Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatar- GIS 2014 profit to top QR900m after buyout  Join our daily free Newsletter

MENAFN - The Peninsula - 29/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) With the Gulf Drilling International (GDI) becoming the wholly-owned subsidiary of Gulf International Services (GIS), after completing the acquisition of the 30 percent stake previously held by Japan Drilling Company (JDC), the GIS' future earnings are expected to grow exponentially.

Consolidated revenue and profit for the GIS group in 2014 is now projected to exceed QR3.5bn and QR900m respectively, while GDI is expected to contribute an incremental QR1.4bn of revenue and QR150m of net profit on account of the acquisition.

GIS, the largest service group in Qatar that announced the completion of the acquisition, yesterday noted the expected final cost to the group is around 160m, subject to the final audit of the accounts. With this, it will be the ending of the joint venture between the two companies that began 10 years ago, from April 30, 2014.

H E Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry and the Chairman and Managing Director of GIS, said that the JDC buyout was a well timed investment that is expected to yield significant results for the largest services group based in Qatar. "The fundamentals of this investment are particularly strong considering the substantial value received for the consideration paid, and with GDI's ambitious growth plans starting to take hold, GIS is well positioned to reap the benefits made possible by the successful joint venture with JDC," he said.

With GIS' share of GDI's results increasing from 70 percent to a 100 percent, Ebrahim Al Mannai, Chief Coordinator, GIS, said the future earnings of GIS are expected to grow exponentially and the company's shareholders are expected to gain from the transaction.

The consideration paid for JDC's 30 percent stake was derived pursuant to terms set forth in the joint venture agreement and is based on 30 percent of GDI's net book value as of April 30, 2014. The fair market value of this interest is estimated to be significantly above its net book value, with GDI's fleet being fully utilised under favourable multiyear contracts.

The transaction is being financed by an eight-year bilateral loan agreement secured through local banks on competitive terms, and repayable on a semi-annual basis starting from 2015.

Now established as a world class drilling contractor, GDI is a dynamic company that has world-class drilling contractor capabilities while diversifying into complimentary lines of business that include jack-up accommodation and lift-boat operations. As a result, substantial growth has been achieved in a short period of time with the size of GDI's fleet set to double from nine to eighteen in just three years with the arrival of 3 more units later this year.

 


The Peninsula




  MENA News Headlines
 Dec 21 2014 - Saudi- Muhammad Ali hospitalized with mild pneumoniaArab News
(MENAFN - Arab News) LOUISVILLE: Boxing legend Muhammad Ali was in stable condition after being hospitalized with a "mild" case of pneumonia his spokesman Bob Gunnell said.The 72-year-old Ali was ...

 Dec 21 2014 - Al-Naimi is 'confident' oil prices will improveArab News
(MENAFN - Arab News) ABU DHABI: Petroleum and Mineral Resources Minister Ali Al-Naimi said he was confident world prices would improve after a slide he blamed partly on 'lack of cooperation' by ...

 Dec 21 2014 - Irresponsible non-OPEC output behind oil price plunge: UAEArab News
(MENAFN - Arab News) ABU DHABI: "Irresponsible" levels of output by producers from outside the OPEC oil cartel is among the main causes of the slump in prices the UAE energy minister charged ...

 Dec 21 2014 - Gulf oil producers stand firm on OPEC outputAFP
(MENAFN - AFP) Oil-rich Arab Gulf countries stood firm against non-OPEC crude producers on Sunday, vowing they will not cut output nor hold an emergency cartel meeting to support slumping ...

 Dec 21 2014 - Saudi produces 74 percent of GCC polymer capacityMENAFN
(MENAFN) The National Petrochemical Industrial Co. (NATPET), a Saudi joint stock company, has revealed that 74 percent of the GCC's polymer capacity, totaling 17.6 million tons, was produced in the ...

 Dec 21 2014 - Algeria worried on falling oil pricesMENAFN
(MENAFN) Algeria, which oil revenues make up 97 percent of its hard currency earnings and 60 percent of the government's budget, is beginning to feel the impact of the fall in oil prices that led it ...

 Dec 21 2014 - UAE's non-oil trade hits USD142b in H1MENAFN
(MENAFN) The UAE's Federal Customs Authority (FCA) said that the value of direct total foreign non-oil trade has reached USD142.8 billion during the January-June period of 2014, Arabian Business ...

 Dec 21 2014 - UAE slams non-OPEC members on rising oil productionMENAFN
(MENAFN) The UAE's Ministry of Energy said that the decision made by the Organization of the Petroleum Countries (OPEC) not to cut production was correct despite the prices continuing with their drop ...

 Dec 21 2014 - Oman's OLC, Spanish CLH sign USD320m contractMENAFN
(MENAFN) Orpic Logistics Company (OLC), a joint venture between Oman Oil Refineries and Petroleum Industries (Orpic), announced it has signed an engineering, procurement and construction (EPC) ...

 Dec 21 2014 - UAE's Hakkasan acquires USD36m The Light GroupMENAFN
(MENAFN) Hakkasan Group, the hospitality and entertainment company owned by Abu Dhabi-based Tasameem Real Estate, announced it has acquired The Light Group from Morgans Hotel Group (MHG), Arabian ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help