Gulf International Services (GIS) – the holding entity of Gulf Drilling International, Gulf Helicopters (GHC), Al Koot and Amwaj – has reported a more than six-fold year-on-year jump in net profit to QR266mn in the first nine months (9M) of this year.
The group’s revenue grew 19% to QR2.7bn in 9M-2022. Revenue growth from the aviation, drilling and catering segments led to an overall increase in the group revenue. However, this was partially offset by decline in revenue from the insurance segment.
The direct costs grew 7%, mainly on higher commercial activity. Finance cost had significantly increased by 28% to QR123mn due to persistently higher interest rates.
Foreign currency revaluation losses from GHC’s Turkish subsidiary contributed “negatively” to the group’s profitability. General and administrative costs remained flat on a year-on-year basis.
Total assets stood at QR10.5bn at the end of September 30, 2022. Cash and short-term investments stood at QR1bn.
Total debt at the group level was QR4.29bn. Current levels of debt continue to weigh on the group net earnings, as finance cost is one of the key cost elements and specifically limits the drilling segment’s ability to accomplish its desired profitability.
The drilling segment’s revenue grew 33% to QR950mn, linked to the new rig day-rates implemented for the offshore fleet since the mid of last year (July 2021).
Redeployment of the two onshore suspended rigs (GDI-5 and GDI-7) during the third quarter of 2021, positively contributed to the topline performance for the current year. Moreover, full deployment of Gulfdrill JV’s fleet during the second quarter had a positive impact on the segment revenue for 9M-2022 on comparatively higher management fees.
The segment reported a net loss of QR40mn against a net loss of QR159mn the year-ago period, mainly attributed to growth in segmental revenue.
The aviation segment’s revenue grew 31% to QR689mn, on higher flying activity within domestic and international operations, coupled with growth in revenue noted across all the operations, including MRO business and international locations; especially Turkey and Angola.
The segment’s net profit rose 50% on an annualised basis to QR262mn at the end of September 30, 2022, mainly on growth in revenue and despite material impacts of currency devaluation from the Turkish subsidiary.
Revenue within the insurance sector fell 15% to QR632mn due to the loss of two insurance contracts within the medical line of business, since the start of current year. The decline was partially offset by growth in premiums from the general insurance line of business, on account of renewals of existing contracts with wider coverage and scope.
On the contrary, the segment’s net earnings increased by 3% to QR52mn, mainly supported by an overall decline in claims, which decreased by 40% on a year-on-year basis.
The catering segment reported a revenue of QR394mn, an increase of 53% compared to 9M-21, due to the growth noted in revenue within the manpower segment on the back of realisations from a new contract won during latter part of last year.
The segment was back in black with it reporting a net profit of QR1mn compared to a net loss of QR19mn for 9M-21, mainly due to higher revenues and better margins.
