Qatar Navigation (Milaha) Q.P.S.C. today announced its financial results for the year ended December 31, 2016. The company declared a net profit of QAR 711 million for 2016 on revenues of QAR 2.55 billion.

Key financial highlights:

• Operating revenue for the year ended December 31, 2016 was QAR 2.551 billion, compared to QAR 2.984 billion reported the previous year.
• Operating profit for the year ended December 31, 2016 was QAR 555 million, compared to QAR 855 million reported the previous year.
• Net profit for the year ended December 31, 2016 was QAR 711 million, compared to QAR 1.095 billion reported the previous year.
• Earnings per share for the year ended December 31, 2016 was QAR 6.26, compared to QAR 9.63 reported the previous year.

The Board of Directors decided to recommend to the General Assembly to distribute a 35% cash dividend, equivalent to QAR 3.5 per share.

Milaha Maritime & Logistics’ net profit was QAR 144 million for the year ended 2016 compared to QAR 264 million reported the previous year, mainly as a result of lower revenue from our Port Services unit, which was affected by a drop in storage and general/bulk cargo revenue, and rate pressure in our Container Shipping unit, which still managed to grow its market share and volumes.

Milaha Gas & Petrochem’s net profit was QAR 415 million for the year ended 2016 compared to QAR 457 million reported the previous year, mainly due to a slump in both tanker and gas carrier charter rates. The decline was partially offset by the full year impact of increasing our ownership in two LNG carriers – Milaha Ras Laffan & Milaha Qatar – from 40% to 100% in 2015.

Milaha Offshore recorded a net loss of QAR 115 million for the year ended 2016 compared to a net profit of QAR 93 million for the year ended 2015, with one time impairments amounting to QAR 161 million being the primary driver of the net loss for the year ended 2016. Operationally, reduced exploration and production spending by both international and national oil companies contributed to a historically-depressed market environment.

Milaha Capital’s net profit for the year ended 2016 inched up 1% higher than the profit reported for year ended 2015, with both its Financial Investments as well as its Real Estate arms holding steady in a volatile year.

Milaha Trading’s net profit was QAR 8 million for the year ended 2016 compared to QAR 24 million reported the previous year as a result of a significantly weaker market for commercial trucks and heavy equipment, which in turn was due to a slowdown in new construction projects in Qatar during 2016.

“2016 was a profitable year for Milaha despite the challenging business environment. Our strong balance sheet and formidable asset portfolio will allow us to continue executing our long-term growth strategy and expanding our presence in Qatar and beyond,” said H.E. Sheikh Ali bin Jassim Al Thani, Chairman of Milaha’s Board of Directors.

For his part, Milaha’s President and CEO said: “Despite the multiple macroeconomic and sector-specific challenges we faced in 2016, we achieved a net profit of QAR 711 million. Operationally, we had an even better year as we entered new markets, enhanced and increased our service offerings across several sectors, and added new assets to our portfolio.”

The company will conduct an investor conference call on Thursday, March 2nd, 2017 at 3 pm Doha time, to further discuss its results. The conference call may be accessed by telephone by dialing +44 (0) 1452 555566 (UK and International) and entering the Conference ID: 76482345. Further information can be found on our website www.milaha.com.