Qatar- GIS plans to invest QR1.9bn in 5 years

Date

3/3/2016 1:21:06 PM

(MENAFN- The Peninsula) Officials at the 8th Annual General Assembly Meeting.

By Sachin Kumar

DOHA: Gulf International Services (GIS) is planning to invest around QR1.9bn over the next five years. These investments will generate additional revenue for the company.

“Despite the current muted economic environment GIS is embarking a selective capital expenditure programmes together with suitable business development opportunities. GIS believes that continued investment in operating assets are essential to remain competitive in business and will continue to invest when the right opportunity becomes available” said Khaled bin Khalifa Al Thani Chairman of the Board of Directors GIS while speaking at the 8th Annual General Assembly Meeting held. “With the total capex of QR4.3bn since its inception in 2008 to-date the group expects to further invest QR1.9bn over the next five years. These investments are expected to generate additional revenue. I believe these investments will further strengthen the group’s competitive position as the premier service provider in the region” he added.

The Board recommended a dividend distribution for the year ended December 31 2015 equivalent to a payout of QR1 per share and representing 23.2 percent of the group’s net profit.

He said that financial year 2015 was expected to be challenging for a number of reasons including the consequences of QP’s procurement mechanism and its impact on some group companies together with unfavourable economic environment driven by a significant fall in the crude oil prices due to which the group companies within GIS had to inculcate new thinking new way of working to stay ahead of uncertain economic environment and the competition while maintaining the costs at the lowest.

“The group therefore embarked on a number of cost improvement and optimisation programmes those supported and will continue to support the group’s performance during the current and future turbulent economic period” said the chairman. “I can assure you that together with my fellow Board of Directors we will put our whole hearted effort in ensuring that GIS will continue to be the flag ship service provider especially in oil and gas field within the region and continue to add value. I am confident that we together with the senior management of the group companies develop sustainable long-term strategies and business development programs to overcome all the obstacles currently faced due to the unfavorable market conditions” he added.

He said that results were significantly impacted due to the year-on-year reduction in profits of the group’s subsidiaries namely Gulf Drilling International and Gulf Helicopters Company.

The Peninsula

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