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
 Jul 30 2015 - Somalia president: No elections in 2016Saudi Press Agency
(MENAFN - Saudi Press Agency) Somalia's president is ruling out the possibility of holding elections that are due next year, citing security challenges stemming from an insurgency, AP ...

 Jul 30 2015 - Qatar transport sector witnesses double-digit profit expansion in H1Gulf Times
(MENAFN - Gulf Times) Qatar's transport sector witnessed a healthy double-digit expansion in profitability in the first half of this year, mainly on the back of earnings in logistics segment; ...

 Jul 30 2015 - Ooredoo posts QR1bn consolidated profit in H1Gulf Times
(MENAFN - Gulf Times) Robust earnings growth in the domestic market and Oman helped Ooredoo report a consolidated net profit of QR1bn in the first six months of this year.Ooredoo Qatar's net profit ...

 Jul 30 2015 - CI affirms Qatar's foreign, local currency ratings outlook stableGulf Times
(MENAFN - Gulf Times) Capital Intelligence (CI), the international credit rating agency, has affirmed Qatar's long-term foreign and local currency ratings of 'AA-' and short-term foreign and local ...

 Jul 30 2015 - London man 'flees to join IS in Syria'Gulf Times
(MENAFN - Gulf Times) A man from west London is feared to have left Britain to join Islamic State after lying to his parents that he was going on an IT course.The 22-year-old disappeared from his ...

 Jul 30 2015 - Dubai Investments profit down 58.6 percent in Q2MENAFN
(MENAFN) Dubai Investments suffered a 58.6 percent net profit drop in the second quarter of this year, attributed it to a one-off increase in the prior-year quarter.The corporation, in which ...

 Jul 30 2015 - UAE- DHA donates medicines worth AED 1.25 million to ERC.Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The Dubai Health Authority (DHA) has donated 25 cartons of medicines worth AED 1.25 million to Emirates Red Crescent (ERC).Humaid Mohammed Obaid Al Qatami, ...

 Jul 30 2015 - UAE envoy in Khartoum meets Sudanese MinisterEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Hamad Mohammed Humaid Al Junaibi, the UAE's Ambassador to Sudan, has met with the Sudanese Minister for Animal Resources and Fisheries, Mousa Teben Mousa ...

 Jul 30 2015 - Dubai International Airport traffic reaches 5.9 m passengers in JuneEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Dubai International received 5.9 million passengers in June according to the monthly traffic report issued by operator Dubai Airports today.Passenger traffic ...

 Jul 30 2015 - Saudi STC second-quarter profits down 8.7 percentMENAFN
(MENAFN) Saudi Telecom Co. (STC) announced logging a drop of its second-quarter profit of 8.7 percent, blaming rising costs which caused an extended profit slump.The firm made a net profit of USD683 ...

more...


 






Google

Click to Apply

 
 

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