Gulf International Services (GIS) announced its financial results for the first three months ended March 31, (Q1 2019) with a revenue of QR719m, EBITDA of QR188m and net profit of QR25m.
The group’s revenue for the period was QR719m compared to revenue of QR611m in the previous year, up by 18 percent, with the insurance segment reporting the highest increase.
The group’s net profit for the same period closed at QR25m, with earnings per share of QR0.14, compared to QR9.5m net profit and QR0.05 earnings per share in the previous year. The aviation and the catering segments were the main contributors to the increase.
Revenue in the insurance segment improved significantly versus last year mainly due to capturing new accounts within the energy and medical lines of business, in addition to regaining some of the previously lost businesses. On the other hand, net profit remained flat compared to last year due to higher net claims and reinsurance costs.
The drilling segment reported a marginal growth in revenue, mainly due to the deployment of the new offshore drilling rig “West Tucana” contracted to Qatar Gas via a strategic partnership with Seadrill. In addition, the company will continue bidding for future contracts whenever an opportunity arises.
The operating profit witnessed a significant increase of more than 50 percent year-on-year, due to increased revenue together with optimized costs. However, the segment’s net loss remains flat on last year, primarily due to increase in finance costs.
The aviation segment reported a moderate growth in revenue compared to last year, mainly as a result of the growth of activities in its international operations, while maintaining the commercial aviation position locally. The growth in the international operations along with savings in G&A expenses resulted in a notable increase in net profits.
The group’s closing cash stood at QR910m as at March 31, 2019 with a total debt of at QR4.9bn, where the drilling segment representing 90 percent of the group debt.
