DOHA, QATAR - Gulf International Services ("GIS" or "the group"; QE: GISS), the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services has signed a Share Purchase Agreement ("SPA") with Japan Drilling Co. Ltd. ("JDC") to acquire all of JDC's 30% shareholding in Gulf Drilling International Ltd. Q.S.C. ("GDI"). Pursuant to the terms of the SPA, GIS shall own all of JDC's shares in GDI starting 1 May 2014, making GDI a wholly owned subsidiary of GIS.
The SPA was signed by H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman and Managing Director of the Board of GIS, Mr. Saad Sherida AL-Kaabi, Director of Oil & Gas Venture of QP and GDI Chairman of the BOD and Mr. Yuichiro Ichikawa, President of JDC.
On this occasion, H.E. Dr. Mohamed Bin Saleh Al-Sada stated, "This was an opportune time for GIS to increase its stake in GDI. GDI is now established as a world-class onshore and offshore drilling contractor."
GDI has been growing rapidly in recent years after it embarked on the most intensive capital investment plan in its history. Upon receiving the full share from Japan Drilling Company, GDI will become a fully owned subsidiary of GIS. In turn, GIS will enjoy substantially higher earnings from GDI."
Mr. Yuichiro Ichikawa stated that one of the primary objectives of the joint venture was to transfer drilling rig technology and the capabilities of operating drilling rigs safely and efficiently from JDC to a Qatari company on a structured and sustainable basis. We are proud of GDI's achievements over the past ten years and the self-sufficiency that it has achieved across all aspects of the business.
GDI and JDC also signed a Letter of Intent that provides for the exchange of further technical cooperation between the two companies and the promotion of mutually beneficial business opportunities. The Letter of Intent was signed by GDI's CEO, Mr. Ibrahim J. Al-Othman and Mr. Ichikawa. Mr. Al-Othman expressed his appreciation for the fine support that JDC had extended to GDI and said GDI was pleased to be able to continue its association with JDC its former partner.
The GIS Chief Coordinator, Mr. Ebrahim Al Mannai, stated that the fundamentals of the GIS investment to increase its stake in GDI were favorable. It should also be noted that this transaction will be 100% financed through an unsecured bilateral loan from local banks, obtained at competitive terms and conditions.
Mr. Ebrahim Al Mannai also stated that GIS' shareholders will benefit from the substantial contributions that GDI will be making going forward to GIS' financial performance. GDI has entered into a new stage and exciting phase of its journey, backed by world-class technical capabilities, impeccable HSSE track record and long-terms contracts for its assets, and GIS is very pleased to have increased its stake in this growing company.
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For more information about this press release, email gis@qp.com.qa or visit www.gis.com.qa
About GDI
Gulf Drilling International QSC was incorporated in 2004 as a joint venture between Qatar Petroleum (60%) and Japan Drilling Company (40%). Subsequent to exercising a share option provision within the joint venture agreement, QP increased its stake to 69.99% and then transferred this shareholding to GIS. GDI has no subsidiaries or associates, and is not party to any subordinate joint venture arrangements. The company's authorised and issued share capital is QR 739.7 million.
The registered new head office is located at Palm Tower B, West-Bay, 9th Floor, P.O. Box 9072, Doha, State of Qatar. Total headcount is 1,395, split between head office, onshore and offshore staff.
Disclaimer
The companies in which Gulf International Services QSC directly and indirectly owns investments are separate entities. In this document, "GIS" and "the group" are sometimes used for convenience in reference to Gulf International Services QSC.
This document may contain 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 press release are made as of the date of this press release, as marked on the Cover page.
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, joint venture 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
CAGR: 5-Year Compound Annual Growth Rate (from 2010 actuals) • Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to Equity: (Current Debt + Long-Term Debt) / Equity 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 • 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
© Press Release 2014
