Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — H1 2019 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Jul 30, 2019
Slide 1: H1 2019 Financial Summary Conference Call
H1 2019 Financial Summary Conference Call July 30, 2019 Doha, Qatar 1
Slide 2: Consolidated Income Statement – H1
Consolidated Income Statement – H1 (All amounts in QR Millions) 2017 2018 2019 Operating Revenue 1,146 1,254 1,258 Salaries, Wages and Other Benefits (262) (270) (292) Revenue 0.3% Operating Supplies and Expenses (456) (464) (480) Rent Expenses (7) (8) (5) Operating Profit -11% Depreciation and
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
Slide 4: Net Profit, by Segment
Net Profit, by Segment – H1 (All amounts in QR Millions) %’s shown vs 2018 -23% 13,943% -1% -680% -288% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – H1 2019
Statement of Income, by Segment – H1 2019 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 459 366 140 140 308 - (155) 1,258 Salaries, Wages & Benefits (174) (33) (13) (8) (3) (61) - (292) Op
Slide 6: Statement of Income, by Segment – H1 2018
Statement of Income, by Segment – H1 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 473 268 145 149 356 - (137) 1,254 Salaries, Wages & Benefits (153) (33) (13) (8) (4) (60) - (270) Op
Slide 7: Segment Performance
Segment Performance – H1 (All amounts in QR Millions) 2018 2019 3% Decline in Revenue and 1% decline in Net Profit Operating Revenue 473 459 o Revenue drop driven by Container, Port and Shipyard units Salaries, Wages and Other Benefits (153) (174) • Drop in Container Shipping attributable to reducti
Slide 8: Segment Performance
Segment Performance – H1 (All amounts in QR Millions) 2018 2019 37% Increase in Revenue and 288% decline in bottom line Operating Revenue 268 366 o Revenue increase mainly from Vessel Chartering Salaries, Wages and Other Benefits (33) (33) • Average utilization increased from 71% in 2018 to 78% in 2
Slide 9: Segment Performance
Segment Performance – H1 (All amounts in QR Millions) 2018 2019 3% Decline in Revenue and +1000% Increase in Net Profit Operating Revenue 145 140 o Slight revenue drop Salaries, Wages and Other Benefits (13) (13) Operating Supplies and Expenses (11) (9) o Higher tanker market rates drove up Tankers
Slide 10: Segment Performance
Segment Performance – H1 (All amounts in QR Millions) 2018 2019 6% Decline in Revenue and 680% decline in bottom line Operating Revenue 149 140 o Large drop in bunker sales, partially offset by increased sales of Salaries, Wages and Other Benefits (8) (8) heavy equipment Operating Supplies and Expen
Slide 11: Segment Performance
Segment Performance – H1 (All amounts in QR Millions) 2018 2019 14% Decline in Revenue and 23% decline in Net Profit Operating Revenue 356 308 o QR (49)M decrease in Revenue mainly from Investments: Salaries, Wages and Other Benefits (4) (3) Operating Supplies and Expenses (58) (65) • QR (24)M decre
Slide 12: Outlook
Outlook ➢ Expect limited volume volatility at Hamad port, keeping QTerminals income relatively steady ➢ Expect container feeder margins to remain under pressure as geographic network footprint expands; realized benefits will lag costs incurred ➢ Ramp-up of utilization in Milaha Logistics City wareho
Slide 13: Outlook
Outlook ➢ Offshore Support Vessels: we expect to see year-over-year revenue and operating profit growth as a result of: o Full year impact from Liftboat which is employed in W Africa (began end of June 2018) o Commencement of new projects that began in H2 2018 ➢ Harbor marine vessels: expect stable
Slide 14: Outlook
Outlook ➢ VLGCs: charter rates improved substantially in Q2. Cautiously optimistic about rest of year. ➢ Jointly & Fully owned LNG carriers: fairly stable earnings due to long term fixed nature of contracts ➢ Fully-owned product tankers + 1 crude carrier: all trading on spot and exposed to market vo
Slide 15: Outlook
Outlook ➢ Expect challenging outlook for this segment rest of year. 15
Slide 16: Outlook
Outlook ➢ Limited Investments volatility: o Majority of Held for Trading Portfolio liquidated and used to acquire additional 6% Nakilat stake Feb 2019 ➢ Given diverse nature of Real Estate holdings, expect stable returns o Villa compound in Ein Khaled on track to open Q3 2019 16
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