Marine transporter Qatar Navigation (Milaha) recorded a 51.7 percent decrease in its net profit for the first half of this year, impacted by a global downturn in the maritime industry.
Milaha’s net profit dropped to QAR 267 million (around USD 72.8 million) in 1H 2017 from QAR 553 million (USD 150.7 million) seen in the same period a year earlier.
Operating profit stood at QAR 170 million in the six months ended June 30, 2017, compared to QAR 378 million posted in 1H 2016.
During the six-month period, Milaha’s operating revenues also decreased to QAR 1.1 billion from QAR 1.4 billion recorded in the first half of 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,” Sheikh Ali bin Jassim Al Thani, Chairman of Milaha’s Board of Directors, said.
“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,” Abdulrahman Essa Al-Mannai, Milaha’s President and CEO, pointed out.
Milaha Maritime & Logistics’ net profit declined by QAR 46 million, mainly due to continued pricing pressure in container shipping, and lower profits from the company’s ports business.
What is more, Milaha Gas & Petrochem’s net profit dropped by QAR 96 million, driven by depressed rates and vessel oversupply that have impacted most of the tanker and gas carrier sectors the company operates in, in addition to lower profits from the joint venture operations.
Milaha Offshore’s net profit declined by QAR 30 million, affected by global vessel oversupply which in turn has continued to depress charter rates and utilization.
Milaha Trading’s net profit declined marginally by QAR 1 million due to lower sales volumes of marine fuels and lubricants.
Additionally, Milaha Capital’s net profit declined by QAR 68 million due to lower held for trading investment returns and an available for sale investment impairment from the first quarter of 2017.