Nakilat: Strong earnings results in third quarter of 2020

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Nakilat reported a net profit of QR 900 million for its financial results for the third quarter ended 30 September 2020, an increase of 23.6% compared to QR 728 million during the same period in 2019.

Key financial highlights from the third quarter of 2020:

• Net profit of QAR 900 million, increase by 23.6%
• Revenue of QAR 3,065 million, increase by 12.2%
• General and administrative expenses reduction by 18.7%

Nakilat’s Board of Directors commended the company’s solid earnings results, which are primarily attributed to the implementation of the company’s strategic initiatives across all levels, driven by the company’s growth strategy and cost optimization. In addition, the board highlighted that the financial and operational performance results are a testament to Nakilat’s perseverance and resilience towards maintaining its leadership in the global energy transportation market.

Whilst the entire industry is challenged by the ongoing global pandemic, Nakilat’s defensive business model has allowed the company to navigate smoothly with the required flexibility to continue to deliver clean energy worldwide reliably, ensuring no disruption to its business. Nakilat remains committed to generating sustainable returns to its shareholders.

In addition, the company’s ship repair, offshore fabrication, towage and shipping agency businesses remained fully operational throughout this period.

The company’s robust financial performance is primarily attributed to operational excellence in the management of its Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) vessels, as well as the strategic acquisition of the remaining 49.9% of four Q-Flexs on October 2019. The successful commencement of Nakilat’s second phase fleet management transition is among the main attributes to the positive financial results achieved, with six vessels transitioned to in-house management since May 2020. The company also followed through its fleet expansion plans and took delivery of an LNG carrier newbuild, which is being commercially and technically managed in-house and chartered by Qatargas.

The delivery of all four newbuild LNG carriers by the end of 2021 will bring Nakilat’s fleet to 74 vessels comprising of 69 LNG vessels which is about 12% of current global LNG fleet in carrying capacity, 4 LPG vessels, and 1 Floating Storage and Regasification Unit (FSRU).

Nakilat Chief Executive Officer Eng. Abdullah Al Sulaiti said:

“Amidst the ongoing global health concerns, Nakilat remains focused on its strategic goals and committed in delivering value for our shareholders. The company’s steady financial results highlight the significant efforts and contributions of our employees, especially our dedicated seafarers, who have been showcasing exceptional performance in operating the vessels without compromising safety and quality across our integrated operations. Nakilat’s superior operational excellence in energy transportation and maritime services greatly supports Qatar’s vision in developing the LNG market, as well as contributes toward developing the country’s shipping and maritime industry. With greater demand for clean energy globally, Nakilat is ambitious in expanding our international outreach and diversifying our portfolio to meet the growing energy transportation needs. We are continually assessing the market and our current investments to address any emerging risks, allowing us to tactfully navigate any unexpected challenges as we steer forward to be global leader and provider of choice for energy transportation and maritime services.”

Source: Nakilat

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