Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — YTD Sep 2018 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Nov 5, 2018
Slide 1: YTD Sep 2018 Financial Summary Conference Call
YTD Sep 2018 Financial Summary Conference Call November 5, 2018 Doha, Qatar 1
Slide 2: Interim Consolidated Income Statement – YTD Sep
Interim Consolidated Income Statement – YTD Sep (All amounts in QR Millions) 2016 2017 2018 Operating Revenue 1,990 1,656 1,810 Salaries, Wages and Other Benefits (487) (401) (421) Revenue Up 9% Operating Supplies and Expenses (616) (673) (689) Rent Expenses (12) (10) (12) Operating Profit Up 57
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 – YTD Sep
Net Profit, by Segment – YTD Sep (All amounts in QR Millions) 126% %’s shown vs 2017 -55% -64% -136% 78% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – YTD Sep 2018
Statement of Income, by Segment – YTD Sep 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 678 382 286 229 438 - (202) 1,810 Salaries, Wages & Benefits (101) (132) (79) (12) (6) (92) - (
Slide 6: Statement of Income, by Segment – YTD Sep 2017
Statement of Income, by Segment – YTD Sep 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 657 350 285 221 340 - (197) 1,656 Salaries, Wages & Benefits (95) (119) (75) (12) (6) (94) - (4
Slide 7: Segment Performance – YTD Sep (Maritime & Logistics)
Segment Performance – YTD Sep (All amounts in QR Millions) 2016 2017 2018 3% Increase in Revenue and 55% decline in Net Profit Operating Revenue 761 657 678 o Revenue increase driven by Logistics & Container Shipping units Salaries, Wages and Other Benefits (156) (95) (101) Operating Supplies and Ex
Slide 8: Segment Performance – YTD Sep (Offshore)
Segment Performance – YTD Sep (All amounts in QR Millions) 2016 2017 2018 9% Increase in Revenue and 78% Increase in bottom line Operating Revenue 438 350 382 o Revenue increase in Vessel Chartering Salaries, Wages and Other Benefits (139) (119) (132) • Average utilization increased from 65% in 2017
Slide 9: Segment Performance – YTD Sep (Gas & Petrochem)
Segment Performance – YTD Sep (All amounts in QR Millions) 2016 2017 2018 Negligible Increase in Revenue and 64% Decline in Net Profit Operating Revenue 350 285 286 o Depreciation & Amortization down QR 11M due to impact of past Salaries, Wages and Other Benefits (78) (75) (79) impairments Operating
Slide 10: Segment Performance – YTD Sep (Trading)
Segment Performance – YTD Sep (All amounts in QR Millions) 2016 2017 2018 4% Increase in Revenue and QR 8M Decline in Net Profit Operating Revenue 244 221 229 o Large drop in sales of heavy equipment offset by increase in Salaries, Wages and Other Benefits (15) (12) (12) Operating Supplies and Expen
Slide 11: Segment Performance – YTD Sep (Capital)
Segment Performance – YTD Sep (All amounts in QR Millions) 2016 2017 2018 29% Increase in Revenue and 126% Increase in Net Profit Operating Revenue 346 340 438 o QR 98M increase in Revenue broken out as follows: Salaries, Wages and Other Benefits (6) (6) (6) Operating Supplies and Expenses (79) (145
Slide 12: Outlook
Outlook Macro: ➢ Expect the year to close out strong at Hamad port with increased volumes ➢ 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 positively to the
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. ➢ Operationally, we expect to continue seeing year-over-year revenue increase as a result of: o Liftboat commencing work in Niger
Slide 14: Outlook
Outlook ➢ VLGCs: have started witnessing an uptick in charter rates; remain cautiously optimistic ➢ 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 t
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
Qatar Navigation (Milaha) — YTD Sep 2018 Earnings Presentation on 6ix