GulfNav back in the black

May 02 2014

Gulf Navigation (GulfNav) has reported its first profit since 2011.

The company has announced profits of Dh539,000 for the first quarter of the year, compared with a Dh19.6 mill loss for 1Q13.

The rise in profits came despite a 19% fall in revenues to Dh30.9 mill for 1Q14 and were attributed to savings in operating and financing costs equivalent to Dh25.2 mill,compared with 1Q13.

The savings in operating and financing costs came as a result of the company selling its two VLCCs to DHT Holdings for $98 mill in February.

GulfNav’s crude tanker operations had badly affected the company’s balance sheet last year due to the dowqnturn in crude oil tanker tanker, which were partly responsible for a loan default last July.

In September and October, both vessels were arrested by creditors.

GulfNav has also confirmed that it was appealing a London arbitration award that went in favour of a Chinese shipbuilder over a 2011 contract to construct two product tankers.

The company has set aside about Dh229.2 mill for the award, which was announced in March.

It is also deciding whether to appeal against a second arbitration award, announced in January, that said it should pay $10.2 mill, plus costs and interest, to Nordic American Tankers.

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