Gulf Navigation Holding achieves a 7% increase on its Gross Profit

15/02/2018 08:06 AST

"Gulf Navigation Holding PJSC" announced its financial results for 2017 achieving 7% increase compared to 2016 with a gross profit of AED 49 million. This achievement comes as a result of the company's vision and efficient strategic plans set to position Gulf Navigation as one of the largest integrated marine services provider in the region.

This announcement declares "Gulf Navigation Holding PJSC" gross profit for 2017 that reached AED 49 million with an increase of 7% compared to 2016 that concluded with a gross profit of AED 45.8 million. During 2016, the company has successfully managed to pay and reschedule all its financial debts and to solve legal issues through financial allocations, which positively reflected on the company's net profit in 2016 of AED 136,573 million compared to AED 40.7 achieved in 2017 as result of returning these financial allocations. In addition, the company added two new petrochemical carriers to its fleet which contributed in increasing its assets value by 12% to reach AED 1,076 billion compared to AED 959 billion in 2016, with a total increase of AED 117 million. This progress significantly contributed in enhancing the company's revenues gained from shipping the petrochemicals and petroleum derivatives, as well as expanding the company's presence in various markets. On the another side, the company has successfully managed to reduce its operating expenses by AED 5.5 million during 2017 through internal restructuring in order to achieve the highest level of operational and commercial efficiency at the lowest cost.

Commenting on the company's financial progress, H.E Khamis Juma Buamim, Board Member, Managing Director and Group CEO of Gulf Navigation Holding Group "The shipping and marine services sector in our region is ultimately promising for those who know how to benefit from it and who have the experience to establish a well-planned strategy to invest in this industry with its numerous opportunities. We are proud to be a success story because we are the first and the only shipping company listed in Dubai Financial Market and we are committed to contribute to the national economy diversification. We attribute our success and achievements to the constant support and guidance from our Board of Directors who sustains our strategic plans that aim at achieving greater revenues for our shareholders and strategic partners. Moreover, we would like to extend our appreciation to TABARAK Investment and major shareholders for their trust in our ability to achieve more success."

Gulf Navigation's constant efforts and strategic plans have encouraged the investors and shareholders to raise their stake in order to increase their returns. The capital increase to reach AED 1 billion has been processed through the "Rights Issue" that started on February 11 and will end by February 22.

Furthermore, the company has emphasized that the financial returns from "Rights Issue" will be used to support its strategic plans to increase its fleet to 20 vessels by 2020 aiming to meet the increasing demand for shipping petroleum and petrochemical products that was declared by a number of the leading oil majors in the region such as ADNOC and Saudi Aramco.

Moreover, "Gulf Navigation Holding PJSC" was able to select a number of internationally recognized and award winning maritime professionals to join the company. In 2017, it launched several strategic partnerships, such as the partnership with Polimar Turkish Holding specialized in providing integrated marine services and supplying materials for ship maintenance. In addition to the strategic partnership with Ali & Sons Marine Engineering Factory which will create new opportunities for Gulf Navigation in the oil and gas sector and offshore services. In addition, Gulf Navigation has recently announced reaching final stages of negotiations to acquire a majority stake in Atlantic Navigation Holdings (Singapore) Limited. This acquisition will add to its assets significant capabilities in the field of special tugs, offshore supply vessels and crew transportation. These partnerships will definitely contribute to henhancing Gulf Navigation's position as a "one-stop shop" for the marine services sector.

Press Release