Gulf International Services' (GIS) subsidiaries such as Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj will continue efforts not only in maintaining their market share but also looking at to improving asset utilisation.
This multipronged approach is aimed at building a resilient future to create long term shareholder value, according to GIS chairman Sheikh Khalid bin Khalifa al-Thani.
"In addition, relentless efforts are being placed to achieve an efficient and effective debt structure for the group, which is a key ingredient of our corporate strategy," he told shareholders at the annual general assembly, which approved the 2021 financial results and the dividend.
These plans are currently under progress and would bring additional layer of financial sustainability to the group, with opportunities to expand our footprints, and consequently improve the competitive positioning, he said.
GIS will continue to emphasise on achieving cost efficiency across all its segments and will continue to implement new measures, which could further transform operations, via creating an additional layer of defence to an already lean organisation, Sheikh Khalid said.
Post-pandemic recovery for the group remained "uneven", with aviation and insurance segments continuing to demonstrate persistent improved set of results, while the drilling segment remained under pressure until first half of the year, he said.
However, with the latest strategic realisations, the drilling segment has started to show signs of recovery. During 2021, Gulfdrill JV, which was previously awarded to supply five jack-up rigs linked to Qatar’s North Field expansion (NFE), became fully operational with deployment of the remaining three rigs during first half of 2021.
"Going forward, with Gulfdrill JV becoming fully operational, it is expected to bring additional revenue streams for the segment, along with improved operational cash flows to the group, he said.
The business strategy for aviation services segment has been mainly built on expanding markets domestically and growing international footprints with a focus on Middle East and North Africa and Africa.
The strategy also targets growing Gulf Helicopter's fleet to meet anticipated growth; while also upgrading the existing fleet to retain customer base with most advanced aircrafts; and growing maintenance, repairs and overhaul activities.
Key strategies for the insurance segment mainly revolves around both the medical and energy line of business via building upon premiums by reaching out to newer clients, locally and internationally including small and medium enterprises or SMEs, within or outside oil and gas sector, benefiting from national projects, such as the NFE and potential implementation of new regulations linked to insurance sector.
The growth will also be supported by pricing management with consideration of increased risk retention, wherever economically viable, and renewal of contracts with existing clients, GIS board said.
Other key strategies include improved effective implementation of claims management policies and procedures; and diversification of the investment portfolio; coupled with strategic re-allocation of investable assets to support overall profitability within the segment and to ensure strong liquidity position.
The business strategy for catering segment has primarily been circled around enhancing client retention; improving the tender success ratio; and raising the market share of manpower and facility management services and maximising occupancy level in the camps.
Other key elements of the strategy include continuous cost optimisation and diversification to non-oil and gas sectors like healthcare, transport sector, while also targeting SME clients.
"Currently various scenarios and options are being considered and evaluated that would allow management, as well as all the other stakeholders, to apprehend better certainty with a stable view of the market in relation to group’s debt profile and repayment ability," said Mohamed Jaber al-Sulaiti, Manager Privatised Companies Affairs Department, QatarEnergy.
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