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Gulf International Services (GIS) Group has reported a revenue of QR2.2 billion, an increase of 18 percent compared to the corresponding period last year, the company announced in a statement on Tuesday.
The revenue growth, supported by the strong operational performance, was largely reflective of the growth recorded by insurance and drilling segments.
For the nine month period, the Group has averaged an EBITDA of QR526 million, representing a marginal decline of 4 percent compared to the same period of last year.
Net profit for the nine month period reached QR35 million, a decline of 12 percent compared to the same period last year.
Revenue for the third quarter reached QR767 million, representing an increase of 2 percent compared to the second quarter of 2019.
Net profit for the third quarter of 2019 advanced 31 percent to reach QR5.3 million, compared with QR4.0 million in the second quarter of 2019.
The Group’s total assets largely remained unchanged at QR10.5 billion as at 30 September 30, 2019. On the liquidity front, the closing cash, including short-term investments, stood at QR1.1 billion with a total debt of QR4.9 billion.
GIS said since the beginning of 2019, the company has undertaken commendable measures aimed at improving its financial performance through cost optimisation, supported by stronger operational performance.
The Group continues to execute some of the initiatives, which are in various stages of completion and are on track.
The financial results reflected continued performance by the drilling segment, demonstrating a strong recovery due to high utilisation of its offshore rigs.
The insurance and aviation segments also delivered improved set of financial results, contributing to the Group’s bottom line, mainly led by market share gains and the introduction of new business lines.
Commenting on the Group’s performance, GIS management, said, “GIS delivered an improved set of financial and operational results led by the Group’s focus on high utilisation of its assets, combined with a commitment to expand market share.
“The Group continues to work on rationalising operating costs, which are at various stages of implementation to reposition the Group’s market standing. Also, the Group has embarked on new initiatives to improve the capital and debt structures and we are confident that this would further improve the overall operational efficiency in the near future.”
Drilling: The performance of the drilling segment was fueled by the offshore sector with the successful deployment of the new offshore drilling rig, ‘West Tucana’, contracted via a strategic partnership.
Furthermore, the segment continued to focus on maximum utilisation of its assets such as the deployment of the lift-boat ‘Rumailah’ at the beginning of the year, after undergoing repair services.
As a result of improved activities, the segment on overall basis was able to reduce the net loss in the first nine months of this year, when compared to the same period last year.
Looking ahead, the drilling segment is uniquely placed to unlock solid growth opportunities, mainly due to the North Field expansion project for which GIS was awarded a contract to provide six premium jack-up rigs, which will commence operations in various phases in 2020.
Insurance: The insurance segment improved against a backdrop of expansion in the core energy business. Also, the ongoing market expansion strategy by the Group’s medical business acted as a critical catalyst in securing a large number of corporate clients. Notably, the segment also secured three major contracts during the first nine months of the year. In a bid to minimise the risk associated with medical insurance claims, the Group entered into a reinsurance model, wherein the claim settlement process would be carried out more efficiently.
Aviation: The aviation segment reported a moderate growth compared to the last year, driven mainly by its international division that secured short-term contracts in Pakistan and South Africa, and supported by higher revenues by its Turkish subsidiary, Red Star Aviation. The domestic aviation business, primarily comprising of Oil & Gas services and VIP services, continued its positive business trajectory. Furthermore, the acquisition of 49 percent stake in Air Ocean Maroc is set to reignite growth within the segment going forward.
Catering: The Group’s catering segment was impacted due to the demobilisation of major contracts and a reduction in labour accommodation occupancy. However, the segment continues to explore opportunities from both industrial and non-oil and gas sectors.
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