(MENAFN - The Peninsula) Gulf International Services (GIS), the largest service group in Qatar with interests in a broad cross-section of industries, recorded highest first quarter revenue and net profit on record for the three months ended March 31, 2014 (Q1, 2014). The GIS recorded a revenue of QR0.6bn and net profit of QR0.2bn for 1Q14.
H E Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry, and the Chairman and Managing Director of GIS, said yesterday in a filing to Qatar Exchange: "The group closed the first quarter with its highest-ever first quarter results: revenue of QR616.7m and net profit of QR188.6m, increase of 11.6 percent and 38.9 percent against the previous year, respectively. These record results can be mainly attributed to the ambitious growth plans in all segments, and most notably the group's drilling joint venture, Gulf Drilling International."
Commenting on the strong first quarter results, Ebrahim Al Mannai, Chief Coordinator, GIS, said: "GIS signed a share purchase agreement on March 31, 2014 with Japan Drilling Company Ltd to acquire JDC's 30 percent shareholding in Gulf Drilling International with effect from May 1, 2014. Pursuant to the terms of the SPA, GIS shall own all of JDC's shares in GDI, making GDI a wholly-owned subsidiary of GIS. In March, GDI and JDC also signed a Letter of Intent that provides for the exchange of further technical cooperation between the two companies and the promotion of mutually beneficial business opportunities. Lastly, GIS is in the final stages of obtaining an 8-year bilateral loan agreement with local banks to finance the purchase of JDC's 30 percent stake."
On the Group's aviation segment's performance, he said, the Gulf Helicopters recently placed firm orders for 15 AW-189 helicopters - AgustaWestland's latest generation aircraft. "Subject to prevailing market conditions, it is expected that 11 aircraft will be deployed in the next 5 years to bring the total count to 54, with the first 2 helicopters expected to be delivered in the second quarter of 2014," he said.
Revenue in the drilling segment is at QR261.6m, a remarkable year-on-year increase of QR 88.5m, or 51.1 percent. This performance was driven largely by the offshore sector, which contributed QR196.1m to total revenue, with the deployment of the Al-Jassra and Leshat offshore rigs in the second and fourth quarters of 2013 respectively, and a minor revision to three rolled-over contracts for Al-Doha, Al-Zubarah and Al-Rayyan during 2013. Quarter-on-quarter, revenue was down by QR30.4m principally due to the booking in the previous quarter of a one-off mobilisation fee for the deployment of the Leshat offshore rig.
Aviation segmental revenue for the first quarter increased by a moderate QR3.8m, or 2.5 percent, to total QR153.0m. Compared to the previous quarter, revenue decreased by QR2.3m due to the expiration of the HEMS contract.
The group's insurance subsidiary registered gross insurance revenue for the period ended March 31, 2014 of QR191.6m, a resolute QR29.7m, or 18.4 percent, improvement on the same period of 2013.
Amwaj Catering Services Ltd contributed QR272.1m to group revenue, representing the largest segment at 44.1 percent. Compared to last year, the segment improved by QR30.6m, or 12.7 percent, due to the expansion of the core industrial catering and manpower contracting services to almost 100 projects throughout Qatar.
Commenting on the group's net profit Al Mannai said, "The 38.9 percent year-on-year improvement was driven by the ambitious growth plans across all segments, especially in the Drilling segment."
The favourable year-on-year positive net profit variance in the drilling segment of QR33.6m, or 82.4 percent, was driven primarily by the commencement of Al-Jassra and Leshat operations, and higher daily rates received for the three extended offshore rig contracts.