Qatar: Gulf International Services reports net profit of $98mln in H1 2024

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Doha: Gulf International Services (“GIS” or “the Group”; QE ticker: GISS), yesterday reported a net profit of QR356m for the six-month period ended 30 June 2024, representing an incline of 27% compared to H1 2023.

The drilling segment has made significant progress in strengthening its financial stability through strategic initiatives focused on enhancing profitability and optimizing operations for greater efficiency.

The recent restructuring of the loan with a longer tenor and competitive rate, along with the acquisition of the three jack-up rigs, positions GDI as the largest Qatari drilling service provider.

Regarding updates on the overall fleet and contract status, the company secured a four-year contract extension for certain onshore rigs that were set to expire this year.

However, another onshore rig completed its contract during Q2 2024 and is currently off-contract. One of the lift boats was awarded a new three-year contract at the end of the first quarter of this year, with an improved day rate compared to its previous day rates, which will positively impact the company’s revenue.

GDI currently holds the majority market share in the Qatari offshore market, with a total of 12 operating rigs. The company will continue pursuing various strategies to expand its market share and drive sustained growth.

During the first half of 2024, GHC experienced an increase in demand for helicopters supporting offshore oil and gas services in both domestic and international markets.

The segment continued to experience enhanced business performance, attributed to increased flying hours within both domestic and international operations.

In line with its fleet upgrade strategy and as previously announced, GHC signed an aircraft acquisition contract with a reputable supplier to supply five helicopters, with an option to add an additional five aircrafts. The first four helicopters are expected to be delivered in the second half of this year.

Al-Koot, a leader in Qatar’s medical insurance sector, demonstrated strong performance in the first half of 2024 by successfully renewing major contracts and in its general line of business, Al-Koot maintains its leadership in the local energy insurance market, offering the largest capacity for mega-energy risk in Qatar while also covering non-energy risk.

Throughout the year, Al-Koot renewed major clients and its international portfolio by acquiring new clients in the first half of 2024. Additionally, Al Koot launched its motor business in Q2 2024, with ongoing efforts to capture market share and grow this segment. Al-Koot consistently upholds its strong financial strength and issuer credit rating of ‘A-’ with stable outlook from S&P ratings.

For the six-month period ended 30 June 2024, the Group reported a revenue of QR2.1bn, an increase of 9% compared to the same period of last year. This growth was driven by improved revenue in all segments except catering, leading to enhanced Group revenue.

GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters on Tuesday, 20th August 2024, at 1:30 p.m. Doha time. The IR presentation accompanying the conference call will be posted on the ‘financial information’ page within the GIS website Investor Relations section.