Nakilat H1 profit drops to QR359.6mn, but QNBFS maintains long-term bullish view

Nakilat posted a first-half net profit of QR359.6mn, down from QR380.8mn a year earlier.

Nakilat (Qatar Gas Transport Company), which is one of the world’s largest shippers of liquefied natural gas (LNG), said its losses from derivatives trebled in the first six months of 2013 to QR15.1mn compared with a loss of QR4.6mn in H1, 2012.

According to QNB Financial Services (QNBFS) Nakilat reported lower-than-expected second-quarter results with revenue from wholly-owned vessels falling 4% short of QNBFS estimate of QR742mn (almost -1% quarter-on-quarter; flat year-on-year).

Nakilat’s earnings before interest, tax, depreciation and amortisation (EBITDA) of QR581mn fell below the estimate of QR600mn. Net income of QR182mn (+3% Q-o-Q; 11% Y-o-Y) was also impacted by QR3mn in losses from derivative instruments in joint ventures, which QNBFS said it did not model. Excluding this, net income was 13% softer than the estimate of QR212mn.

QNBFS said Nakilat’s 2013 estimates were likely to be revised downward though it would retain a long-term bullish stance on the gas shipper.

“Given the company’s H1, 2013 financial performance, we are likely to revise our 2013 full year estimates downward. Near-term catalysts remain limited beyond EPS accretion due to debt repayments/refinancing. However, we continue to expect the company’s wholly-owned LNG shipping business to post stable EBITDA on an annual basis (despite quarterly volatility).

“The recent announcement regarding fleet expansion of jointly-held LNG vessels to 29 to 31 by early 2014 is incrementally (albeit marginally) positive in terms of earnings. However, this deal could be a precursor of things to come if Nakilat can indeed replicate its success beyond Qatargas and RasGas. Nakilat remains a vital link in the State of Qatar’s LNG value chain and we maintain our long-term bullish stance on the company,” QNBFS said.

Islamic Holding posts QR4.4mn profit

Islamic Holding Group posted a net profit of QR4.4mn in the first half of this year compared with QR4.18mn in the same period last year. Company chairman and managing director Dr Yousuf Ahmad al-Nama said the results confirmed that the group was working on consolidating its position in the domestic market and making efforts to improve its various activities.