Quotes: US 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.

 






  MENA News Headlines
 Jul 25 2014 - Gilas Last Home Stand that never wasArab News
(MENAFN - Arab News) E fiasco that happened on Tuesday night in what was supposed to be the first of two tune-up matches for Gilas Pilipinas against a crack NBA selection certainly left a bad taste ...

 Jul 25 2014 - Indian Tech Mahindra, Saudi Midad Holding sign dealMENAFN
(MENAFN) Indian IT giant Tech Mahindra Ltd has signed a joint venture with Midad Holding to expand its existence in Saudi Arabia, according to Arabian Business.The JV will be called Tech Mahindra ...

 Jul 25 2014 - Kuwait's Jazeera profit falls in H1MENAFN
(MENAFN) Rising fuels costs and forced rerouting of flights due to unrest in the Middle East affected the net profits of Kuwait's Jazeera Airways Group in the first half of 2014, according to Arabian ...

 Jul 25 2014 - Dubai's R&B launches two stores in SaudiMENAFN
(MENAFN) The Dubai-based giant Apparel Group's fashion arm R&B, most recognized for its exciting portfolio of international fashion and accessories brands, plans to open two stores in Dhahran and ...

 Jul 25 2014 - Adam Levine offers Knightley recording dealKhaleej Times
(MENAFN - Khaleej Times) Dam has just started a label called 222 Records and has been trying to persuade Keira to sign a deal with him the source added.Photo: AgenciesKeira Knightley has been ...

 Jul 25 2014 - Beyonce Jay Z started to go their separate waysKhaleej Times
(MENAFN - Khaleej Times) E source also added that the tour will be the last for Jay Z 44 and Beyonce 32 after marriage counsellors failed to help them get their relationship back on track.Photo: ...

 Jul 25 2014 - Casablanca piano up for sale in New York in NovemberKhaleej Times
(MENAFN - Khaleej Times) Lsons character Sam first played the song on the piano for Bogarts character Rick and Bergmans Ilsa when they fell in love in Paris as Nazi troops advanced on the French ...

 Jul 25 2014 - Im very old-fashioned: BhagyashreeKhaleej Times
(MENAFN - Khaleej Times) Ine Pyar Kiyas Bhagyashree indulges in a bit of nostalgia as she talks up her new TV series Supplied photoThe lovely and seemingly ageless Bhagyashree is probably best known ...

 Jul 25 2014 - Daily probiotics may regulate blood pressureKhaleej Times
(MENAFN - Khaleej Times) Ring the study researchers analysed results of nine high-quality studies examining blood pressure and probiotic consumption in 543 adults with normal and elevated blood ...

 Jul 25 2014 - Al-Athr showcases abstract and geometry inspired works of artArab News
(MENAFN - Arab News) Ddah's Al-Athr Gallery is hosting the abstract and geometry inspired work of 40 local and international artists until Oct. 10.The gallery opened its door in 2009 and has already ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help