Liability write-offs help GulfNav to profit

Feb 17 2017

Gulf Navigation has announced its best annual results for eight years.

This was due to an improvement in spot tanker rates and the reclassification of its liabilities.

The Dubai shipping company said that profit for the year rose to Dh136.7 mill, compared with Dh20.2 mill in 2015. Profit for the fourth quarter was reported as Dh5.4 mill, compared with Dh4.5 mill in 4Q15.

Much of the increase in annual profit was down to a Dh107.8 mill in liabilities the company described as written off, including a de-recognition of Dh90.6 mill worth of liabilities during the year.

Operating revenue fell by 4% to Dh129.5 mill, owing to a drop in vessel revenues.

"Further improvement in chemical tanker spot rates specifically contributed to increased margins along with further rationalisation of our cost structure, which led to lower fin­ance and overhead costs," said Khamis Buamim, Gulf Navigation’s group CEO. "We have also achieved giant strides in resolving a number of legacy issues, which we expect to be fully resolved in the coming period."


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