Dubai-based shipping company Gulf Navigation Holding (GulfNav) ended the third quarter of this year with a profit of AED 12.4 million (USD 3.4 million), a decrease of almost 90 percent when compared to AED 116.8 million (USD 31.8 million) posted in the same quarter last year.
What is more, the company’s profit for the first nine months of this year dropped by 76 percent to AED 31.4 million from AED 131.2 million recorded in the same period last year.
Despite the year-on-year (YOY) decline in the profit, there has been some recovery in the company’s business performance on a quarterly basis.
During the third quarter of this year, the company’s net profit increased by 21 percent from AED 10.2 million seen in Q2 2017.
“Gulf Navigation continues to maintain its robust position despite regional economic challenges. Our financial results reflect the strong growth of the maritime sector, which is one of the most important future sectors with a significant role in the sustainable development of the future and post-oil economy of Dubai and the UAE,” Khamis Juma Buamim, Managing Director and Group CEO of the Gulf Navigation Holding Group, commented.
“We continue to focus on our strategic direction while monitoring and anticipating market variables,” Buamim added.
Earlier this year, the company said it plans to issue Islamic Sukuk, with a value of USD 250 million. Although the bond was expected to be issued by September, it will be issued by the end of the year, Reuters reported citing Buamim as saying.
In a separate statement, GulfNav announced a potential strategic cooperation with Ali & Sons Marine Engineering Factory in Abu Dhabi (ASMEF) with the intention to establish a joint venture company in rendering services in the oil & gas, offshore, shipbuilding/repairs and marine services.
Currently, GulfNav owns and operates a fleet of 12 chemical tankers and offshore vessels. The company expects to increase its fleet to 20 ships by Q2 2020.