

There was a decrease in revenue from its fleet, with “some vessels off-hire during first quarter 2020,” the company said in a statement. “One chemical tanker was earning low charter hire due to spot market volatility.”

The planned turnaround plan rests on the company being able to get its vessels hired again at “profitable rates” and thus reduce accumulated losses.

Plus, “The recent decline in oil prices will reduce bunker cost on certain vessels where the cost is borne by the Group… and expected to lead to higher profitability.”