Gulf International Services (GIS) – the holding entity of Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj – has reported revenues of QR705mn in the first quarter (Q1) of 2021.
During Q1-21, the oil and gas industry showed early signs of recovery, amid cautious global optimism arising from the vaccine rollout and ease of lockdown restrictions in major markets.
However, the pace of economic recovery depends on the pandemic's impact to filter through with subdued external demand for energy and the related services for the remainder of the year, before the wider spread of vaccine benefits spur greater global economic activity, GIS said.
Revenue growth from insurance segment was entirely offset by reduction in revenue from all the other segments, thus resulting in a 15% year-on-year drop in the overall revenues in Q1, 2021.
The topline performance was impacted by the external challenges affecting the group since the pandemic. The drilling segment remained under pressure with ongoing suspension of rigs, coupled with lower rig day-rates, which were implemented during mid of 2020.
Flying hours within the aviation segment witnessed a reduction compared to Q1, 2020, mainly due to actual recovery in oil and gas services being slower than expected, affecting the overall flight demand from clients.
In the catering segment, restrictions and lockdowns impacted revenues and financial performance. On the other hand, the insurance segment continued its positive trajectory, while building on premiums on the back of segment’s market expansion strategies and successful contract renewals coupled with favorable pricing terms.
The group reported an EBITDA (earnings before interest taxes depreciation and amortisation) of QR112mn in Q1, 2021, while it posted a net loss of QR5.5mn in Q1, 2021 against net profit of QR8.7mn the year-ago quarter.
Finance cost for Q1, 2021 decreased by 41% year-on-year to QR30mn, due to the drop in interest rates. Similarly, general and administrative expenses declined by 16% on account of continued optimisation drive.
The recovery in capital markets aided the performance of group’s investment portfolio, and a recovery of QR55mn was noted on account of unrealised gains on revaluation of investment securities, when comparing current period’s investment portfolio performance with Q1, 2020.
The group’s total assets stood at QR10.4bn. On the liquidity front, the closing cash, including short-term investments, stood at QR753mn. The total debt at the group level stood at QR4.4bn at the end of March 31, 2021.
The drilling segment reported revenue of QR198mn and a net loss of QR72mn for the three-month period ended March 31, 2021.
The aviation segment reported total revenue of QR165mn and net profit of QR50mn in Q1, 2021.
Revenue within the insurance segment increased by 11% to QR256mn and net profit more than doubled to QR15mn.
The catering segment reported revenue of QR86mn but net loss was QR0.5mn in January-March 2021.
However, the pace of economic recovery depends on the pandemic's impact to filter through with subdued external demand for energy and the related services for the remainder of the year, before the wider spread of vaccine benefits spur greater global economic activity, GIS said.
Revenue growth from insurance segment was entirely offset by reduction in revenue from all the other segments, thus resulting in a 15% year-on-year drop in the overall revenues in Q1, 2021.
The topline performance was impacted by the external challenges affecting the group since the pandemic. The drilling segment remained under pressure with ongoing suspension of rigs, coupled with lower rig day-rates, which were implemented during mid of 2020.
Flying hours within the aviation segment witnessed a reduction compared to Q1, 2020, mainly due to actual recovery in oil and gas services being slower than expected, affecting the overall flight demand from clients.
In the catering segment, restrictions and lockdowns impacted revenues and financial performance. On the other hand, the insurance segment continued its positive trajectory, while building on premiums on the back of segment’s market expansion strategies and successful contract renewals coupled with favorable pricing terms.
The group reported an EBITDA (earnings before interest taxes depreciation and amortisation) of QR112mn in Q1, 2021, while it posted a net loss of QR5.5mn in Q1, 2021 against net profit of QR8.7mn the year-ago quarter.
Finance cost for Q1, 2021 decreased by 41% year-on-year to QR30mn, due to the drop in interest rates. Similarly, general and administrative expenses declined by 16% on account of continued optimisation drive.
The recovery in capital markets aided the performance of group’s investment portfolio, and a recovery of QR55mn was noted on account of unrealised gains on revaluation of investment securities, when comparing current period’s investment portfolio performance with Q1, 2020.
The group’s total assets stood at QR10.4bn. On the liquidity front, the closing cash, including short-term investments, stood at QR753mn. The total debt at the group level stood at QR4.4bn at the end of March 31, 2021.
The drilling segment reported revenue of QR198mn and a net loss of QR72mn for the three-month period ended March 31, 2021.
The aviation segment reported total revenue of QR165mn and net profit of QR50mn in Q1, 2021.
Revenue within the insurance segment increased by 11% to QR256mn and net profit more than doubled to QR15mn.
The catering segment reported revenue of QR86mn but net loss was QR0.5mn in January-March 2021.