Tribune news network
Doha
Gulf International Services (“GIS” or “the Group”), reported a net profit of QR161 million for the three-month period ended 31 March 2024, with an earnings per share of QR0.0867.
Group’s revenue for the three-month period ended 31 March 2024 amounted to QR940 million, with an increase of 12 percent compared to the same period of last year. All subsidiaries witnessed growth in revenue compared to last year supported by improved day rates, higher asset utilization from the aviation and drilling segments and higher-flying hours in addition to improved premiums from the insurance segment.
The Group reported an EBITDA of QR268 million and recorded a net profit of QR161 million for the three-month period ended 31 March 2024. Improved profitability was mainly driven by growth in revenue coupled with reduction in finance costs by 49 percenton the back of the new debt restructure.
Revenue for Q1-24 increased by 4 percentcompared to Q4-23, mainly on account of higher revenue reported from the aviation segment due to higher revenue from the domestic and MRO segments in addition to higher revenue from the drilling segment due to Rumaila commencing operations starting mid-March of this year.
On the other hand, net profit of QR161 million was reported during Q1-24 as compared to a net loss of QR23 million during the previous quarter, a significant increase by 801%.
This increase in the Group’s net profit was mainly due to higher profitability from the aviation segment due to increase in revenue, and lower net monetary losses arising from the accounting impact of hyperinflation from GHC’s Turkish subsidiary.
While the drilling segment’s reported profit compared to loss in the previous quarter mainly due to lower direct costs associated with lower maintenance costs and lower G&A expenses in addition to lower finance costs amid the debt restructure and one-off upfront fees related to the debt restructure paid in the previous quarter.
Moreover, loss of QR27 million was reported in the previous quarter as a result of the merger of Amwaj subsidiary.
The Group’s total assets remained flat compared to last year and stood at QR10.1 billion as of 31 March 2024. Cash and short-term investments stood at QR1.1 billion, down by 15 percent as compared to 31 December 2023. The decline in cash and short-term investments was mainly linked to payment of dividends for the financial year 2023.
Total debt at Group level amounted to QR4.32 billion as of 31 March 2024. The recently concluded debt restructure has already begun to yield benefits as we witnessed a reduction in finance costs as compared to the previous year. The debt restructure aims to provide greater flexibility to manage liquidity and ease pressure on the Group’s financial position.
