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Revenue dips and profit rises at NakilatRevenue dips and profit rises at Nakilat

Lower finance costs and depreciation outweighed a drop in LPG carrier revenues at Nakilat to bring a 7.2% increase in third quarter profits.

Gary Howard, Middle East correspondent

October 21, 2024

2 Min Read
Image: Nakilat

Qatar Gas Transport Company (Nakilat) announced a third quarter profit of QAR1.28bn ($351m), a 7.2% increase compared to 2023, despite a drop in operational revenue and increase in operational costs.

Total income of QAR3.44bn was down by 1% on-year. Lower

revenue from its shipyard and LPG vessel joint ventures were partially offset by stronger earnings from its wholly-owned vessels and LNG joint ventures, Nakilat said.

The company was kept in the black for the quarter thanks to a drop of around 13.5% in general expenses to QAR64m, an almost 9% drop in amortisation and depreciation to QAR621m, and a 7.2% drop in finance charges to QAR865m. The drop in finance charges comes as the company has increased borrowings by around 10% to QAR19.4bn as its newbuilding programme expands.

LNG carrier rates have come down from their peak in late 2022 and early 2023, settling at more stable daily rates averaging around $78,000 for MEGI/XDF, $62,000 for 160,000 cu m DFDE and $39,000 for 145,000 cu m steam turbine vessels in the first nine month of 2024, according to Clarksons data.

Nakilat has 27 LNG carriers, nine QC-Max carriers and four LPG/ammonia carriers on order for delivery from 2026, a programme which will expand its fleet to 114 vessels including 105 LNG carriers and eight LPG/ammonia carriers.

Related:Repurposing LNG terminals for future fuels climbs agenda

The company cited Woodmac projections for global liquefaction capacity, forecasting an increase from 408 mmtpa in 2023 to 672 mmtpa in 2030, an expansion which would underpin demand for Nakilat’s LNG transportation services.

Eng. Abdullah Al-Sulaiti, CEO of Nakilat, said: “Nakilat’s strong performance this quarter reflects our ongoing efforts to enhance operational efficiency. As the global demand for clean energy transportation continues to grow, we remain committed to driving innovation and pursuing long-term growth.

“I would like to extend my appreciation to the team at Nakilat for their tremendous efforts in preparing for the implementation of the new fleet construction, which is considered the world's largest program for building LNG vessels for a single owner."

About the Author

Gary Howard

Middle East correspondent

Gary Howard is the Middle East Correspondent for Seatrade Maritime News and has written for Seatrade Cruise, Seatrade Maritime Review and was News Editor at Lloyd’s List. Gary’s maritime career started after catching the shipping bug during a research assignment for the offshore industry. Working out of Seatrade's head office in the UK, he also produces and contributes to conference programmes for Seatrade events including CMA Shipping, Seatrade Maritime Logistics Middle East and Marintec. 

Gary’s favourite topics within the maritime industry are decarbonisation and wind-assisted propulsion; he particularly enjoys reporting from industry events.

Conferences & Webinars

Gary Howard regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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