Gulf International Services (GIS) — a holding entity for Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj — has reported net profit of QR54mn on 6% growth in revenue to QR1.6bn in the first six months of this year.
Net profit continued to reflect the growth across segments with aviation showing strong operational and financial performance on market expansion strategy.
Similarly, the drilling segment showed a moderate recovery owing to rationalisation of operating costs, including general and administrative expenses.
However, topline performance of the drilling segment was largely impacted by the lower rig utilisation rates, due to travel restrictions imposed to contain the spread of Covid-19 pandemic which affected the crew repatriation process, which led to a reduction in revenues compared to last year.
The operating profits improved 41% year-on-year to QR193mn in the review period, mainly attributable to the improved revenue compared to last year.
Finance cost shrank 21% to QR98mn in H1, 20, on the back of the declining interest rates.
Despite the macroeconomic challenges due to the spread of Covid-19 and recent deterioration of oil market, GIS repositioned itself by focusing on high assets utilisation, combined with expanding market share and rationalising operating costs, to build solid foundations for revenue and profit growth, said Sheikh Khalid bin Khalifa al-Thani, GIS chairman.
“This strategy has particularly helped all the segments to contribute to the group’s performance, which translated into the group’s improved financial performance," he added.
The drilling segment witnessed slight recovery net losses of 3% in H1-20, due to savings on direct operating costs and lower finance costs. However, drilling revenues declined 11% to QR522mn.
The aviation segment reported 16% jump in revenues to QR340mn, which translated into net earnings of QR362mn. The segment continued to maintain its leading position in the domestic market with 100% market share, while operating internationally in Europe, Africa and Asia, with a total fleet of 55 helicopters.
Revenue within the insurance segment for the six months period ended 30 June 2020, increased significantly by 23%, as compared to the same period last year, to reach QR470mn.
The insurance segment’s net profit grew 7% to QR12mn and revenues by 23% to QR470mn.
The revenue growth was on the back of successful renewal of policies, along with improved pricing terms on all major accounts within the medical segment, which provided an assurance of continued revenue streams over the year. Moreover, the segment was further able to add new clients within its medical line of business.
The catering arm saw a net profit of QR5mn on revenues of QR227mn. The revenue saw 9% growth due to successful expansion of core industrial catering and manpower contracting services and higher occupancy levels at Mesaieed and Dukhan camps.
The group’s total assets stood at QR11bn. On the liquidity front, the closing cash, including short-term investments, were QR891mn. The total debt at group level stood at QR4.7bn as on June 30, 2020.
A GIS spokesman said due to the recent uncertainty emanating from the unforeseen lowered operating backdrop, across the oil and gas industry, caused by the spread of the pandemic, the management has decided to "temporarily defer" all the proceedings of the proposed new debt restructuring and refinancing exercise to latter part of the year.
Similarly, the drilling segment showed a moderate recovery owing to rationalisation of operating costs, including general and administrative expenses.
However, topline performance of the drilling segment was largely impacted by the lower rig utilisation rates, due to travel restrictions imposed to contain the spread of Covid-19 pandemic which affected the crew repatriation process, which led to a reduction in revenues compared to last year.
The operating profits improved 41% year-on-year to QR193mn in the review period, mainly attributable to the improved revenue compared to last year.
Finance cost shrank 21% to QR98mn in H1, 20, on the back of the declining interest rates.
Despite the macroeconomic challenges due to the spread of Covid-19 and recent deterioration of oil market, GIS repositioned itself by focusing on high assets utilisation, combined with expanding market share and rationalising operating costs, to build solid foundations for revenue and profit growth, said Sheikh Khalid bin Khalifa al-Thani, GIS chairman.
“This strategy has particularly helped all the segments to contribute to the group’s performance, which translated into the group’s improved financial performance," he added.
The drilling segment witnessed slight recovery net losses of 3% in H1-20, due to savings on direct operating costs and lower finance costs. However, drilling revenues declined 11% to QR522mn.
The aviation segment reported 16% jump in revenues to QR340mn, which translated into net earnings of QR362mn. The segment continued to maintain its leading position in the domestic market with 100% market share, while operating internationally in Europe, Africa and Asia, with a total fleet of 55 helicopters.
Revenue within the insurance segment for the six months period ended 30 June 2020, increased significantly by 23%, as compared to the same period last year, to reach QR470mn.
The insurance segment’s net profit grew 7% to QR12mn and revenues by 23% to QR470mn.
The revenue growth was on the back of successful renewal of policies, along with improved pricing terms on all major accounts within the medical segment, which provided an assurance of continued revenue streams over the year. Moreover, the segment was further able to add new clients within its medical line of business.
The catering arm saw a net profit of QR5mn on revenues of QR227mn. The revenue saw 9% growth due to successful expansion of core industrial catering and manpower contracting services and higher occupancy levels at Mesaieed and Dukhan camps.
The group’s total assets stood at QR11bn. On the liquidity front, the closing cash, including short-term investments, were QR891mn. The total debt at group level stood at QR4.7bn as on June 30, 2020.
A GIS spokesman said due to the recent uncertainty emanating from the unforeseen lowered operating backdrop, across the oil and gas industry, caused by the spread of the pandemic, the management has decided to "temporarily defer" all the proceedings of the proposed new debt restructuring and refinancing exercise to latter part of the year.