Dubai-based Gulf Navigation Holding has reported a gross profit of Dh10.15 million ($2.78 million) in the first quarter (Q1) of 2018, a 5 per cent increase in comparison to the first quarter of 2017.

This announcement comes consequently with the company’s successful completion of the requirements needed to make the Gulf Navigation compliant with the Islamic Sharia laws listed in the Dubai Financial Market, said a statement.

The increase in gross profit reflects the company’s exceptional efforts to maintain its constant growth in various fields, mainly the company’s success to increase its assets by adding “Gulf Mishref” and “Gulf Mirdif” vessels to its fleet, it said.

This expansion has positively affected the company’s assets with an increase of 12 per cent during 2017, in addition to an increase of 28 per cent in gross revenues that reached Dh37.7 million ($10.26 million) in the first quarter of 2018, compared to Dh29.4 million ($8.004 million) during the first quarter last year.

Moreover, the increase in revenues was accompanied by an increase in the operating expenses reaching Dh27.5 million ($7.48 million) during the same period compared to Dh19.7 million ($5.36 million) in the first quarter of 2017, it added.
    
The successful acquiring of the two petrochemical carriers to “Gulf Navigation Holding” fleet is significant to enhance the company’s petrochemical transportation capabilities. The company aims at expanding its fleet to reach to 20 multipurpose vessels by the second quarter of 2020, said a statement.

The increase in oil prices during 2017 has created more opportunities for the company, especially with the increase of petroleum derivatives production in the Gulf region, as part of its strategy to overcome the decline in crude oil prices two years ago. This has contributed to increasing the company’s demand on petroleum products and petrochemicals transportation.

On another hand, the company is currently handling ongoing discussions to increase its market share in the US oil market that is witnessing remarkable growth.

Khamis Juma Buamim, board member, managing director and group CEO of Gulf Navigation Holding, said: “Diversifying our group’s income resources through various operational sectors in addition to the initial improvement in the shipping sector make us optimistic and confident about our operational and financial results in 2018.”

“Furthermore, we have managed to become a ‘one-stop shop’ for the marine services sector. This has contributed to increasing our revenues generated by our main activity of transporting petrochemicals and petroleum derivatives,” he said.

Buamim continued: “While the industry is facing major challenges which have negatively affected several companies and caused an increase in business costs and fees, we have focused on communicating with the leading companies in the Gulf region and the US as they are the major players in filtering and refining operations.”

“Moreover, we have been able to obtain many opportunities that are currently under discussions and we are expecting more revenues coming from this market, especially with the focus on increasing petrochemical derivatives production and oil refining capabilities in both regions,” he added.

Moreover, the company’s capabilities are improving and reinforced by a significant improvement in performance after the restructuring process that focused on adding a number of the leading and award winning companies in the maritime sector worldwide, as well as the strategic partnerships that the company has established in 2017.

Furthermore, aiming at providing the maritime sector with qualified and experienced cadres, the company has successfully launched the "Young Arab Cadet Program" that aims at training and qualifying Arab and National cadres in the maritime field to operate in the high seas and to enable them to lead giant vessels.

Through this programme, the company has successfully recruited five engineers and marine officers as per the agreement with the Jordan Academy for Maritime Studies.

Buamim confirmed that the company seeks to train Arab captains and engineers on board of their ships, in order to qualify them with the global capabilities in the maritime sector, it stated. – TradeArabia News Service