Gulf International Services, a holding company for Gulf Drilling International (GDI), Gulf Helicopters (GHC) and Al Koot - has reported a 64% jump in net profit to QR464.3mn in 2012 on an across-the-board performance and due to its acquisition of Amwaj catering company.
The company has suggested a 15% cash dividend, which needs approval at the annual general assembly.
The company’s board also forecast that in 2013, revenue is expected to reach QR2bn, net profit to QR0.5bn and net assets to QR3.1bn and said it was due to the change in the financial reporting method and not because of any operational factors.
“The group closed the year with revenue of QR2.2bn and net profit of QR464.3mn, benefiting from growth across all segments and the acquisition of Amwaj Catering Services,” Ebrahim al-Mannai, chief coordinator, GIS, said.
Profit in the insurance segment (Al Koot) significantly improved due to factors, including improved margins, growth in net premiums, higher management fees from Qatar Petroleum’s group life fund, gains from structured and fixed income instruments and weak 2011 comparatives.
Profits in the aviation segment (GHC), the major contributor to the group’s earnings, increased to QR200.6mn, its highest level since the group was incorporated in 2008. This year-on-year performance was aided by strong headline growth, improved available for sale investment closing values and weak prior year comparatives.
The year-on-year positive profit variance in the drilling segment (GDI) of QR61.4mn was largely attributed to stable drilling operations in 2012, in contrast to the early part of 2011 where business was disrupted by extended contractual start-up delays resulting in the incurring of significant “unrecoverable overheads” that dampened margins.
Profit in the drilling segment was also aided by the commencement of operations of Zikreet barge in the early part of 2012, and two onshore rigs in the last quarter of 2012.
For the seven-month period ended December 31, 2012, the catering segment contributed QR17mn to group profit.
On the revenue side, the group’s insurance subsidiary registered record full-year gross insurance revenue of QR624.4mn, registering 14% improvement on 2011. The primary drivers for the year-on-year performance were growth in sums insured and premium inflation in the core energy business, and the ongoing success of the medical line’s market expansion plan.
The aviation segmental revenue totalled QR513.6mn, a 16% rise over 2011. Several factors contributed to this increase, the most important of which was a general increase in flying hours, the commencement of new operations within the Gulf, the commercial launch of the flight simulator and pilot training facility in Doha in the second quarter of 2012, and the resumption of normal operations in Libya.
Revenue in the drilling segment grew 30% to QR623.6mn due to a higher number of rig operating days, the commencement of operations of the accommodation barge, and the addition of two onshore rigs.
The fourth quarter of 2012 represented the second full quarter since the inclusion of Amwaj, as the company contributed QR427.2mn to full year group revenue.