Gulf International Services (GIS) has posted a net profit of QR160.7mn in the first six months of this year.
The “largest services group” in Qatar with interests in a broad cross-section of industries ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge and helicopter transportation to catering services earned revenue of QR1.6bn in six months up to June.
But group revenue fell 30% in H1 compared with QR2.3bn in the first half of 2015, GIS said in a statement yesterday.
This reduction, it said was “due to ongoing downward rates revision and reduced level of activities across all group segments due to the challenging market conditions following the significant drop in the crude oil prices.” 
Group net profit also fell 73% in H1 compared to QR605.4mn in the first half of 2015.
Earnings per share (EPS) got reduced to QR0.86 for the period that ended in June compared to QR3.26 in in the same period of 2015. This year-on-year decrease was primarily driven by the challenges witnessed across all the segments due to the reduced level of activities and decline in contract rates.
GIS, however, enjoyed a “strong cash position” of QR1.14bn across the group, which shows an increase of QR181.2mn, or 18.9% on 2015.
The company’s total assets stood at QR11.5bn, up 2.5% on December, 2015, GIS said.
“Further to the unfavourable economic condition, the cost optimisation programme became a top priority among all group companies.
“As planned, the group embarked on a number of initiatives, including further rationalising the costs together with optimising the utilisation of operating assets and the supply chain.
“The group continues the initiatives by continuously monitoring its cost structure for further enhancements on cost optimisation,” GIS said.
Gulf International Services was incorporated as a Qatari joint stock company in February 2008 by Resolution Number 42 of 2008 of Qatar’s Ministry of Economy and Commerce, pursuant to its Memorandum and Articles of Association and Law Number 5 of 2002 concerning commercial companies. Gulf International Services’ authorised share capital is QR2bn and through the group companies, GIS operates in four distinct segments — insurance and reinsurance, drilling, helicopter transportation and catering services.

Related Story