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Milaha’s net profit for first nine months dips 20% period-on-period to $208m

Milaha’s net profit for first nine months dips 20% period-on-period to $208m
Qatar Navigation’s (Milaha) gas and petroleum arm was the only positive performer as the Doha  company’s net profit for the nine months to September 30 slumped QR 200m ($55m), or 20%, compared to the corresponding period last year.

Milaha Gas & Petrochem’s revenue grew by 24% as a result of the full period impact of the investment in two LNG carriers made in the second half of 2015. However, Milaha’s operating revenues of QR 1.99bn to September 30 were down from QR 2.30bn year-on-year as revenue across its four other departments fell - Maritime & Logistics’ by 13%, Offshore by 17%, Trading by 26% and Milaha Capital by 21%.

It’s Q3 net profit was QR 759m ($208.4m), down from QR 959m for the corresponding period.

“Shipping is experiencing some of the most difficult conditions we have seen since the financial crisis,” Milaha president and ceo Abdulrahman Essa Al-Mannai conceded before accentuating the company’s profit margin positive.

“Despite these difficulties and the drop in earnings relative to the same period last year, Milaha’s net profit margin remains a healthy 38%.”

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Low oil prices and the resulting cuts in investments by oil and gas majors continued to “weigh down” on Milaha Offshore’s performance.

Milaha Maritime & Logistics’ port services unit continued to be negatively impacted by lower revenues from ancillary services, non-containerised general cargo, and RORO.

“In addition, despite growing market share and volumes, the Container Shipping unit was negatively impacted by rate pressure.”

The 26% dip in Milaha Trading’s revenue was driven by lower heavy equipment sales while lower dividend income from the first quarter continues to hamper Milaha Capital’s results.

Milaha chairman, H.E. Sheikh Ali bin Jassim Al Thani, remained upbeat despite the downturn.

 “Due to the weaker macroeconomic conditions and volatility in our core sectors, we continue to operate in a challenging environment. In the face of these difficult times, however, Milaha remains focused on investing for the future and pursuing the best growth opportunities domestically and internationally,”

Established in July 1957 as the first public shareholding company registered in Qatar, Milaha’s current activities include marine transportation in gas, petroleum products, containers and bulk; offshore support services; port management and operations; logistics services; shipyard; trading agencies; real estate investments; and asset management.