Dubai-listed shipping operator Gulf Navigation’s accumulated losses reached AED 671 million ($182.2 mln) in the second quarter of 2022, or 65.9% of capital ratio.

Reporting a loss of AED 4.273 million in Q2 2022, after a profit of AED 125 million in Q2 2021, the company cited several factors including the write-off of its vessel Gulf Livestock 1, which sank in September 2020.

Other factors mentioned include the impact of COVID-19 that resulted in lower revenue, high net finance costs and the impact of impairment of vessels on goodwill.

In statements to Dubai Financial Market (DFM), the company reported a loss of AED 2.452 million for the first half of 2022, compared with an AED 79.59 million profit in H1 2021.

Operating revenue for Q2 2022 was AED 37.28 million, up from AED 31.24 million year-on-year and AED 72.34 million in H1 2022, down from AED 62.47 YoY.

A statement from managing director Ahmad Kilani said the company was stabilising vessels’ performance by taking necessary measures to overcome COVID-19 challenges and had refinanced vessels at a lower rate.

In a separate statement chief financial officer Ali Abouda said the five petrochemical vessels were refinanced by Chinese company Jiangsu Financial Leasing Co on a five-year term.

The group expected to receive AED 226.92 million in funds from the refinancing of vessels, its Q2 2022 financial reports showed today, and also revealed current liabilities exceed its assets by AED 280.7 million.

The company wrote off the carrying value of the Gulf Livestock 1  which sank in September 2020, at AED 197.5 million, and received AED 82.35 million in a resulting insurance claim.

Last week, website Argaam reported that Tabarak International Investment reduced its share in the company from 7.46%, to an unspecified level. A spokesman for Gulf Navigation said Tabarak is the major shareholder of the shipping company.

(Writing by Imogen Lillywhite; editing by Seban Scaria)