News Column

GIS net profit in 2013 up 45.8pc to QR0.7bn

February 24, 2014

DOHA: Gulf International Services (GIS), the largest services group in Qatar with interests in a broad cross-section of industries, recorded a net profit of QR0.7bn for the full-year 2013, a significant year-on-year increase of QR0.02bn, or 45.8 percent.  The Group's revenue closed at QR2.3bn in 2013, an increase of 47.1 percent against 2012 revenue.

H E Dr Mohamed bin Saleh Al Sada, Minister of Energy and Industry, Chairman and Managing Director of Gulf International Services noted in a statement to the Qatar Exchange: "The GIS group exceeded expectations in 2013. These are the highest year-end results since inception and a remarkable achievement in the group's short history."  "This positive growth reiterates our historical commitment to the goal of maximising shareholders' wealth. These strong results were aided by the ambitious growth plans in all segments, and the acquisition last year of Amwaj Catering Services Limited," the minister added.

The Board of Directors recommend a total annual dividend distribution of QR 297.3m, equivalent to a payout of QR2 per share and representing a 20 percent of the nominal value, and 25 percent bonus shares.

On the performance of the group's drilling segment, Ebrahim Al Mannai, Chief Coordinator, Gulf International Services said: "This has been a busy year for Gulf Drilling International, as two, new, high specification, premium offshore rigs were deployed: the first, Al-Jassra, joined the fleet in May 2013, with the second, Leshat, starting operations in December 2013."  "GDI also confirmed during the year that it had entered into a definitive agreement for the purchase of a standard jack-up drilling unit subsequently named Msheireb that, after undergoing refurbishment and upgrade, is expected to commence drilling operations in the second quarter of 2014," he said.  "This year was an exciting year for the Aviation segment, with Gulf Helicopters Company signing a firm order with AgustaWestland for 15 AW-189s," Al Mannai added.

Commenting on the insurance segment, Al Mannai said, "As part of the insurance segment's growth plan, Al Koot actively explored new opportunities for its medical insurance line of business. To this end, the company successfully secured a number of major, new clients thereby increasing the number of medical policyholders by 15,000 to a total of over 115,000."  "It should also be noted that the wide-ranging discussions Al Koot had been involved in with the Government of the State of Qatar were put on hold indefinitely," he said.

The revenue in the drilling segment closed the period ending December 31, 2013 at QR912.2m, a remarkable year-on-year increase of QR288.7m, or 46.3 percent. This performance was driven largely by the offshore sector.

The favourable year-on-year positive net profit variance in the drilling segment of QR99.6m, or 68 per cent, was driven primarily by the commencement of Al-Jassra and Leshat operations, and the higher daily rates in three new offshore rig contracts, which all helped offset the 105  days of planned maintenance undertaken for Al-Wajba during the year.

The group's insurance subsidiary registered gross insurance revenue of QR707.0m, a resolute QR82.5 million, or 13.2 percent, improvement on 2012.  The main contributor to this growth was the medical line of business, as an additional 15,000 members joined the hugely successful Al Koot Global Care Medical Insurance Scheme during the year.  The medical line of business has now grown on average by an annual average of circa 20 percent per year since 2009, and now contributes 33.9 percent of Al Koot's annual revenue.  Results in the core energy line showed a noteworthy growth of 5.1 percent, in line with Qatar Petroleum's reduced capital expenditure activity.  Revenue was up on the last quarter by QR8.5m, or 4.7 percent, mainly due to an increase in net commission income in the energy insurance business.

The catering segment was the largest contributor to group revenue, accounting for QR976.9m, or 42.4 percent.  The segment's 123.8 percent increase in year-on-year revenue was only partially due to weak comparatives following its acquisition on June 1, 2012.  The growth was also due to the expansion of the core industrial catering and manpower contracting services to almost 100 projects throughout Qatar. On a quarterly basis, Amwaj's performance was strong with revenue increasing by 10 percent.

The Peninsula

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Source: Peninsula, The (Qatar)

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