
Gulf Navigation Holding, the only shipping company listed on Dubai Financial Markets, has reached a key landmark in its ongoing restructuring programme, by completing a capital reduction after securing the necessary shareholder, regulatory and ministerial approvals. In order to present a clean balance sheet to shareholders and investors the company has reduced its share capital from AED 1.65 billion to AED 551.7 million, writing off accumulated losses of over AED 1.1 billion. Existing shareholders now hold one share for every three held previously.
Gulf Navigation has also secured approval to increase the foreign shareholding limit up to 49% from 20% before. This is aimed at securing foreign investors who are said to want to acquire a significant equity stake in Gulf Navigation.
The company has been working on a turnaround and restructuring plan since last year. The company believes it is now in a much better position to present investment proposals to a global audience and is considering appointing a leading international investment banker to help raise finance from global capital markets. This additional capital would be used to help the company expand, by acquiring chemical and product carriers.
Gulf Navigation’s financial performance has steadily improved and it achieved a profit of AED 0.54 million in the first quarter of 2014. The company has recently chartered four chemical tankers to SABIC of Saudi Arabia for a 9-year time charter period and this has helped boost both revenues and profits, Gulf Navigation states. The company’s agency business is also showing growth, helping achieve better financial results.



















