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
 Nov 26 2014 - Kuwait's Mabanee to invest USD910m on projectMENAFN
(MENAFN) Mabanee, the Kuwaiti real estate firm, announced it is planning to spend USD910 million on building the fourth phase of its development of The Avenues mall, Arabian Business reported.The ...

 Nov 26 2014 - Oman's Sezad, OOC sign MoU on Duqm refineryMENAFN
(MENAFN) The Special Economic Zone Authority of Duqm (Sezad) announced it has signed a Memorandum of Understanding with the Oman Oil Company (OOC) regarding construction work on the planned refinery ...

 Nov 26 2014 - Emirates Airlines adds new flight to Maldives routeMENAFN
(MENAFN) Dubai's Emirates Airline announced it has added a third daily service to Mal", the capital of the Maldives, which will begin servicing passengers on December 1, Arabian Business reported.The ...

 Nov 26 2014 - Abu Dhabi Int'l passenger traffic up 17 percent in OctoberMENAFN
(MENAFN) Abu Dhabi International Airport announced that it registered an increase by 17 percent in its passenger in October, Arabian Business reported.The airport said that it has registered a total ...

 Nov 26 2014 - Oman's Rolls-Royce sales grow 46 percent in Jan.-Oct.MENAFN
(MENAFN) Rolls-Royce Motors announced it has registered an increase in its sales in Oman by 46 percent during the January-October period, compared to the same period last year, Times of Oman ...

 Nov 26 2014 - GCC petrochemical industry to decline on falling oil pricesMENAFN
(MENAFN) Gulf countries' petrochemical industry is expected to begin facing challenges due to the falling of oil prices, US shale gas and China's polyethylene, Khaleej Times reported.These factors ...

 Nov 26 2014 - Syrian economy decline 40 percentMENAFN
(MENAFN) According to the Undersecretary General for Humanitarian Affairs and Emergency Relief Coordinator, Syria's economy has declined by almost 40 percent since 2011, due to the effects of the ...

 Nov 26 2014 - Qatar to invest USD43.62b on railways infrastructureMENAFN
Qatar's Ministry of Transportation announced it is currently working on the development of advanced transport infrastructure in the country, with several projects currently in the planning stages or ...

 Nov 26 2014 - Dubai's Kcal to expand to EgyptMENAFN
(MENAFN) Kcal, the Dubai-based restaurant chain announced it is planning to expand its business in the MENA region with its first store slated to open in Egypt by December this year, followed by 14 ...

 Nov 26 2014 - MENA's value of M&A deals hit USD9.3b in Q3MENAFN
(MENAFN) The Middle East and North Africa's (MENA) merger and acquisition activity increased by 17 percent during the July-September period of this year, with 109 deals announced compared with 93 ...

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