BY MOHAMMAD SHOEB
DOHA: Qatar Navigation Company (Milaha) recorded a net profit of QR344.6m for the first three months of 2013, up 21 percent compared to QR283.7m for the corresponding period last year, Sheikh Ali bin Jassim bin Mohammad Al Thani, Chairman and Managing Director of Milaha, announced yesterday.
The company’s earnings per share (EPS) amounted to QR3.01 for Q1, 2013 compared to QR2.47 for the same period in 2012.
Asked if the company has expansion plans to add more vessels to the existing fleet, he said: “Yes we have plans to increase our fleet size. But I would not like to give more details about it as our team is still working on it. The sharp increase in the financials of the company is the result of the transformation.”
Sheikh Ali added: “Some of our expansion plans and strategies have already been approved by our Board of Directors (BoD). The management is still in the process of implementing them. But keeping in view the volatility of the shipping industry, we are moving ahead step by step. So we are very careful about it.”
However he added that the company is currently focusing on the shipping industry, containers, chemicals and other offshore services. “As many global shipping companies have suffered huge losses, we are more cautious and careful about our expansion strategy.”
According to the company, its ongoing internal transformation initiatives along with improved market conditions drove strong performance.
When asked to elaborate ‘internal transformation’, he said: “We are restructuring our group inside the organization. Without this it would not have been possible to achieve these financial results.”
The operating revenues of the company from January to March stood at QR691.6m compared to QR631.6m for the same period in 2012, an increase of nine percent year over year.
Volume growth combined with increased efficiencies resulted in a continued upward trend for Milaha’s port services unit. Container shipping, logistics and bulk shipping results also improved significantly over Q1, 2012.
Deployment of one new vessel combined with higher utilisation of the fleet led to a strong improvement in Halul Offshore’s results relative to Q1, 2012.
Milaha’s LNG vessel joint ventures and operating partnerships improved profitability, while lower charter rates led to a modest decline, relative to Q1, 2012, for Milaha’s fully owned tankers and gas carriers. The company’s investment portfolio posted strong results, mainly driven by dividend growth, revaluations and market trading activities.
“We are very pleased with the group’s performance as a whole. Coming on the back of a strong 2012, we have continued our positive trajectory,” added the Chairman and Managing Director. “The most encouraging aspect is that our core businesses in maritime transport and services have started the year well.”
Milaha’s BoD has also approved a share re-purchase programme of up to five percent of the outstanding shares of the company. This programme will be implemented once the company has obtained all approvals and completed the necessary steps. The company plans to fund this re-purchase by using its significant investment portfolio.
“The strategic and transformative journey that we began two years ago has started to reflect in the financial performance of the group,” added Khalifa Ali Al Hetmi, President and Chief Executive Officer of Milaha. “We intend to continue on this journey to build a stronger, more sustainable Milaha for our shareholders.” The company will conduct an investor conference call on Thursday (May 2) at 3pm to further discuss its financials.
The Peninsula
