Qatar Navigation Announces Third Quarter 2010 Financial Results

Qatar Navigation has reported a net profit of QR 1253 million for the period ending 30/09/2010 which includes two one-time gain items.

QR 236 million was realized as a fair value gain on account of Qatar Navigation’s holding of 15% share capital of Qatar Shipping prior to the acquisition. QR 397 million was realized as a gain resulting from the negative goodwill representing the difference between the price of acquisition and the net fair value of the assets of Qatar Shipping.

This gain was determined upon the conclusion of the purchase price allocation report that was completed by an independent international audit firm in the third quarter. Earnings per share after the acquisition amount to QR 10.94 and the company’s capital is QR 1145 million.

“In spite of the slowdown in the global economy and its effect on freight volume and prices, the company was able to achieve strong results due to its diversified activities and strategic investments,” said Qatar Navigation Chairman & Managing Director, Sheikh Ali bin Jassim bin Mohammed Al-Thani. He attributed the positive financial results and achievements of the company during that period to the strong fundamentals and core values of the company in achieving its goals and for its contribution to the economic development in the country.

Qatar Navigation aims to maximize profits and shareholder value. Mr. Khalifa bin Ali Al Hitmi, Qatar Navigation’s Chief Executive Officer stated that the company’s policy of diversifying sources of income, the strength of the Qatari economy and the proactive nature of Qatar’s government enabled the company to overcome the financial implications of the crisis and achieve good results.

The company owns a prestigious and illustrious real estate portfolio, including Qatar Navigation Tower, which was recently leased to Qatar Gas for ten years. HE announced that Roland Berger Strategy Consultants have been appointed by Qatar Navigation to develop a long-term strategy and restructure the company by evaluating and assessing existing and potential business segments and to benefit from the recent acquisition of Qatar Shipping.

The first phase of this project is expected to be completed at the end of the first Quarter of 2011. On a final note, Qatar Navigation has moved to its new headquarters at Al Jazeera Tower, situated in the West Bay area, equipped with the latest in technology and communications.

About Qatar Navigation

Qatar Navigation was established in July 1957, as the first public shareholding company registered in Qatar and holds the commercial registration number (1). The aim in establishing the company was to stimulate the growth in the Qatari economy through the provision of shipping services, transportation and handling services necessary to link Qatar with the rest of the world. The company specializes in maritime transport operations, ports management, shipping agencies, logistics services, ship repair and fabrication, commercial activities, in addition to real estate development and property management.

Qatar Navigation owns Qatar Shipping; Halul Offshore Services Company – one of the largest specialized companies in the region in the provision of marine services to the oil and gas sector; it also owns a 50% stake in Qatar Quarries and Building Materials Company as well as 30% shares in Qatar Gas Transport Company (Nakilat) and 50% of Gulf LPG and stakes in a number of LNG carriers and in United Arab Shipping carriers, chemicals and other associated companies.

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Source: Qatar Navigation, October 19, 2010