Doha, Qatar: Gulf International Services (“GIS” or “the Group”; QE ticker: GISS), yesterday reported a net profitof QR573m for the nine-month period ended 30 September 2024, marking a 38% increase compared to the same period last year, with an earnings per share of QR0.308.

Gulf International Services (GIS) reported an increase in revenue for the nine-month period ended 30 September 2024. This growth was primarily driven by the aviation, drilling and insurance segments. The key contributing factors to this increase included improved day rates and higher asset utilization in the drilling segment, increased flying hours in the aviation segment and enhanced premiums in the insurance segment, supported by major contract renewals.

The Group achieved strong financial performance for the nine-month period ended 30 September 2024, with uptick in both EBITDA and net profit results compared to the same period of last year. This success was driven by revenue growth and a reduction in finance costs, primarily due to debt restructure in the drilling segment. Even with additional debt from acquiring new Jackup Rigs, the Group effectively managed to lower its finance costs, highlighting its strategic financial management.

On overall basis, the Group’s 9M-24 financial performance is robust, with strong revenue and net profits growth as well as healthy margins.

Revenue for Q3-24increased compared to the previous quarter, primarily due to of better revenue reported from the drilling and insurance segments. Drilling segment benefited mainly from the full consolidation reporting of Gulf drill and Gulf Jackup following the transaction with Seadrill in addition to higher earned insurance premiums in Q3 compared to Q2 from the insurance segment.

Net profit for Q3-24 increased compared to the previous quarter. This growth was mainly driven by enhanced bottom-line profitability in the drilling segment due to higher revenues.

However, this was partially offset by reduced profitability in the aviation segment, resulting from decreased revenue, and lower profitability in the insurance segment due to increased net claims and re-insurance costs.

The Group maintained robust total assets and cash reserves, despite a decrease in total cash due to the 2023 dividend payment and partial cash injection for the Seadrill transaction.

The Group’s total debt increased as most of the Seadrill transaction was financed through additional loans.

The drilling segment reported a significant revenue growth for the nine-months ending 30 September 2024. This increase was mainly due to improved performance in the offshore rigs, lift boat and barge operation, supported by better day rates and higher asset utilization. Additionally, the recent acquisition of three Jack up rigs positively impacted revenue growth, as it allowed for the full consolidation of Gulfdrill and Gulf Jack up revenues.

The Aviation segment reported an increase in revenue for the nine-month period ended 30 September 2024, in comparison to the same period last year. This growth was primarily due to increased flying hours in both domestic and international segments.

The domestic segment also benefited from the redeployment of aircraft from international segment, which boosted fixed revenues. Meanwhile, international operations, particularly those driven by the Turkish subsidiary, witnessed growth due to increased flying hours and an expanded fleet size.

The insurance segment reported an increase in revenue for the nine-month period ended 30 September 2024 compared to the same period last year.

GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters on Tuesday, 5 November 2024 at 1:30 p.m. 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.

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