DUBAI, 14th May, 2018 – Gulf Navigation Holding PJSC has announced a 5 percent increase in its gross profits by the end of first quarter 2018 in comparison to the first quarter 2017.
This announcement comes consequently with the company’s successful completion of the requirements needed to make the Gulf Navigation compliant with the Islamic Sharia laws listed in the Dubai Financial Market.
The Dubai-based company said its gross profit has reached AED10.15 million (US$ 2.78 million) in the first quarter of 2018, compared to AED9.6 million ($2.6 million) achieved during the first quarter of 2017, marking an increase of 5 percent. This increase reflects the company’s exceptional efforts to maintain its constant growth in various fields, mainly the company’s success to increase its assets by adding “Gulf Mishref” and “Gulf Mirdif” vessels to its fleet.
This expansion has positively affected the company’s assets with an increase of 12 percent during 2017, in addition to an increase of 28 percent in gross revenues that reached AED37.7 million in the first quarter of 2018, compared to AED29.4 million during the first quarter last year. Moreover, the increase in revenues was accompanied by an increase in the operating expenses reaching AED27.5 million during the same period, compared to AED19.7 million in the first quarter of 2017.
The successful acquiring of the two petrochemical carriers to “Gulf Navigation Holding” fleet is significant to enhance the company’s petrochemical transportation capabilities. The company aims at expanding its fleet to reach 20 multipurpose vessels by the second quarter of 2020.
The increase in oil prices during 2017 has created more opportunities for the company, especially with the increase of petroleum derivatives production in the Gulf Region, as part of its strategy to overcome the decline in crude oil prices two years ago. This has contributed to increasing the company’s demand of petroleum products and petrochemicals transportation. On the other hand, the company is currently handling ongoing discussions to increase its market share in the United States oil market that is witnessing remarkable growth.
Khamis Buamim, Board Member, Managing Director and Group CEO of Gulf Navigation Holding, said, “Diversifying our group’s income resources through various operational sectors, in addition to the initial improvement in the shipping sector, makes us optimistic and confident about our operational and financial results in 2018. Furthermore, we have managed to become a ‘one-stop-shop’ for the marine services sector. This has contributed to increasing our revenues generated by our main activity of transporting petrochemicals and petroleum derivatives.
“While the industry is facing major challenges, which have negatively affected several companies and caused an increase in business costs and fees, we, at Gulf Navigation Holding, have focused on communicating with the leading companies in the Gulf Region and the United States of America as they are the major players in filtering and refining operations. Moreover, we have been able to obtain many opportunities that are currently under discussions and we are expecting more revenues coming from this market, especially with the focus on increasing petrochemical derivatives production and oil-refining capabilities in both regions.”