Milaha profits down 52% year-to-date

Qatar Navigation (Milaha) recorded a net profit of QR 363 million (U.S. $96 million) on operating revenues of QR 1.66 billion for the nine months ending September 2017, a significant reduction compared to the same period in 2016.    Qatar Navigation (Milaha) posted a year-to-date net profit of QR 363 million (U.S. $96 million), a 52 percent reduction from the QR 759 million earned for the same period in 2016, according to the company’s most recent financial statements.
   The Qatar-based maritime transport company reported operating revenues of QR 1.66 billion year-to-date, also down from the QR 1.99 billion in the first nine months of 2016. Earnings per share came to QR 3.19 per share for the nine months ending in September 2017, compared to QR 6.68 for the same period in 2016, said Milaha.
   The company experienced declining revenues in all business segments, with Milaha Maritime & Logistics’ net profit down QR 13 million year-to-date compared to last year. However, net profit increased in the third quarter of 2017 to QR 70 million, compared to the second quarter profits of QR 5 million. Milaha attributed this increase to volume increases in container shipping and port services. 
   Milaha Gas & Petrochem’s net profit declined by QR 138 million, mainly due to vessel oversupply and depressed rates, in addition to lower profits from its joint venture operations, the company stated. Additionally, Milaha Offshore’s net profit declined by QR 126 million due to continued global vessel oversupply and lower demand, it said. Finally, Milaha Trading’s net profit declined by QR 5 million due to lower sales volumes of marine fuels and lubricants.
   “The weakness in the shipping and offshore marine sectors continued to negatively impact our results, however, I’m pleased to say that net profit improved significantly quarter-on-quarter from Q2 and Q3. We believe we have good momentum going into Q4,” said H.E. Sheikh Ali bin Jassim Al Thani, chairman of Milaha’s board of directors.
   “We are naturally taking concrete steps to manage our costs. However, we also feel encouraged to see a number of new growth opportunities in the short and medium across our portfolio of services, which will allow us to strengthen our market position,” added Abdulrahman Essa Al-Mannai, Milaha’s president and CEO.