Gulf Navigation announced its best annual results for eight years yesterday, thanks to an improvement in spot tanker rates and the reclassification of liabilities.
The Dubai-based shipper said that profits for the year rose to Dh136.7 million, compared with Dh20.2m in 2015. Profits for the fourth quarter hit Dh5.4m, compared with Dh4.5m a year earlier.
Much of the increase in annual profits was thanks to Dh107.8m worth of liabilities the company described as not requiring writing back, including a “derecognition” of Dh90.6m worth of liabilities during the year.
Operating revenue fell by 4 per cent to Dh129.5m, owing to a drop in vessel charting revenues.
“Further improvement in chemical tanker spot rates specifically contributed to increased margins along with further rationalisation of our cost structure, which led to lower finance and overhead costs,” said Khamis Buamim, Gulf Navigation’s group chief executive. “We have also achieved giant strides in resolving a number of legacy issues which we expect to be fully resolved in the coming period.”
Gulf Navigation last month announced a global deal with maritime firm Polimar Turkish to provide services related to the oil and gas sector, offshore vessels, container liner vessels, bulk carriers, cruise ships and yachts.
The company’s shares closed 3.6 per cent lower at Dh1.60 yesterday.
jeverington@thenational.ae
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