Gulf International Services (GIS) has reported a net profit of QR189mn, translating into earnings-per-share of QR1.02, on revenue of QR2.3bn in the first nine months of this year.
The company — a holding entity of Gulf Drilling International (GDI), Gulf Helicopters, Al Koot and Amwaj — had, however, reported a higher net profit of QR822mn, translating into QR4.42mn earnings-per-share, on revenue of QR3.3bn in the corresponding period of 2015.
“This year-on-year decrease (in net profit) was primarily due to the reduced revenue despite a notable improvement in the operating costs,” GIS said after its board meeting.
The group is actively engaged in a series of initiatives to decrease its operating cost across the group companies, a GIS spokesman said, adding these initiatives include further rationalising costs together with optimising the utilisation of operating assets, and the supply chain.
“The group companies are actively seeking for new avenues of cost optimisation as it is a critical priority for the group given the current economic environment,” he said.
The reduction in revenues has been on account of downward rates-revision and reduced level of activities across all segments of the group due to the “challenging” market conditions faced by the group companies.
Revenue in the drilling segment was “significantly” impacted by the lower daily rates and utilisation of rigs following the drilling price plunge, which have “adversely” affected most of GDI contracts.
Aviation segment revenue was also down on 2015 due to lower flying hours, downward rate revisions and lower operations across the region.
Catering and insurance segments’ revenues were “moderately” affected due to demobilisation of contracts and lower rates on new contracts.
“Nonetheless, the group is continuously working on improving its revenue through a number of initiatives including exploring new opportunities in and outside of Qatar,” the spokesman said.