Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — H1 2017 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Aug 22, 2017
Slide 1: H1 2017 Financial Summary Conference Call
H1 2017 Financial Summary Conference Call August 22, 2017 Doha, Qatar 1
Slide 2: Interim Consolidated Income Statement – H1
Interim Consolidated Income Statement – H1 (All amounts in QR Millions) 2015 2016 2017 Operating Revenue 1,507 1,387 1,146 Salaries, Wages and Other Benefits (342) (325) (262) Revenue Down (17)% Operating Supplies and Expenses (467) (438) (456) Rent Expenses (8) (8) (7) Operating Profit Down (55
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 – H1
Net Profit, by Segment – H1 (All amounts in QR Millions) %’s shown vs 2016 -35% -39% -61% -275% -15% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – H1 2017
Statement of Income, by Segment – H1 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 391 239 194 162 276 - (116) 1,146 Salaries, Wages & Benefits (62) (79) (50) (8) (4) (60) - (262) Ope
Slide 6: Statement of Income, by Segment – H1 2016
Statement of Income, by Segment – H1 2016 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 512 292 237 185 259 - (99) 1,387 Salaries, Wages & Benefits (106) (93) (52) (10) (3) (61) 0 (325) Op
Slide 7: Segment Performance – Maritime & Logistics
Segment Performance – H1 (All amounts in QR Millions) 2015 2016 2017 24% Decline in Revenue and 61% Decline in Net Profit Operating Revenue 548 512 391 o Large Revenue drop due to change in P&L reporting for Port unit Salaries, Wages and Other Benefits (100) (106) (62) Operating Supplies and Expense
Slide 8: Segment Performance – Offshore
Segment Performance – H1 (All amounts in QR Millions) 2015 2016 2017 18% Decline in Revenue and 275% Decline in Net Profit Operating Revenue 331 292 239 o Diving and Construction & Maintenance Services revenue declined Salaries, Wages and Other Benefits (121) (93) (79) due to rate & utilization pres
Slide 9: Segment Performance – Gas & Petrochem
Segment Performance – H1 (All amounts in QR Millions) 2015 2016 2017 18% Decline in Revenue and 39% Decline in Net Profit Operating Revenue 152 237 194 o 1 Gas Carrier working spot jobs, and still looking for long term Salaries, Wages and Other Benefits (42) (52) (50) employment Operating Supplies a
Slide 10: Segment Performance – Trading
Segment Performance – H1 (All amounts in QR Millions) 2015 2016 2017 13% Decline in Revenue and 15% Decline in Net Profit Operating Revenue 244 185 162 o Large drop in sales of heavy equipment tied to infrastructure Salaries, Wages and Other Benefits (10) (10) (8) spending; related Cost of Goods Sol
Slide 11: Segment Performance – Capital
Segment Performance – H1 (All amounts in QR Millions) 2015 2016 2017 7% Increase in Revenue and 35% Decline in Net Profit Operating Revenue 343 259 276 Salaries, Wages and Other Benefits (5) (3) (4) o Increase in sales from Qatar Quarries associate; related Cost of Operating Supplies and Expenses (7
Slide 12: Outlook
Outlook Macro: Expect more TEU volumes through Hamad Port, due to land border closure Expect additional India routes PLUS Oman port callings (replacing Jebel Ali), to help stabilize Container Feedering unit margins Al Thumama warehouses due to open Q3/Q4 2017; anticipate gradual buildup of uti
Slide 13: Outlook
Outlook Macro: Global offshore marine market remains depressed. Focus remains on maximizing utilization and improving efficiency. 13
Slide 14: Outlook
Outlook VLGCs: charter rates remain depressed; 1 vessel came off long term charter end of 2016 and 1 in May 2017, with both re-chartered at lower rates; 2 come off charter 2018 Jointly & Fully owned LNG carriers: limited fluctuation versus 2016 due to long term fixed nature of contracts Fully-
Slide 15: Outlook
Outlook Expect a spotty and/or subdued rest-of-year 15
Slide 16: Outlook
Outlook Listed portfolio performance strongly correlated to Qatar Exchange performance and volatility Expect a slight uptick in Real Estate unit in H2 2017 as Al Thumama warehouses go-live 16
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