· Operating revenue of AED 130mn in the first 9 months of 2019 achieving a YoY increase of 19%
· Q3 net loss at AED 18mn due to the high operating costs of vessels coupled with lower vessel utilization in the quarter
· Working to optimize cost structure by outsourcing technical ship management to a third party
Dubai, UAE, 24 October 2019: Gulf Navigation Holding PJSC (“GNH” or “Company”), the Dubai Financial Market listed maritime and shipping company, has announced a 19% operating revenue growth by end of Q3 of 2019, compared to the same period last year. The company recorded an operating revenue of AED 130 million compared to AED109 million in the same period of 2018. The company reported a net loss of AED 18 million in Q3 of 2019, bringing total losses in the first 9 months of 2019 to AED 46 million. The decline in the company’s financial performance is due to the high operating costs of vessels coupled with lower asset utilization in the quarter.
Gulf Navigation has adapted well to the economic challenges in the first 9 months of 2019. The Company has successfully completed the 10-year special survey and ballast water treatment installation program on its 4 vessels that are chartered to SABIC. After a period of underutilization, the company has now managed to secure spot and long-term charters for all 9 vessels. On cost structure front, the Company has restructured its operations and reorganized its subsidiaries to ensure continuity of its operations and enhanced its productivity at the lowest possible costs for the near future. The Company is also looking to outsource its ship management function to optimize its cost structure and enhance governance.
Mr. Saeed Mubarak Al Hajeri, Chairman of Gulf Navigation Board emphasized, “Today, we continue to work on opportunities to drive positive changes through operational and administrative reorganization. Gulf Navigation is now a more nimble and dynamic company than ever before. We continue to resolve legacy issues and I am confident of achieving operational and financial excellence in the near future. We look forward to wrap up a challenging year on a positive note and prepare ourselves for a positive 2020.”