Qatari LNG transport company Nakilat closed the first nine months of this year with a profit rise of 10.5 percent year-over-year (YOY).
The company’s net profit increased to QAR 728 million (USD 199.95 million) in the first three quarters of 2019 from QAR 659 million (USD 180.99 million) seen in the corresponding period a year earlier.
Total revenues increased by 0.3 percent to QAR 2.73 billion in the three quarters ended September 30, 2019.
As explained, Nakilat’s positive financial results can be primarily attributed to improved operational performance in managing its LNG and LPG vessels as well as towage joint venture.
Specifically, higher revenues were posted thanks to additional income from the acquisition of two additional LNG carriers and one FSRU in 2018, as well as higher LPG shipping rates worldwide.
Furthermore, Nakilat managed to reduce operational expenses through continuous rationalization activities, process enhancements, and cost optimization initiatives, leading to a significant increase in the share price of the company during this period.
“Nakilat’s strong financial performance bears testament to the company’s ongoing emphasis and continuous improvements to remain competitive within the global energy transportation market, sustaining healthy cashflow and generating steady returns for our shareholders,” Abdullah Fadhalah Al Sulaiti, Nakilat’s CEO, commented.
“With the support of Qatar Petroleum and its affiliates, the encouraging volume of projects at the Erhama Bin Jaber Al Jalahma Shipyard and more recently, the successful delivery of the Bul Hanine fabrication project for Qatar Petroleum…, we are highly driven to enhance synergy across the entire organization in order to improve efficiency and increase productivity … across all our integrated shipping and maritime operations.”
In the coming years, Nakilat expects to take on greater ship management responsibilities following the second phase of the LNG fleet management transition from Shell and management transition an FSRU, as well as the addition of four LNG carriers to its fleet.
The company said it would continue to look for new business opportunities in 2019-20 to exploit “the healthy LNG shipping market fundamentals”.
Nakilat’s fleet is currently comprised of 69 LNG and four LPG carriers, as well as one FSRU.