(MENAFN- The Peninsula) Gulf International Services (GIS), the largest service group in Qatar with interests in a broad cross-section of industries, delivered strong revenue and net profit for the first half of 2014 (H1, 14). Driven mainly by the drilling segment, the group's net profit for first six months ended June 30, 2104 rose by 58.2 percent to QR0.5bn compared to a year ago.
The group revenue for H1,14 recorded QR1.59bn, representing a significant increase of QR477.1m, or 42.5 percent up year-on-year.
H E Dr Mohamed bin Saleh Al Sada (pictured), the minister of energy and industry, Chairman and Managing Director of GIS, stated in a filing to Qatar Exchange: "The group closed the first six months with its highest-ever first half results: revenue of QR1,595.3m and net profit of QR463.7m, increases of 42.5 percent and 58.2 percent on the prior year respectively. These record results can be mainly attributed to the ambitious growth plans in all segments, but most notably within the drilling segment where significant progress was made towards completing that segment's medium-term business expansion strategy."
On the performance of the group's drilling segment, Ebrahim Al Mannai, Chief Coordinator, GIS said: "Significant achievements were noted during the second quarter of 2014 in three critical areas - increasing GIS' ownership interest in GDI, business development initiatives and extensions for expiring onshore drilling contracts. With regards to increasing the group's equity interest in GDI, GIS completed the buyout of Japan Drilling Company Ltd's 30 percent shareholding in Gulf Drilling International for a total consideration of $157.7m, resulting in GDI becoming a 100 percent subsidiary of GIS with effect from May 1, 2014. The buyout contributed an additional profit of QR40m for two months period ended June 30.
"Secondly, progress was made by the subsidiary with respect to several business development opportunities: of the three assets expected to be placed into operation during the current year the first, a conventional jack-up rig, Msheireb, was accepted by Occidental Petroleum and commenced operations in May, 2014. The second, a new accommodation lift-boat, Rumailah, has recently been received and will be utilised by Maersk Oil Qatar following its delivery to them in July, 2014. The third asset, a high specification jack-up rig, Dukhan, is still under construction in Singapore and is on schedule to be utilised by Qatar Petroleum upon its expected delivery to them in the fourth quarter."
With these new assets, GDI expects to have a total of twenty-one assets under operation by mid-2016, up from nine at the beginning of 2012. At that point, GDI's fleet is projected to be comprised of ten offshore rigs, eight onshore rigs, two lift-boats and one accommodation barge.
Elaborating on the Aviation Segment, Al Mannai said the Gulf Helicopters recently placed firm orders for 15 AW-189 helicopters - AgustaWestland's latest generation aircraft. Subject to prevailing market conditions, it is expected that 11 aircraft will be deployed in the next 5 years to bring the total count to 54, with the first 2 helicopters expected to be delivered in the third quarter of 2014.
Revenue in the Drilling segment closed the first half of 2014 at QR697.6m, a remarkable year-on-year increase of QR 316.5m, or 83 percent. Aviation segmental revenue increased by a moderate QR11.7m, or 3.8 percent, to total QR320.0m.
The group's insurance subsidiary registered gross insurance revenue of QR381.1m, a resolute QR44.3m, or 13.2 percent, improvement on the same period of 2013.
The main contributor to this growth was the medical line of business, as an additional 8,000 members joined the Al Koot Global Care Medical Insurance Scheme versus the first half of 2013.
Amwaj Catering Services Ltd contributed QR548.7m to group revenue, representing the largest segment at 34 percent of group revenue. Compared to last year, the segment improved by QR74.3m, or 15.7 percent, due to the expansion of the core industrial catering and manpower contracting services to a number of projects throughout Qatar.
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