Milaha Reports Improved Net Profit for Q1
Qatar Navigation (Milaha) Q.S.C. has announced its financial results for the three months ended March 31, 2015, in which it reported operating revenues of QR 786 million vs. QR 699 million for the same period in 2014, an increase of 12% quarter over quarter. Operating profit of QR 279 million vs. QR 273 million for the same period in 2014, an increase of 2% quarter over quarter, net profit of QR 365 million vs. QR 349 million for the same period in 2014, an increase of 4% quarter over quarter, and earnings per share of QR 3.21 vs. QR 3.08 for the same period in 2014.
Strong year on year growth in the core businesses more than offset a decline in the returns from Milaha’s investment portfolio. Each of Milaha’s core segments – Maritime & Logistics, Gas & Petrochem and Offshore – improved their combined bottom line by 71% relative to Q1 2014.
Continued strong growth in trade volumes, driven by the ramp up in project activity in Qatar, resulted in a 25% increase in revenue and 175% increase in net profit for Milaha Maritime & Logistics, with a positive impact on Port Services and Container Shipping units in particular.
Milaha Gas & Petrochem’s revenue grew by 39% and its net profit by 45%, on the back of stronger performance in its fully owned and operated product tanker and gas carriers, as well as higher VLGC rates relative to Q1 2014. In addition, the segment benefited from the full year effect of 19 harbour vessels, some of which were received through mid year 2014.
Milaha Offshore improved from Q1 2014 despite weaker market conditions driven by the steep decline in oil prices and the cutbacks on capital spending by oil majors in the region and beyond.
The actively managed investment portfolio of Milaha Capital, despite outperforming the Qatar Exchange index, was negatively impacted by the volatility in Qatar’s equities market in the first quarter, driving a 31% decrease in the segment’s net profit.