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Dubai-based Gulf Navigation (GulfNav) Holding recorded a disappointing net loss of AED 24.7 million over the first six months of 2024. According to the company, the performance reflects “strategic decisions and investments aimed at strengthening the company’s fleet and improving the efficiency and sustainability of its operations in the long term.”
During the first half of 2024, two GulfNav petrochemical tankers were drydocked for comprehensive maintenance and upgrades, which will extend their operational life by an additional five years, thereby increasing their revenue generating capabilities. This will also enhance their efficiency and reliability to meet the evolving needs of the company’s clients. In line with its commitment to environmental responsibility and the UAE’s directives to reduce carbon emissions by 60% by 2040, GulfNav has also employed new technologies aimed at reducing carbon emissions during these drydocking periods.
Although these projects have had a temporary impact in terms of the reduction of group revenue, they are expected to generate long-term value for the company’s shareholders. Additionally, as the global economy continues to recover, there is an expected increase in demand for petrochemical shipping services in the second half of the year, which will positively contribute to the company’s financial and operational performance, GulfNav suggests.
GulfNav has also welcomed the decision by Brooge Energy to form a new board to complete an anticipated takeover deal which is expected to progress in the coming weeks. The GulfNav board has recently approved the method of payment for the acquisition of Brooge Energy, which will be through a combination of cash and the issuance of mandatory convertible bonds and new shares.
