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Friday, April 26, 2024 11:0 GMT
Doha-based Gulf International Services (GIS) has reported a net profit of QR83 million (US$22.934 million) for the three-month period ended March 31, 2022. The Group’s revenue for the first quarter of the year reached QR835 million (US$230.729 million), an increase of 18% compared the same period last year. Revenue growth from the aviation, drilling and catering segments led to an overall increase in the Group revenue. This was partially offset by a negative contribution in revenue from the insurance segment. The growth in Group revenues led to the overall increase in net earnings. On the other hand, the Group’s direct costs increased by 7% mainly linked to inclined commercial activity.The Group’s total assets remained relatively flat during the year and stood at QR10.1 billion (US$2.791 billion) as at March 31, 2022, an increase of 2% comparing the previous quarter. Total debt at Group level amounted to QR4.3 billion (US$1.189 billion) as at March 31, 2022. Current levels of debt continue to weigh on the Group’s net earnings, as finance cost is one of the key cost ingredients, and specifically limits drilling segment’s ability to accomplish the required profitability. Group’s management is in continuous discussion with different key stakeholders to restructure the debt with an aim to provide greater flexibility to manage liquidity and ease pressure on the Group’s financial position.During the first quarter of 2022, the Drilling segment entered international markets with two new contracts for liftboats. New contracts were won in KSA and Maldives for liftboats, building international footprints for the segment, while enhancing asset utilisation. GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters today at 2:00pm Doha time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at GIS’ website.