During the 3rd quarter the Company registered a net loss of Dhs29.07 million compared to a net loss of Dhs15.31 million for the same period of 2010. The loss for the period was again significantly impacted by both operational costs and disposal effects of the PROBOS vessels (with the last vessel being sold on 30th August) causing a loss of Dhs12.06 million. In addition the current weak VLCC spot market coupled with high fuel costs impacted the earnings of the first VLCC vessel (Gulf Sheba) and regulatory dry-docking of the second VLCC vessel (Gulf Eyadah) resulted in 34 days of downtime in the quarter.
During the nine month period the Company has recorded a net loss of Dhs53.67 million compared to a net profit of Dhs8.29 million for the same period of 2010 (the 2010 profit for the nine month period included exceptional finance income of Dhs23.79 million related to the cancellation of construction of two vessels). Net Operating Revenue was Dhs154.68 million compared to Dhs219.60 million in the prior year. Operating profit for nine months before depreciation, finance costs and non-operating items was Dhs53.85 million compared to Dhs93.21 million in the same period last year.
Within the net loss for the nine month period of Dhs53.67 million, a total loss of Dhs42.33 million (79 per cent of the overall loss) was directly attributable to the PROBOS vessels, namely further impairment on the value of the vessels (Dhs5.99 million), associated costs relating to the disposal of these vessels (Dhs18.73 million) and operating losses in the nine months of Dhs17.61 million.
The Company’s total assets as of 30th September 2011 stood at Dhs2.525 billion compared to Dhs2.410 billion at December 31, 2010.
Gulf Navigation’s strategic plan calls for further expansion of the VLCC fleet (to 9 vessels – 18 million barrels) and the chemical tanker fleet (to 12 ships) as these are the sectors where we have an established presence and several, clearly identified avenues for profitable growth.
