Qatar-based marine transport and logistics conglomerate Qatar Navigation (Milaha) has seen its net profit drop by some 33 percent for the first quarter of the year ended March 31, 2017.
Namely, the company ended the quarter with a net profit of QAR 236 million (USD 64.8 million), significantly lower than QAR 352 million (USD 96.6 million) reported in the same period in 2016.
Milaha’s operating revenues also decreased to QAR 648 million for the first three months of the year, compared to QAR 767 million reached a year earlier, representing a decrease of 15 percent, while its operating profit dropped by 27 percent to QAR 185 million from QAR 256 million in the respective periods.
“We are continuing to face the same market challenges as in 2016, but we remain confident in our ability to drive growth and capitalize on new opportunities while exercising financial discipline,” H.E. Sheikh Ali bin Jassim Al Thani, Chairman of Milaha’s Board of Directors, said.
Additionally, Milaha Maritime & Logistics’ net profit declined by QAR 14 million, mainly as a result of continued rate pressure in the company’s container shipping unit, while Milaha Gas & Petrochem’s net profit plunged by QAR 46 million mainly driven by a global downturn in shipping rates that impacted all major sectors.
Similarly, Milaha Offshore reported a drop in its profit as well, which decreased by QAR 25 million, with QAR 22 million of that related to impairments.
“Given the difficult environment we are working in, we posted solid operational results. We will continue moving ahead with our multi-year growth strategy to build a stronger and more sustainable business,” Abdulrahman Essa Al-Mannai, Milaha’s President and CEO, said.