Qatar-based maritime transport and logistics company Qatar Navigation (Milaha) closed 2018 with a 10% rise in its net profit.
The company delivered a net profit of QAR 516 million (USD 141.7 million) for the twelve months ended December 31, 2018, compared to QAR 470 million for the same period in 2017.
“We are pleased with the year-on-year improvement in performance. There are still some challenges in the markets in which we operate, but we remain well-positioned to continue driving sustainable growth and delivering value for our clients and shareholders,” H.E. Sheikh Jassim bin Hamad bin Jassim Al Thani, Chairman of Milaha’s Board of Directors, commented.
On the other hand, operating revenues dropped to QAR 2.4 billion in 2018, from QAR 2.5 billion seen in 2017.
Milaha’s operating profit stood at QAR 397 million in 2018, down by 11.4% from QAR 448 million recorded in 2017.
Milaha Maritime & Logistics’ operating revenue decreased by QAR 41 million, and net profit decreased by QAR 54 million, mainly due to vessel impairments taken in the company’s container shipping unit and competitive pressures on container pricing.
Additionally, Milaha Gas & Petrochem’s operating revenue and net profit essentially remained flat with the same period last year.
Furthermore, Milaha Offshore’s operating revenue improved by QAR 122 million, and bottom line improved by QAR 177 million due to the addition of new vessels, stronger vessel utilization and lower impairment charges.
Finally, Milaha Capital’s net profit decreased by QAR 62 million due to lower financial portfolio trading returns.
“We started and ended the year on the right track financially as well as operationally. We continue to focus on our core business growth, cost control, and disciplined capital allocation. This all translated into better performance and shareholder value,” Abdulrahman Essa Al-Mannai, Milaha’s President and CEO, said.
“In 2018 we expanded our container shipping reach into new markets, launched the first phase of the Milaha Logistics City, and significantly improved our offshore segment’s performance. We believe this is a testament to our capability to act on the right opportunities as they arise, and to our confidence in the future of the maritime and logistics sector in Qatar and the region,” he added.
On February 24, Milaha and terminal operating company QTerminals signed a Terminal Services Agreement for operations at Hamad Port. Milaha and QTerminals will work to promote trade in and out of Qatar.
QTerminals was established by Milaha and Qatar Ports Management Company (Mwani Qatar) to provide container, general cargo, RORO, livestock and offshore supply services in Phase I of Hamad Port.