Revenue of QR 2.3 billion for the nine months ended 30 September, 2016
Total Assets of QR 11.6 billion, up by 3% on 31 December, 2015
Continuous cost and operation optimization measures across the group
DOHA, QATAR - Gulf International Services (“GIS” or “the group”; QE: GISS), the largest services group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services, announced its financial results for the nine months period ended September 30, 2016 with a revenue of QR 2.3 billion and net profit of QR 189 million.
Financial Results
Revenue
Group revenue for the nine months ended September 30, 2016 was QR 2.3 billion (compared to QR 3.3 billion for the same period of 2015). This reduction was driven by the downward rates-revision and reduced level of activities across all segments of the group due to the challenging market conditions faced by the group companies.
Revenue in the drilling segment was significantly impacted by the lower daily rates and utilization of rigs following the drilling price plunge, which have adversely affected most of GDI contracts. Aviation segment revenue was also down on 2015 due to lower flying hours, downward rate revisions and reduced operations across the region.
Catering and Insurance segment’s revenue were moderately affected due to demobilization of contracts and lower rates on new contracts.
Nonetheless, the group is continuously working on improving its revenue through a number of initiatives including exploring new opportunities in and outside of Qatar.
Net Profit
Group net profit for the nine months ended September 30, 2016 closed at QR 189 million (compared to QR 822 million for the same period of 2015) representing a decrease of QR 633 million on last year. Earnings per share was QR 1.02 for the period ended September 30, 2016, compared to QR 4.42 for the same period of 2015. This year-on-year decrease was primarily due to the reduced revenue despite a notable improvement in the operating costs.
Performance Improvement Efforts
The group is actively engaged in a series of initiatives to decrease its operating cost across the group companies. These initiatives include further rationalization the costs together with optimizing the utilization of operating assets, and the supply chain. The group companies are actively seeking for new avenues of cost optimization as it is a critical priority for the group given the current economic environment.
-Ends-
For more information about this press release, email gis@qp.com.qa or visit www.gis.com.qa
Disclaimer
The companies in which Gulf International Services QSC directly and indirectly owns investments are separate entities. In this press release, “GIS” and “the group” are sometimes used for convenience in reference to Gulf International Services QSC.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gulf International Services QSC. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements.
There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group’s services, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. All forward-looking statements contained in this report are made as of the date of this presentation.
Gulf International Services QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Gulf International Services QSC, its subsidiaries, and associated company are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Gulf International Services QSC does not guarantee the accuracy of the historical statements contained herein.
General Notes
Gulf International Services QSC’s accounting year follows the calendar year. No adjustment has been made for leap years. Where applicable, all values refer to Gulf International Services QSC’s share. Values expressed in QR billions and percentages have been rounded to 1 decimal point. All other values have been rounded to the nearest whole number. Values expressed in US $’s have been translated at the rate of US $1 = QR3.64.
Definitions
Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100 • Dividend Yield: Cash Dividend / Market Capitalisation x 100 • EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation calculated as [Net Profit + Interest Expense + Depreciation + Amortisation] • Energy (Insurance): Refers to the Energy, Plant and Construction, Marine, Fire and Other lines of business • EPS: Earnings per Share [Net Profit / Number of Ordinary Shares outstanding at the year end] • Free Cash Flow: Cash Flow From Operations - Total CAPEX • IBNR: Incurred But Not Reported (Refers to claims incurred but not yet reported at the statement of financial position date) • Interest Cover: (Earnings before Interest Expense + Tax) / Interest Expense • Net Debt: Current Debt + Long-Term Debt - Cash & Bank Balances • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings multiple [Closing market capitalisation / Net Profit] • ROA: Return On Assets [EBITDA/ Total Assets x 100] • ROCE: Return On Capital Employed [Net Profit before Interest & Tax / (Total Assets - Current Liabilities) x 100] • ROE: Return On Equity [Net Profit / Shareholders’ Equity x 100] • Utilisation (Rigs): Number of days under contract / (Number of days available - Days under maintenance) x 100
About GIS
Gulf International Services QSC was incorporated as a Qatari joint stock company on February 12, 2008 by Resolution Number 42 of 2008 of the State of Qatar’s Ministry of Economy and Commerce, pursuant to its Memorandum and Articles of Association and Law Number 5 of 2002 concerning Commercial Companies. The authorised share capital is QR 2 billion with the issued share capital consisting of 148.7 million ordinary shares and 1 special share.
Through the group companies, Gulf International Services QSC operates in four distinct segments - insurance and reinsurance, drilling, helicopter transportation and catering services.
Qatar Petroleum, the largest shareholder, provides all of the head office functions for Gulf International Services QSC through a comprehensive service directive. The operations of the subsidiaries remain independently managed by their respective Boards of Directors and senior management teams.
© Press Release 2016
