(MENAFN- The Peninsula) The Peninsula
DOHA: Gulf International Services (GIS), the largest services group in Qatar with interests in a broad cross-section of industries, has reported QR1.31bn in revenue for the first half of 2018 (H1,18), up by 4 percent from a year ago. The group's net profit for the period rose to QR34m, significantly up by 116 percent on the same period of last year with earnings per share of QR0.18, compared to QR0.09 last year.
Revenue in the insurance segment improved significantly versus last year, while the drilling segment reported a moderate growth in revenue.
Revenue in the aviation segment reported a slight decrease, while the catering segment's revenue was moderately down on last year. The improvement in the insurance segment was primarily due to growth in general insurance business, while the drilling segment benefited from improved asset utilization. The aviation segment was affected by reduction in Qatar aviation operations, and the catering segment was impacted by demobilization of some projects and reduced camps occupancy.
The improvement in net profit was primarily driven by a slight growth in revenue and cost reduction in the drilling segment following the aggressive cost optimization initiatives undertaken by the company.
The improvement achieved in the drilling segment was marginally offset by lower profit in the aviation segment due to reduced revenue from Qatar aviation operations.
The effect of revenue decrease in Qatar aviation operations was somewhat offset by other operating revenues and reduced general and administrative expenses.
The group is in the execution phase of some of the opportunities identified by the growth strategy initiatives that were concluded last year. The initiatives include revenue growth and optimisation, cost rationalisation and efficiency improvements. The implementation is in different stages of progress with one of group companies having moved into advanced stages and appointed a consultant specialised in transformation and implementation to assist in the implementation of the chosen strategies.
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