Gulf International Services revenue for H1 reaches QR1.25bn

01/08/2017 05:55 AST

Gulf International Services (GIS) has reported a total revenue of about QR1.25bn for the first half (H1) of the current financial year ended June 30, 2017, down by 22 percent compared to the corresponding period last year.

The Group's net profit for the period (H1, 2017) closed at QR15.8m. Earnings per share was QR0.09 as of June 30, 2017.

GIS is the largest services group in Qatar with interests in a broad cross-section of industries, ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services.

The impact on the profitability was due to significant revenue reduction in drilling, catering and insurance segments, despite marginal improvement in the aviation segment performance. Cash position remained strong with closing cash of QR1bn across all group companies as at June 30, 2017.

The GIS, in a statement said that the drilling segment of the group continues to face challenges and the revenue of the segment declined due to lower daily rate of rigs, an asset not in operation and due to the impairment of one of the rigs.

Catering segment revenue is impacted by demobilisation of some of its major contracts in the second half of 2016. General downturn in medical and general insurance business and rate reduction affected the insurance segment. However, the performance of the aviation segment marginally improved from previous year.

Initiatives are undertaken by the group companies to assess the impact of the current political crisis. Aviation segment was forced to suspend a contract in one of the blockading countries under force-majeure. The group companies are also assessing number of alternatives and new opportunities, and further rationalisation of the costs together with optimising the utilisation of the operating assets and the supply chain are underway across the group.

The Peninsula