The Qatar-based maritime transport and logistics company saw revenues drop drastically across all sectors due to what it characterized as an “unusually prolonged global downturn” in the shipping market.
Qatar Navigation (Milaha) posted a 51 percent decrease in net profits for the first half of 2017, with company executives citing global downturns in the marine sector as a major culprit.
The company saw its net profits drop from 553 million Qatari riyal (U.S. $151.5 million) in the first half of 2016 to 267 million Qatari riyal in the first six months of 2017. Earnings per share (EPS) fell to 2.35 Qatari riyal, compared with 4.86 Qatari riyal per share during the same period a year prior.
“We are in the midst of an unusually prolonged global downturn across most marine sectors. However, we remain financially strong and will continue to invest prudently for the long term,” said H.E. Sheikh Ali bin Jassim Al Thani, chairman of Milaha’s Board of Directors.
Milaha Maritime & Logistics’ net profit declined by 46 million Qatari riyal, mainly due to continued pricing pressure in container shipping and lower profits from ports business, said the company. Milaha Trading’s net profit declined marginally (1 million Qatari riyal) due to lower sales volumes of marine fuels and lubricants, while Milaha Capital’s net profit slid 68 million Qatari riyal due to lower held-for-trading investment returns and an available for sale investment impairment from the first quarter of 2017, said the company.
In its gas and offshore sectors, Milaha saw its net profit fall 96 million Qatari riyal and 30 million Qatari riyal, respectively, due to depressed rates and vessel oversupply as well as lower profits from joint venture operations.
“We are actively taking steps to mitigate the impact of the current downturn, from both a cost as well as revenue perspective. In this regard, we see a number of short and medium term opportunities to position ourselves more strongly for when markets improve,” said Mr. Abdulrahman Essa Al-Mannai, Milaha’s President and CEO.
Milaha profits plummet 51% in first half 2017
