Nakilat has reported a net profit of QR 900 million for its financial results for the third quarter (3Q20) which ended on 30 September 2020, an increase of 23.6% compared to QR 728 million during the same period in 2019.
Key financial highlights from 3Q20
- 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 has 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 optimisation. 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.
According to a company statement, whilst the entire industry is challenged by the ongoing global pandemic, Nakilat’s defensive business model has allowed it to navigate smoothly with the required flexibility to continue to deliver clean energy worldwide reliably, ensuring no disruption to its business. 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 has been primarily attributed to operational excellence in the management of its LNG and 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 has 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 – approximately 12% of current global LNG fleet in terms of carrying capacity – four LPG vessels, and one floating storage and regasification unit (FSRU).
Commenting on the company's latest results, Nakilat’s Chief Executive Officer (CEO) 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.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20102020/nakilat-reports-robust-3q20-financial-results/