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Qatar Navigation (Milaha) has announced its financial results for the year ended December 31st, 2014, and they make generally good reading for the Doha-based shipping and ports group. Operating revenues of QR 2.63 billion compared with QR 2.30 billion for the same period in 2013, an increase of 14%, while the net profit of QR 1.049 billion when set against QR 950 million for the same period in 2013, represents a 10% upturn in profitability.
Milaha’s Gas & Petrochemicals division had an extremely strong year relative to 2013, as Very Large Gas Carrier (VLGC) market rates hit record highs, significantly boosting the group’s bottom line. In addition, the company’s product tankers posted much higher profitability, due to higher freight rates. Another positive set of results came from Milaha Trading where the net profit also increased significantly relative to 2013 due to a boost in sales of heavy equipment in response to a ramp-up in infrastructure projects in Qatar.
However, it was not all good news, profits for Milaha’s Maritime & Logistics business declined slightly relative to 2013, and this is attributed mainly to one-off expenses related to ‘vessel impairments.’ In addition, results at Milaha’s Offshore division declined significantly, as Halul Offshore faced unexpected vessel off-hires, along with delays in the delivery and deployment of new vessels, driving up operating expenses without matching revenue increases.
Milaha’s board of directors said they are satisfied with the 2014 performance. “We are extremely pleased with our overall results, particularly given where we were at the end of the first half of 2014,” said Khalifa Ali Al-Hetmi, president and chief executive of Milaha. “The increase in project-related activity in Qatar improved trade volumes while the Qatar equity markets rebounded from the decline in the 2nd quarter.”
