|
(The Group’s Comments) Gulf International Services’ Net
Profit Drops to QAR 29.3 Million for the First Half of 2019
August 04, 2019
Profits: Gulf International Services’ (GIS)
net profit fell by 14.4% to QAR 29.3 million for the first half
of 2019, compared to QAR 34.2 million for the same period of
2018, while its earnings per share amounted to QAR 0.016 versus
QAR 0.018. As for the second quarter, the company posted a net
profit of QAR 4.0 million, compared to QAR 24.8 million for the
corresponding second quarter of 2018.
Comprehensive Income: GIS recorded an
assessment profit through the comprehensive income statement of
QAR 4.4 million, versus a loss of QAR 1 million for the same
period of 2018.
Revenues: increased by 16.7% to QAR 1,471
million for this year’s first half, compared to QAR 1,260
million for the corresponding period, as a result of the
increase in revenues of insurance. Drilling accounted for about
39% of total revenues, which grew as a result of the operation
of the new “West Tucana” offshore drilling platform for Qatar
Gas, through a strategic partnership with Seadrill. Revenues
from insurance accounted for 26% due to the signing of an
insurance contract with Qatar Airways. Aviation revenues on the
other hand stood at 20% of total revenues, while revenues of the
catering services decreased slightly by 2%.
Revenue Cost: increased by
21% to QAR 219.4 million, resulting in a decrease in gross
profit from QAR 216.4 million for the period ended on June 2018
to QAR 207.8 million for the same period of 2019. The climb in
revenue costs resulted from the increased insurance costs
(reinsurance) in parallel with the growth of its revenues, which
negatively affected the margins of profitability by about 4.0%.
The ratio of revenue costs to revenues accounted for 86% versus 83%
for the same period last year.
Expenses: Despite the decrease in the
administrative and general expenses of the company by QAR 15.2
million, the increase in financing costs by QAR 16 million as a
result of the implementation of Standard No. 16 related to
operating leases resulted in fixed expenditure of about QAR 214
million.
|
