Global Arab Network | Qatar Gas Transport Company Optimistic Of Building On Good Profit

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Qatar Gas Transport Company Optimistic Of Building On Good Profit

Friday, 30 July 2010 15:24

Qatar_Gas_Transport_Company_Limited_Nakilat_ship-_12

Qatar (Doha) - Qatar Gas Transport Company Limited (Nakilat), riding on excellent first half financial results, is poised to maximize returns on scheduled deals and the finalization of agreements to deliver of around 25 vessels to clients, top company officials said on Thursday.

The company reported QR 330,057 million profit for the six-month period ended June 30 compared to QR 233,577mn for the corresponding period in 2009.

Managing Director Mohammad Ghannam, speaking to media persons at a conference held at Four Seasons Hotel here said, "Our profits from operations have gone up in H1 and we are optimistic about maximizing returns sometime in the fourth quarter as everything is progressing as scheduled."

Revenue from wholly-owned vessels stood at QR1.28 billion while share of operating profits from joint ventures was QR113.99mn; interest and dividend income by 42% to QR27.91mn and other income more than doubled to QR8.36mn.

Nakilat has 25 wholly-owned LNG vessels with a total investment of $7.5bn. By the end of this year, the company will have a total of 54 vessels, making it the largest liquefied natural gas ship owner in the world. Of these 54 vessels, 29 comprising 20 Q-Flex and nine conventional are joint venture partner held.

The MD expressed his unhappiness over wrong interpretations of the H1 results allegedly reported by a section of the media here. "We are disappointed by a section of the media which reported wrong figures. These reports do not reflect the reality of our good financials. Such kind of negative reports get our shareholders needlessly worried," he said.

Replying to a question on the performance of Nakilat's share on the bourse here, Ghannam replied, "Everybody is underperforming due to the environment. Expectations of shareholders are high here. In the west, if a company pays four per cent dividend it is considered good."

Nakilat reported QR 0.60 basic and diluted earnings per share for H1 period ended June 20 of compared to QR 0.42 for the corresponding period in 2009.

Concurring with Ghannam, Chief Financial Officer Eddy Saputra said, "The current market share of Nakilat is high compared to its IPO so it is good for investors."

Regarding the dividend policy in the future, Ghannam said, "It will be based on the board of directors' decision."

Reaffirming this Saputra said, "Our Company is stable and we make prudent decisions after proper planning. We don t take decisions based on speculation. We are locked in for 25 years here. Although we cannot grow by leaps and bounds, we cannot die either."

Indeed the company reported 124% rise in total income to QR1.46bn. A minor dip of three per cent was reported in income from marine and agency services which was QR13.80mn and profit from Islamic banks more than halved to QR18.65mn.

However, total expenses shot up 147% to QR1.11bn as operating cost of wholly-owned vessels more than tripled to QR194.57mn, finance charges more than doubled to QR619.77mn and general and administrative expenses rose 39% to QR37.70mn.

Total assets were valued at QR32.04bn, comprising current assets of QR2.41bn and non-current assets of QR29.63bn. Total equity stood at QR6.55bn on a capital base of QR5.54bn.

Nakilat officials were upbeat about the company s stable outlook and prospects in the near future. This optimism was recently endorsed by Standard & Poor s which raised Naiklat s rating to AA from A+ earlier this month.

S&P had also raised the issue ratings on Nakilat senior secured bonds to 'AA-' from 'A+', and the issue ratings on its secured subordinated bonds to 'A+' from 'A'.
(QNA)

Global Arab Network