GIS Discloses Strong 2013 Half Year Results

Doha, July 30 (QNA) - Gulf International Services ("GIS" or "the group"; QE: GISS), the largest service group in Qatar, announced its financial results for the six months ended June 30, 2013 with revenue of QR 1.1 billion and net profit of QR 0.3 billion. In a statement to the Qatar Exchange (QE), Ebrahim Al-Mannai, Chief Coordinator, Gulf International Services stated, "The group closed the first half with revenue of QR 1.1 billion - the group's highest first half revenue on record, and an almost 90% increase on the prior year, and net profit of QR 0.3 billion, which was just under 50% up on the prior year. All segments contributed to this extremely positive year-on-year growth." Commenting further on the group's achievements during the first half of this year, Al-Mannai elaborated, " Gulf International Services ' performance during the first half of this year was a success largely attributable to the ambitious growth plans of each segment. GIS witnessed the inauguration of a new state-of-the-art rig, an addition of four new helicopters to the fleet and an increase in the medical insurance line of business by securing new policyholders. The Group all in all reported the highest revenue since inception." Providing details on the most notable developments of the second quarter of 2013, Al-Mannai stated, "Firstly, Gulf Helicopters Company entered into a contract with for two AW-139 helicopters in support of that company's petroleum operation in Malaysia. The Drilling segment witnessed a number of significant events during the last few months. HE Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry, Chairman and Managing Director of Gulf International Services , inaugurated one of the most technologically advanced offshore drilling rigs to ever work in the State of Qatar, Al-Jassra. GDI already secured a four year contract for this rig with Maersk Oil for drilling and well work-over activity in Qatar's largest offshore oil field, the Al-Shaheen field. Lastly, GDI signed three contracts providing for the continued use of its offshore rigs: two with Qatar Petroleum covering the Al-Doha and Al-Zubarah rigs and one with Occidental Petroleum of Qatar LTD covering the Al Rayyan rig." Group revenue for the six months ended June 30, 2013 was QR 1.1 billion, representing a significant increase of QR 528.1 million, or 89.4% over the same period last year, and a QR 144.1 million, or 14.8%, positive variance versus the 2013 budget. The revenue recorded in the first half of 2013 was the highest since the group's incorporation in 2008, and was fueled by growth across all segments. The group's insurance subsidiary registered record half year gross insurance revenue of QR 336.8 million, a resolute QR 52.5 million, or 18.4%, improvement on 2012. The primary drivers for the year-on-year performance were growth in sums insured and premium inflation in the core Energy business, and the ongoing success of the Medical line's market expansion plan which saw a number of new businesses join the Al Koot Global Care Medical Insurance Scheme. Net commission income, consisting of management fees and reinsurance commissions, increased by QR 7.0 million, or 35.3% over 2012. The results were in line with the budget for the half year. Aviation segmental revenue totalled QR 308.3 million, an exceptional improvement on 2012 of QR 62.1 million, or 25.2%. A number of factors contributed to this increase on last year - new contracts entered into, revised contract rates and an increase in the number of helicopters in the fleet in operation (2013, Q2: 44 helicopters versus 2012, Q2: 40 helicopters). In total, the segment reported a noticeable positive variance against budget of QR 39.8 million, or 14.8%. Revenue in the Drilling segment closed the period ending June 30, 2013 at QR 381.1 million, a remarkable year-on-year increase of QR 82.7 million, or 27.7%. This performance was largely driven by the commencement of operations of the Al Jassra offshore rig and Dixie Patriot lift boat, higher day rates for Al Zubarah and Al Rayyan, as well as the addition of two land rigs, GDI-5 and GDI-6. In total, the segment exceeded the budget by QR 34.3 million, or 9.9%. The first half of the year represented the first full results for the catering business, Amwaj Catering Company. The company contributed QR 474.1 million to group revenue, representing the largest contributing segment at 42.4% of total group revenue. The company's main business lines, viz. industrial catering services, corporate hospitality and VIP catering services, made up circa 70% of revenue, with the remainder attributable to manpower and facility services related to the engagement of approximately 2,900 workers distributed over 24 projects within Qatar. Compared to last year, the segment outperformed results by QR 413.2 million. However, last year's first half results only included revenue from the date of the company's acquisition, June 1, 2012. In total, the segment reported a significant positive variance against budget of QR 101.6 million, or 27.2%.(QNA)