Aided by robust core earnings, Milaha reported 4% rise in net profit to QR365mn in the first quarter (Q1) of this year.
Operating revenues grew 12% to QR786mn and operating profit by 2% to QR279mn, the company said.
“Strong year on year growth in the core businesses more than offset a decline in the returns from Milaha’s investment portfolio,” a company spokesman said.
Each of Milaha’s core segments – maritime and logistics; gas and petrochem as well as offshore – improved their combined bottom line by 71% relative to the first quarter of 2014.
“We are very pleased to have started 2015 so strong. While we hope to maintain the momentum, we know that general market conditions for our offshore segment are weakening, and that our capital segment is heavily tied to uncertainties in the local equity market. It will be a challenging year,” Milaha chairman Sheikh Ali bin Jassim al-Thani said.
Continued strong growth in trade volumes, driven by the ramp up in the project activity in Qatar, resulted in a 25% increase in revenue and 175% increase in net profit for Milaha Maritime and Logistics with a positive impact on port services and container shipping units in particular, the spokesman said.
Gas and Petrochem’s revenue jumped 39% and net profit by 45%, on the back of stronger performance in its fully owned and operated product tanker and gas carriers as well as higher VLGC rates relative to Q1 2014. In addition, the segment benefited from the full-year effect of 19 harbour vessels, some of which were received through mid year 2014.
Milaha Offshore fared significantly well compared with Q1 2014 despite weaker market conditions driven by the steep decline in oil prices and the cutbacks on capital spending by oil majors in the region and beyond, the spokesman said.
The actively managed investment portfolio of Milaha Capital, despite outperforming the Qatar Stock Exchange index, was “negatively” impacted by the volatility in Qatar’s equities market in the first quarter, driving a 31% decrease in the segment’s net profit, according to him.
“The core businesses have done extremely well to take advantage of the favourable market conditions where possible, while also maintaining strong cost discipline,” Khalifa Ali al-Hetmi, president and chief executive of Milaha, said.
Sheikh Ali (left) and al-Hetmi: Hoping to maintain the momentum.
