MANAMA: Gulf Hotels Group (GHG) has reported net loss of BD3.446 million for the fourth quarter (Q4) of 2020 as against a profit of BD1.733m in Q4 of the previous year, with a decrease of BD5.180m.
Loss per share is 15 fils compared with earnings of 7 fils in Q4-2019.
Total comprehensive loss of BD2.940m in Q4-2020, when compared with a profit of BD1.764m in Q4-2019 is a decrease of BD4.704m.
Gross profit of BD2.058m, compared with BD4.873m for the same period earlier, is a decrease of BD2.815m or 57.75pc.
Revenue of BD4.938m in Q4-2020 when compared with BD10.455m for Q4-2019 is a decrease of BD5.517m or 52.77pc.
The decrease in net profit for the fourth quarter in comparison to the same period of 2019 resulted mainly from decreases in revenue due to various restrictions introduced to combat the spread of Covid-19 that have had an impact on the hospitality industry in general and have limited the normal operation of the group’s hotels, restaurants, catering and ancillary services, besides the significant decrease in room rates locally and regionally.
Additionally, the group has impaired BD2.749m from its property portfolio in Bahrain and Dubai.
Doubtful debts provision increased by BD189,000.
The decrease in net operating profit is also impacted by the drop in profit from associates by BD245,000 and management fees reduction of BD35,000.
These shortfalls were offset by government support of BD265,000.
For the year to date (YTD) – the twelve months ended December 2020 – the company achieved net loss of BD8.127m compared with profit of BD5.950m in the same period of the previous year, with a decrease of BD14.079m.
Loss per share is 36 fils compared with earnings of 26 fils in the previous year.
Total comprehensive loss of BD8.381m, compared with BD8.07m for the same period in the previous year, is a decrease of BD16.452m.
The total equity (excluding minority interests) for the year was BD100.622m compared with BD114.979m in the previous year, with a decrease of BD14.357m or 12.48pc.
Total assets for the YTD reached BD118.780m compared with BD136.727m in the previous year, with a decrease of BD17.946m or 13.13pc.
Gross profit of BD7.430m, compared with BD17.191m for the same period in last year, is a decrease of BD9.76m or 56.78pc.
Revenue of BD19.736m, compared with BD38.57m for the same period in the previous year, is a decrease of BD18.834m or 48.83pc.
The decrease in net profit for the year compared with the previous year can also be attributed to measures taken to combat the spread of Covid-19.
In addition, the company has recorded impairment for properties of BD5.065m, also doubtful debts provisions on trade receivables of BD608,000; losses from associates against previous year increased by BD954,000.
Earned dividends reduced compared with last year by BD185,000 and, management fees reduced by BD385,000.
These decreases were partially offset by government assistance of BD923,000.
GHG chairman Farouk Almoayyed expressed gratitude for the generous government support programme.
“Regardless of the impact on the company’s financial performance, the group’s priority remains to support the government’s fight against Covid-19 and the health and safety of our customers and staff.
“Whilst the impact of the pandemic on the company’s result has been significant, the efforts of the board and the management in reducing costs has ensured a positive result before depreciation and impairment.”
Adding to the chairman’s comments, chief executive Garfield Jones said, “Whilst the concentration of the management team has been on efforts to reduce costs, we have also been working on the development of the new transit hotel within Bahrain International Airport. The new hotel, consisting of 84 rooms and sleeping pods, will fully open in February 2021.
He added, “In addition to a spa, salon and passenger massage area, the hotel will offer luxurious family-sized rooms, state-of-the-art compact rooms and 24 sleeping pods.”
Mr Jones further said with the reopening of restaurants in October 2020, the Gulf Hotel was finally able to open the new outdoor, rooftop terrace of ‘Fusions by Tala’ which was completed back in March but was unable to open due to restrictions. The new terrace is overseen by Bahraini chef Tala Bashmi.
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