Gulf Navigation H1 profit drops 89pc

Gulf Navigation Holding, a leading maritime services company, has posted a net profit of Dh10.18 million ($2.77 million) for the first half of 2009, a drop of 89 per cent compared to Dh92.96 million during the same period of 2008.

Revenues for the two quarters declined to Dh170.10 million versus Dh200.88 million for the first half of 2008. Operating profit was recorded at Dh67.55 million, a drop of 46 per cent versus H1 of 2008.

The company's total assets stood at Dh2.996 billion, up 4.6 per cent compared to Dh2.865 billion for the same period last year.

However, on the whole, this reflects a prudent step forward during a period of exceptional global financial instability, nevertheless showcases sustained focus on cost control and better adaptation of the current situations.

"Despite the worldwide decline in demand for transportation of energy, we at Gulf Navigation have been maintaining good rates for our long term chartered tankers," said Abdullah Al Shuraim, chairman of Gulf Navigation Holding.

"As for our six PROBO vessels which used to be chartered out, but now operated in the spot market, earnings have been in line with the market," he added.

"As a cash-rich company with strong cash flows, and constant initiatives to reduce costs, optimize operational efficiencies, and maintain best long and short terms chartering contracts this will together with the new fleet expansionary negotiation have a positive impact on our performance and results in the coming quarters."

Per Wistoft, the company's chief executive officer, said: "The first half of 2009 proved to be just as challenging as expected as none of our markets have shown any sign of recovery.

"In such difficult times, flexibility of the company's PROBO fleet showed its worth with a shift of several vessels from wet to dry whereby a further decline was avoided. In addition 5 vessels are still covered at respectable rate for the best of the year and beyond".

He added: "Operating a fleet to international standards is costly but necessary. We shall continue our work in optimizing technical and administrative processes." – TradeArabia News Service