Milaha posts nine-month net profit of QR363mn

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Sheikh Ali and al-Mannai: Good momentum going into Q4.

Milaha has registered a net profit of QR363mn in nine months up to September, the company said last night.  In the same period last year the company had earned a net profit of QR759mn.
Milaha’s current activities include marine transportation in gas, petroleum products, containers and bulk, offshore support services, port management and operations, logistics services, shipyard, trading agencies, real estate investments and asset management.

The company earned operating revenues of QR1.66bn and operating profit of QR200mn in the nine-month period. The company’s earnings per share stood at QR3.19 for the nine months that ended in September compared to QR6.68 in the same period in 2016 Milaha Maritime & Logistics’ net profit declined by QR13mn September relative to last year. However, net profit increased significantly quarter-on-quarter, from QR5mn in Q2, 2017 to QR70mn in Q3 2017, driven mainly by volume increases in container shipping and port services.

Milaha Gas & Petrochem’s net profit declined by QR138mn, mainly due to vessel oversupply and depressed rates that have impacted most of the tanker and gas carrier sectors in which Milaha operates, in addition to lower profits from our joint venture operations. Milaha Offshore’s net profit declined by QR126mn (including one-time impairments of QR57mn), driven mainly by continued global vessel oversupply and lower demand, which negatively impacted charter rates and utilisation across the entire sector.

Milaha Trading’s net profit declined by QR5mn due to lower sales volumes of marine fuels and lubricants. Milaha Capital’s net profit declined by QR115mn due to lower held-for-trading investment returns and an available-for-sale investment impairment from the first quarter of 2017. Milaha chairman Sheikh Ali bin Jassim al-Thani said, “The weakness in the shipping and offshore marine sectors continued to negatively impact our results, however, I’m pleased to say that net profit improved significantly quarter-on-quarter from Q2 and Q3. We believe we have good momentum going into Q4.”

Milaha president and CEO Abdulrahman Essa al-Mannai said, “We are naturally taking concrete steps to manage our costs, however, we also feel encouraged to see a number of new growth opportunities in the short and medium across our portfolio of services, which will allow us to strengthen our market position.”