Dubai-based Gulf Navigation Holding recorded a 19% increase in revenue in first 9 months of 2019. However, the company recorded a further net loss of AED 18 million in the third quarter of this year, taking total losses over the first 9 months of 2019 to AED 46 million. The decline in the company’s financial performance is said to be the result of the high operating costs of its vessels combined with lower asset utilisation rates.
There have been some positive developments of late, however, which may bode well for the future. Gulf Navigation has completed a 10-year special survey and ballast water treatment installation program on four vessels that are chartered to SABIC. The company says it has also managed to secure spot and long-term charters for all its nine ocean going vessels. To reduce costs, the company has restructured its operations, reorganised its subsidiaries and is now looking to outsource its ship management functions.
Saeed Mubarak Al Hajeri, Chairman of Gulf Navigation Board, commented: “We continue to resolve legacy issues and I am confident of achieving operational and financial excellence in the near future. We look forward to wrap up a challenging year on a positive note and prepare ourselves for a positive 2020.”