Qatar Navigation (Milaha) recorded a net profit of 469.8 million Qatari riyals (U.S. $129.1 million) for the year, as operating revenues slipped 2.4 percent to QAR 2.49 billion, according to the company’s most recent financial statements.
Profits in Milaha’s maritime and logistics segment fell 15.9 percent year-over-year to QAR 119.3 million (U.S. $32.8 million) as revenues slid 5.9 percent to QAR 945.1 million. The company attributed the earnings decline primarily to QAR 33 million in vessel impairments in its container shipping unit.
“Excluding impairments, the [maritime and logistics] segment outperformed 2016 by 7 percent, largely due to a strong increase in container volumes in our port services unit,” Milaha said.
The company’s gas and petrochemical unit saw its net profits tumble 64.9 percent to QAR 145.8 million compared with the previous year. Revenues for the segment were down nearly 15 percent to QAR 387.2 million due to continued “significant challenges” in the shipping sectors in which Milaha operates, which impacted both commercial performance as well as vessel valuations, the company said.
Milaha’s offshore segment, meanwhile, posted net loss of QAR 184 million for the full year in 2017, compared with a QAR 113 million loss the previous year, on revenues that slid 21.3 percent to QAR 450.9 million.
Profits in the company’s real estate and investment services arm, Milaha Capital, on the other hand, shot up nearly 60 percent to QAR 401.7 million in 2017, thanks to a 64.5 percent year-over-year jump in operating revenues to QAR 672.5 million.
Milaha Trading, which is engaged in trading trucks, heavy equipment, machinery and lubrication brands in Qatar, saw its earnings plummet 88.1 percent to just over QAR 1 million on revenues that slipped 2.6 percent to QAR 304 million compared with 2016.
“Despite the unexpected events and ongoing industry-wide challenges during the year, Milaha remained profitable in 2017, driven by a stronger operating performance in the third quarter onwards, which we believe, sets the stage for a successful 2018,” said H.E. Sheikh Ali bin Jassim Al Thani, chairman of Milaha’s board of directors. “Going forward, we will continue to focus on driving growth and executing on our strategic priorities.”
“We finished 2017 with strong momentum to carry us into 2018 and beyond,” added Milaha President and CEO Abdulrahman Essa Al-Mannai. “This reflects the success of the new shipping routes and supply chain solutions we launched throughout the year. Additionally, we continued to improve the cost structure of our businesses, expand our value proposition, and we remain on track to deliver sustained short and long-term growth.”
Milaha earnings sink 34% in 2017
