Marine transport and logistics conglomerate Qatar Navigation (Milaha) saw its profit drop by 33.9% year-on-year, pressured by significant challenges in shipping sectors.
For the twelve-month period ended December 31, 2017, Milaha’s net profit stood at QAR 470 million (USD 129.1 million), down from net profit of QAR 711 million (USD 195.3 million) seen in the previous year.
Milaha’s operating revenues were down by 2% to QAR 2.491 billion for 2017, from QAR 2.551 billion reported for the same period in 2016.
Operating profit was also down for the year, dropping by 19% to QAR 448 million, compared to QAR 555 million from a year earlier.
“We finished 2017 with strong momentum to carry us into 2018 and beyond. This reflects the success of the new shipping routes and supply chain solutions we launched throughout the year. Additionally, we continued to improve the cost structure of our businesses, expand our value proposition, and we remain on track to deliver sustained short and long-term growth,” Abdulrahman Essa Al-Mannai, Milaha’s President and CEO, said.
The company’s Maritime & Logistics’ net profit declined by QAR 23 million in 2017 compared to 2016, mainly due to QAR 33 million in vessel impairments in its container shipping unit, as Gas & Petrochem’s net profit plunged by QAR 269 million in comparison to 2016 on the back of significant challenges in shipping sectors in which Milaha operates.
Milaha Offshore’s bottom line declined by QAR 71 million in 2017 driven by the significant drop in oil prices which negatively impacted the exploration and production value chain, including offshore vessels and related services.
“Despite the unexpected events and ongoing industry-wide challenges during the year, Milaha remained profitable in 2017 driven by a stronger operating performance in the third quarter onwards, which we believe, sets the stage for a successful 2018. Going forward, we will continue to focus on driving growth and executing on our strategic priorities,” said Ali bin Jassim Al Thani, Chairman of Milaha’s Board of Directors.