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Dubai-based Gulf Navigation Holdings (GNH) has achieved an encouraging turnaround in its financial performance with a marked increase in profitability last year. Net profits for the group were up to AED 21 million in 2023, compared with a net loss of AED 7.6 million in 2022.
Gross profits for the year reached AED 9.6 million, mainly driven by the company’s chartering business, although gross revenues from operations during the year decreased by 23% to AED 106 million, primarily due to necessary repairs and vessel drydocking. However, other revenue and income increased by 64% to AED33 million, as a result of improved resources management and restructuring, to more than offset this.
According to Ahmed Kilani, Gulf Navigation’s CEO, “This positive trend is a testament to the effectiveness of our strategic initiatives and the dedication of our team. The uptick in profits reflects our continued focus on driving operational efficiencies, optimising our business portfolio and capitalising on positive market opportunities. Additional prudent cost management efforts have also positively impacted on our bottom line, allowing us to realise greater returns on our investments.”
Currently Gulf Navigation has a fleet of ten vessels, including four MR type tankers, four offshore vessels, a well stimulation vessel and a livestock carrier. The group sold one MR tanker in 2023, and is currently considering various options for vessel acquisition, either through newbuildings or activity on the second hand market. The expectation is that the company will expand its fleet with the addition of at least two MR vessels before the end of 2024.
Towards the end of 2023 the group submitted an offer to acquire Brooge Petroleum and Gas Investment Company (BPGIC), a leading independent oil storage company with the second largest oil storage facilities in the port of Fujairah. The deal is currently subject to due diligence by both parties and is expected to be concluded before the end of 2024.
