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Nakilat reports 2.9% fall in profits

Nakilat reports 2.9% fall in profits
Qatari marine company Nakilat has announced net profits QAR955m ($262.3m) for 2016, compared to QAR984m in 2015 – a fall of 2.9%. 

Addressing the fall in profits, it cited a decline in oil and gas prices and overcapacity in the shipping industry has placed a downward pressure on the shipping markets and asset price.

The company is one of the world’s most prominent shippers of liquefied natural gas.

The company’s board recommended distributing a cash dividend of QAR1 per share, down from QAR1.25 in 2015.

In a statement, its directors commended the “resilient” financial results despite challenging market conditions, “which clearly reflects the strength and stability of the company’s commercial position.”

It continued: “Given the downturn in market conditions, the company is pursuing a prudent and balanced strategy of strengthening its balance sheet, capitalising on profitable business growth, and achieving cost consolidations.”

“Nakilat’s approach to its dividend disbursement would enable the company to continue to maintain a strong balance sheet and stable cash flow to support its debt repayment structure and remain resilient in the current volatile market environment.

“This would allow the company to maintain its leading market position in the transportation of liquefied natural gas and capitalise on future opportunities that may arise.”