Marine transporter Qatar Navigation (Milaha) has reported a drop of 35 percent in its net profit for the full year ended December 31, 2016, driven by a challenging business environment.
The company’s profit plunged to QAR 711 million (USD 195.2 million) from a net profit of QAR 1.095 billion (USD 300.7 million) seen in 2015.
Milaha said that its 2016 operating revenue stood at QAR 2.5 billion, compared to QAR 2.9 billion reported in the previous year, while its operating profit was at QAR 555 million, down from QAR 855 million for the respective periods.
“2016 was a profitable year for Milaha despite the challenging business environment. Our strong balance sheet and formidable asset portfolio will allow us to continue executing our long-term growth strategy and expanding our presence in Qatar and beyond,” H.E. Sheikh Ali bin Jassim Al Thani, Chairman of Milaha’s Board of Directors, said.
Milaha Maritime & Logistics’ net profit reached QAR 144 million in 2016, against QAR 264 million seen in 2015. The number was affected by lower revenue from port services unit, which was driven by a drop in storage and general/bulk cargo revenue, and rate pressure in the container shipping unit, which still managed to grow its market share and volumes, according to Milaha.
The company’s Gas & Petrochem unit saw a net profit of QAR 415 million, compared to QAR 457 million reported for the previous year, mainly due to a slump in both tanker and gas carrier charter rates.
Milaha Offshore’s net loss for the full year stood at QAR 115 million, a turnaround from a net profit of QAR 93 million seen in 2015, with one time impairments amounting to QAR 161 million being the primary driver of the net loss for the year ended 2016.
“Despite the multiple macroeconomic and sector-specific challenges we faced in 2016, we achieved a net profit of QAR 711 million. Operationally, we had an even better year as we entered new markets, enhanced and increased our service offerings across several sectors, and added new assets to our portfolio,” Abdulrahman Essa Al-Mannai, President & CEO of Milaha, said.