Qatar Navigation Qsc · QSE:QNNS

Qatar Navigation Qsc — Qatar Navigation (Milaha) — FY2019 Earnings Presentation

16 slides from Qatar Navigation Qsc's earnings presentation, Feb 27, 2020

  1. Slide 1: FY 2019 Financial Summary Conference Call

    FY 2019 Financial Summary Conference Call February 27, 2020 Doha, Qatar 1

  2. Slide 2: Consolidated Income Statement – Full Year

    Consolidated Income Statement – Full Year (All amounts in QR Millions) 2017 2018 2019 Operat ing Revenue 2,491 2,420 2,401 Salaries, Wages and Ot her Benef it s (576) (563) (588)  Revenue -0.8% Operat ing Supplies and Expenses (978) (941) (978) Rent Expenses (14) (15) (7)  Operat ing Prof it -30%

  3. Slide 3: Activities by Segment

    Activities by Segment • 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 • Warehousing & Services • Crude , Chemicals & • Strategic and

  4. Slide 4: Net Profit, by Segment

    Net Profit, by Segment – Full Year (All amounts in QR Millions) 229% %’s shown vs 2018 -24% 32% -4530% -19% Unfavorable Favorable 4

  5. Slide 5: Statement of Income, by Segment – Full Year 2019

    Statement of Income, by Segment – Full Year 2019 (All amounts in QR Millions) M arit ime & Gas & Eliminat ions/ Logist ics Offshore Pet rochem Trading Capit al Corporat e Adjust ment s Consolidat ed Operat ing Revenue 930 752 288 251 465 - (286) 2,401 Salaries, Wages & Benef it s (347) (71) (26) (16

  6. Slide 6: Statement of Income, by Segment – Full Year 2018

    Statement of Income, by Segment – Full Year 2018 (All amounts in QR Millions) M arit ime & Gas & Eliminat ions/ Logist ics Offshore Pet rochem Trading Capit al Corporat e Adjust ment s Consolidat ed Operat ing Revenue 904 666 299 297 517 - (264) 2,420 Salaries, Wages & Benef it s (323) (73) (26) (15

  7. Slide 7: Segment Performance – Maritime & Logistics

    Segment Performance – Full Year (All amounts in QR Millions) 3% Increase in Revenue and 32% increase in Net Profit 2018 2019 Operat ing Revenue 904 930 o Revenue increase coming from Logistics & Bulk Shipping units Salaries, Wages and Ot her Benef it s (323) (347) • Increase in Logistics driven by h

  8. Slide 8: Segment Performance – Offshore

    Segment Performance – Full Year (All amounts in QR Millions) 2018 2019 13% Increase in Revenue and 4530% decline in bottom line Operat ing Revenue 666 752 o Revenue increase mainly from Vessel Chartering Salaries, Wages and Ot her Benef it s (73) (71) • Average utilization increased from 78% in 2018

  9. Slide 9: Segment Performance – Gas & Petrochem

    Segment Performance – Full Year (All amounts in QR Millions) 2018 2019 3% Decline in Revenue and 229% Increase in Net Profit Operat ing Revenue 299 288 o Slight revenue drop Salaries, Wages and Ot her Benef it s (26) (26) o Higher tanker market rates drove up Tankers unit Operat ing Supplies and Exp

  10. Slide 10: Segment Performance – Trading

    Segment Performance – Full Year (All amounts in QR Millions) 2018 2019 15% Decline in Revenue and 19% decline in bottom line Operat ing Revenue 297 251 o Large drop in bunker and heavy equipment sales, with an associated drop in Salaries, Wages and Ot her Benef it s (15) (16) Operating Expenses Oper

  11. Slide 11: Segment Performance – Capital

    Segment Performance – Full Year (All amounts in QR Millions) 2018 2019 10% Decline in Revenue and 24% decline in Net Profit Operat ing Revenue 517 465 o QR (52)M decrease in Revenue mainly from Investments: Salaries, Wages and Ot her Benef it s (8) (7) Operat ing Supplies and Expenses (115) (128) •

  12. Slide 12: Outlook

    Outlook  Expect stable volumes at Hamad port, keeping QTerminals income relatively steady  Expect container shipping margins to moderately improve as a result of vessel network and cost optimizations underway  Ramp-up of utilization in Milaha Logistics City warehouses continuing 12

  13. Slide 13: Outlook

    Outlook  Offshore Support Vessels o Expect to see continued operational strengthening in 2020 on both the Vessel Chartering and Services side based on early sales pipeline indications  Harbor marine vessels o Expect stable revenue throughout the year 13

  14. Slide 14: Outlook

    Outlook  VLGCs: o charter rates well above same period last year. Cautiously optimistic about rest of year.  Jointly & Fully owned LNG carriers o fairly stable earnings due to long term fixed nature of contracts  2 Fully-owned product tankers + 1 crude carrier o all trading on spot and exposed to

  15. Slide 15: Outlook

    Outlook  Expect modest improvement as a result of internal initiatives and sales efforts. 15

  16. Slide 16: Outlook

    Outlook  Limited Investments volatility o Majority of Held for Trading Portfolio liquidated  Mixed results expected for Real Estate holdings o Existing properties to face pressure on rates o New villa compound construction in Ain Khaled complete, and awaiting imminent Civil Defense certification.

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