Gulf Navigation achieved a 19% increase in operating revenue over the course of the first quarter of 2019 compared with the same months of 2018. However, despite this positive trend, the company reported net loss of AED 11 million in the first quarter of this year, compared to profits of AED 5 million during the equivalent period of last year.
The company primarily attributes this loss to the fact that its petrochemical tanker, Gulf Deffi, entered drydock for mandatory special survey work in this period. This resulted in 50 days of off-hire for the vessel, adversely affecting profitability.
Chairman of the board, Saeed Mubarak Al Hajeri, commented: “We are reviewing all strategic growth options to return the company to profitability. Our immediate focus is to complete the necessary vessel drydockings, and achieve debt refinancing to align Gulf Navigation’s capital structure to its operations.” He said the board expected that the product tanker charter market would become more attractive ahead of the implementation of the IMO 2020 sulphur emissions rules, and that the company was rebalancing its mix of spot and long term charter contracts to optimise operating revenues.
Gulf Navigation is headquartered in Dubai, with branch offices in Fujairah, Khorfakkan and Abu Dhabi as well as an overseas office in the Kingdom of Saudi Arabia. The company operates a fleet of chemical tankers, livestock transport vessels and offshore support ships, and also provides a range of marine and ship repair services.