Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — Q1 2018 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, May 3, 2018
Slide 1: Q1 2018 Financial Summary Conference Call
Q1 2018 Financial Summary Conference Call May 3, 2018 Doha, Qatar 1
Slide 2: Interim Consolidated Income Statement – Q1
Interim Consolidated Income Statement – Q1 (All amounts in QR Millions) 2016 2017 2018 Operating Revenue 767 648 698 Salaries, Wages and Other Benefits (159) (129) (137) Revenue Up 8% Operating Supplies and Expenses (233) (206) (226) Rent Expenses (4) (4) (5) Operating Profit Up 10% Depreciation
Slide 3: Activities by Segment
Activities by Segment Maritime & Gas & Offshore Trading Capital Logistics Petrochem • Port Services • Vessel Charter & • LNG Transport • Heavy Equipment • Real Estate Operations and Truck Agency Development and • Container Shipping • LPG Transport Management • Diving & Subsea • Bunker Distribution •
Slide 4: Net Profit, by Segment – Q1
Net Profit, by Segment – Q1 (All amounts in QR Millions) 48% %’s shown vs 2017 -62% 118% -97% -195% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – Q1 2018
Statement of Income, by Segment – Q1 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 256 106 96 79 255 - (94) 698 Salaries, Wages and Other Benefits (33) (39) (26) (4) (2) (32) - (137)
Slide 6: Statement of Income, by Segment – Q1 2017
Statement of Income, by Segment – Q1 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 191 135 101 67 210 - (56) 648 Salaries, Wages and Other Benefits (30) (42) (24) (4) (2) (27) - (129)
Slide 7: Segment Performance – Maritime & Logistics
Segment Performance – Q1 (All amounts in QR Millions) 2016 2017 2018 34% Increase in Revenue and 118% Increase in Net Profit Operating Revenue 251 191 256 o Revenue increase driven by Container Shipping & Logistics units Salaries, Wages and Other Benefits (54) (30) (33) • Container Shipping volumes
Slide 8: Segment Performance – Offshore
Segment Performance – Q1 (All amounts in QR Millions) 2016 2017 2018 21% Decline in Revenue and 97% Decline in bottom line Operating Revenue 145 135 106 o Revenue decline in both Vessel Chartering and Services mainly due Salaries, Wages and Other Benefits (46) (42) (39) to rate discounts applied in
Slide 9: Segment Performance – Gas & Petrochem
Segment Performance – Q1 (All amounts in QR Millions) 2016 2017 2018 5% Decline in Revenue and 62% Decline in Net Profit Operating Revenue 121 101 96 o Revenue decline coming mainly from owned/partnered Tankers due Salaries, Wages and Other Benefits (26) (24) (26) to reduced shipping rates Operating
Slide 10: Segment Performance – Trading
Segment Performance – Q1 (All amounts in QR Millions) 2016 2017 2018 17% Increase in Revenue and QR 2M Decline in Net Profit Operating Revenue 100 67 79 o Revenue increase from higher bunker sales, which more than offset Salaries, Wages and Other Benefits (5) (4) (4) drop in sales of heavy equipment
Slide 11: Segment Performance – Capital
Segment Performance – Q1 (All amounts in QR Millions) 2016 2017 2018 21% Increase in Revenue and 48% Increase in Net Profit Operating Revenue 191 210 255 Salaries, Wages and Other Benefits (1) (2) (2) o QR 45M increase in Revenue mainly driven by: Operating Supplies and Expenses (29) (44) (39) Rent
Slide 12: Outlook
Outlook Macro: Expect to see the full year impact of higher volumes seen at Hamad port in H2 2017 Expect container feedering margins to be under pressure due to increases in the cost of bunker and competitive rate pressure Ramp-up of utilization at Al Thumama warehouses will contribute positiv
Slide 13: Outlook
Outlook Macro: Expect the fundamentals in the offshore market to gradually improve on the back of higher oil prices, declining OSV fleet supply and rising oil production. 13
Slide 14: Outlook
Outlook VLGCs: charter rates remain depressed; expect remainder of 2018 to be challenging Jointly & Fully owned LNG carriers: limited fluctuation versus 2017 due to long term fixed nature of contracts Fully-owned product tankers + 1 crude carrier: all trading in spot market and exposed to mult
Slide 15: Outlook
Outlook Expect a challenging year for this segment rest of year 2018 15
Slide 16: Outlook
Outlook Listed portfolio performance strongly correlated to Qatar Exchange performance and volatility 16
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