Twofold Increase in Gulfnav’s Profit

Dubai-based tanker owner and operator Gulf Navigation Holding PJSC has reported a 101 percent profit growth by the end of year 2015 compared to the same period a year before.

Being amidst a strong and consistent financial turnaround, the company said it continues its efforts to address creditor concerns.

Gulfnav’s net income reached AED 20.1 million (USD 5.5 million) for the year ended 31 December 2015. This was significantly higher compared to the 2014 profit of AED 10 million (USD 2.7 million).

For the year 2015, the company’s total revenues also experienced a considerable increase of 12%, with earnings reaching AED 143.1 million (USD 39.1 million). The revenues during the year 2014 stood at AED 127.7 million (USD 34.8 million).

“By the end of 2015, Gulfnav continued to achieve a sizeable profit improvement from 2014. All our operating segments have significantly contributed to the overall net earnings of the Company. Our higher revenues in the year 2015 were also the result of several key factors, most notably the healthy increase in volume of our shipping services, marine product sales and distribution business, improvement in chemical tanker spot rates, reduced finance costs and significant reduction in off-hires,” Salem Ali Al Zaabi, Vice Chairman of Gulf Navigation Holding PJSC, said.

Al Zaabi added that the company is striving to resolve disputes “with the specified parties and to reach an amicable settlement”.

Last year the company was in a dispute related to a crude oil tanker chartered from Nordic American Tankers, which the company returned early. As part of the settlement between the companies, Gulfnav agreed to issue USD 10 million of mandatory convertible bonds.

The company also had some troubles with the Chinese shipyard Zhoushan Jinhaiwan Shipbuilding when it cancelled two VLCC newbuilding orders. Gulfnav was obliged to pay the second part of the building contract with interest.

“We hope to continue the trend of soaring profits in the year 2016 by focusing on further optimizing our core strengths, cost structure and introducing new products and services,” he said.