Qatar Navigation (Milaha) has reported a net profit of QR711 million ($195 million) for 2016 compared to QR1.095 billion ($300 million) reported the previous year.

Announcing its financial results for the year ended December 31, 2016, Milaha said its operating profit hit QR555 million compared to QR855 million reported the previous year.

The company registered an operating revenue of QR2.551 billion compared to QR2.9 billion the previous year.

Earnings per share for the year ended December 31, 2016 was QR6.26, compared to QR9.63 reported the previous year.

Milaha said its maritime and logistics' unit posted a net profit of QR144 million for the year ended 2016 compared to QR264 million reported the previous year, mainly as a result of lower revenue from its port services unit, which was affected by a drop in storage and general/bulk cargo revenue, and rate pressure in the container shipping unit, which still managed to grow its market share and volumes.

The Qatari group's gas and petrochem unit saw a marginal drop in net profit hitting QR415 million for the year ended 2016 compared to QR457 million the previous year, mainly due to a slump in both tanker and gas carrier charter rates.

The decline was partially offset by the full year impact of increasing our ownership in two LNG carriers - Milaha Ras Laffan & Milaha Qatar - from 40 to 100 per cent in 2015.

Milaha Offshore recorded a net loss of QR115 million for the year ended 2016 compared to a net profit of QR93 million for the year ended 2015, with one time impairments amounting to QR161 million being the primary driver of the net loss.

Operationally, reduced exploration and production spending by both international and national oil companies contributed to a historically-depressed market environment, said the company in a statement.

Milaha Capital's net profit for the year ended 2016 inched up one per cent higher than the profit reported for year ended 2015, with both its Financial Investments as well as its Real Estate arms holding steady in a volatile year.

Milaha Trading's net profit was QR8 million for the year ended 2016 compared to QR24 million reported the previous year as a result of a significantly weaker market for commercial trucks and heavy equipment, which in turn was due to a slowdown in new construction projects in Qatar during 2016.

Commenting on the results, Sheikh Ali bin Jassim Al Thani, the chairman of Milaha's board of directors, said: "2016 was a profitable year for Milaha despite the challenging business environment. Our strong balance sheet and formidable asset portfolio will allow us to continue executing our long-term growth strategy and expanding our presence in Qatar and beyond."

The board of directors has decided to recommend to the General Assembly for distribution of a 35 per cent cash dividend, equivalent to QR3.5 per share.

Milaha's president and CEO Abdulrahman Essa Al Mannai said: "Despite the multiple macroeconomic and sector-specific challenges we faced in 2016, we achieved a net profit of QR711 million."

"Operationally, we had an even better year as we entered new markets, enhanced and increased our service offerings across several sectors, and added new assets to our portfolio," he added.-TradeArabia News Service