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Gulf Navigation continues path to recovery with much improved annual profits

Gulf Navigation continues path to recovery with much improved annual profits
Dubai-based shipping firm Gulf Navigation has announced profits of AED 136.57m ($37.31m) for 2016 – a notable increase on the previous 12 months. 

In 2015, the company posted profits of AED 20.17mn\.

In a statement, the company said it had benefitted from ‘strong and consistent financial turnaround and transformation’.

It continued: “The renewed drive towards innovation continued in Q4-2016 as the company entered into more global partnerships to strengthen its competitive position in all areas of its business.

“It has also witnessed intensified efforts to finalise settlement with remaining counter-parties and close out legacy issues.”

Khamis Juma Buamim, managing director and group ceo, said the results were testament to the efforts to “transform” the business into one of the sector’s most innovative shipping firms.

“Further improvement in chemical tanker spot rates specifically contributed to increased margins along with further rationalisation of our cost structure which led to lower finance and overhead costs. 

“We have also achieved giant strides in resolving a number of legacy issues which we expect to be fully resolved in the coming period.”

As of 31 December 2016, the Company’s capital share capital amounted to AED 551.7m, distributed as 551.7m shares at AED 1 each.

Former Drydocks World and Maritime World chairman, Buamim, took over Gulf Navigation in April 2016, pledging to restructure and expand the business of the listed-tanker owner.

The 2016 results suggest Buamim is making good on his promise to turn around the business which had its future called into “significant doubt” in 2015.