Gulf International Services (GIS) is expecting to further invest QR1.5bn over the next five years as part of a growth strategy aimed at improving efficiency and reducing operating costs.

Addressing Monday’s annual general meeting at the La Cigale Hotel, Doha, GIS chairman Sheikh Khalid bin Khalifa al-Thani told shareholders that despite “challenges and setbacks” in 2017, GIS was able to deliver “a modest performance” last year.

“Nevertheless, I am optimistic about the future performance of GIS in the medium and long run. There are a number of opportunities which are potentially available to GIS in the immediate future,” Sheikh Khalid noted.


GIS chairman Sheikh Khalid bin Khalifa al-Thani speaking at the company's annual general meeting in Doha. PICTURE: Jayan Orma

He said the opportunities include additional drilling requirements and aviation services with Qatar Petroleum’s recent plans to develop the North Field, and new drilling services arising from the commencement of operations of QP’s new joint venture, North Oil Company.

Sheikh Khalid continued, “Al-Koot is now better equipped to provide a broader insurance; the government is considering the provision of health insurance to Qatari citizens via private insurance companies. This will provide an opportunity for Al-Koot to participate and expand its insurance capabilities.”

He said the group appointed a world-renowned consulting firm to develop a growth strategy, which identified a number of initiatives, including achieving the full potential across the group companies, together with exploring common synergies.

“We have developed specific plans for each subsidiary, which is now in implementation phase over a five-year cycle. In addition, this has identified several new strategic investment opportunities, specifically in the drilling and aviation segments which are the key focus of our future growth,” the chairman noted.

Sheikh Khalid said the group reported a revenue of QR2.5bn and net profit of QR85mn (up 27% or QR18mn y-o-y), while total assets stood at QR10.4bn in 2017.

“Furthermore, we were able to generate operating cash flows of QR 0.7bn, affirming the group’s ability to generate stable cash flows even under turbulent trading conditions experienced in 2017,” he said.

Sheikh Khalid also said the board of directors did not recommend a dividend for the current year “and will, instead, use the funds for investment opportunities identified in the growth strategy, whereby GIS will deploy the retained funds to invest in the group’s activities, capturing the growing demand locally and internationally.”