Operating revenues touched QR 1.1 billion, down 21% compared to QR 1.4 bn in the same period in 2016. EPS was QR 2.35 for H1, 2017, compared to QR 4.86 for the same period in 2016.
“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 Milaha chairman Sheikh Ali bin Jassim Al Thani.
Milaha president and CEO Abdulrahman Essa Al Mannai stated: “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 when markets improve.”
Milaha Maritime & Logistics’ net profits fell by QR 46 mn, mainly due to continued pricing pressure in container shipping and lower profits from its ports business. Milaha Gas & Petrochem’s net profit declined by QR 96 mn driven by depressed rates and vessel oversupply that impacted most of the tanker and gas carrier sectors the company operates in, in addition to lower profits from its joint venture operations.
Milaha Offshore’s net profits fell by QR 30 mn (excluding one-time impairments of QR 45 mn), driven mainly by global vessel oversupply which in turn has continued to depress charter rates and utilisation.
Milaha Trading’s net profits declined by QR 1mn due to lower sales volumes of marine fuels and lubricants. Milaha Capital’s net profits declined by QR 68 mn due to lower held for trading investment returns and an available for sale investment impairment from the first quarter of 2017.