Qatari maritime group Qatar Navigation (Milaha) Q.P.S.C. closed the first quarter of this year with a slight increase in its net income, driven by higher earnings of the company’s tanker and gas carrier business.
Milaha’s net profit rose by 1.8 per cent to QAR 283 million (around USD 78 million) in the first three months of 2020 from QAR 278 million seen in the corresponding period a year earlier.
On the other hand, operating profit dropped to QAR 200 million in Q1 2020 from QAR 216 million posted in Q1 2019.
Operating revenues stood at QAR 690 million in the three months ended March 31, 2020, compared to QAR 710 million recorded in the same period in 2019.
Performance of Milaha’s business units
During the first quarter of this year, Milaha’s five reportable segments delivered mixed results.
Milaha Maritime & Logistics’ net profit decreased by QAR 11 million to QAR 30.2 million in the first three months of this year. As explained, the decrease was mainly due to lower freight forwarding volumes and project work.
Additionally, Milaha Offshore’s bottom line decreased by QAR 60 million, with increased vessel impairments totaling QAR 74 million more than offsetting higher vessel utilizations. The unit suffered a net loss of QAR 77.7 million in Q1 2020, compared to a net loss of QAR 17.3 million seen in the same period last year.
On the other hand, Milaha Gas & Petrochem’s net profit grew by QAR 69 million, driven by improved market rates benefitting both the company’s wholly-owned assets as well as its joint ventures and associates. The segment’s net profit was QAR 150.5 million in Q1 2020, against QAR 81.1 million posted in Q1 2019.
Milaha Capital’s net profit also increased by QAR 5 million to QAR 182.8 million from QAR 176.8 million in Q1 2019. According to Milaha, the rise was mainly due to gain on sale of land which offset lower dividend and held for trading portfolio income.
Furthermore, Milaha Trading’s bottom line increased by about QAR 1 million due to improved operating margins in our bunker and trading agencies units. The company narrowed its net loss to QAR 2.3 million in Q1 2020 from QAR 3.1 reported in Q1 2019.