Qatar-based shipping group Milaha has reported that its overall revenues declined 7% in the first six months of this year compared with the first half of 2015, despite an increase in container volumes. Its Port Services division was adversely affected by lower demand for ancillary services and reduced shipments of non-containerised general cargo and ro-ro traffic. In addition, pricing pressures faced by the container shipping unit dampened this unit’s results.
More positively, Milaha’s Gas & Petrochem division’s revenue grew by 56% despite a global slowdown in the shipping market. The investment in two LNG carriers made in the second half of 2015, and the mid to long-term nature of the majority of charter contracts, largely insulated this segment from market pressures during the first half of 2016.
Milaha Offshore’s revenue declined by 12% as a result of the extremely challenging offshore business environment. “Despite cost saving measures that have significantly reduced operating expenses, operating and net profits continued to be under pressure due to volatility in the oil and gas market,” a company spokesperson said.
In its recently announced half year results Milaha nonetheless reported an overall net profit of QR 553 million (US$151.88 million) for the six months ended June 30, 2016. This compared to QR 442 million (US$121.4 million) for the same period in 2015.