Doha, Qatar: Gulf International Services, yesterday reported a net profit of QR392m for the year ended 31 December2023, with an earnings per share of QR0.211.
The Group’s revenue for the year ended 31 December 2023 amounted to QR3.5bn, with an increase of 17% compared to last year. Revenue growth from aviation, drilling and insurance segments led to an overall increase in the Group revenue.
The Group reported an EBITDA of QR898m. Growth in the Group’s revenues coupled with increase in finance income contributed positively to the Group’s profitability. However, the group results were partially impacted by net monetary losses arising from the accounting impact of hyperinflation from GHC’s Turkish subsidiary. On the other hand, the Group’s direct costs increased by 19%, mainly linked to increased commercial activity.
Commenting on the Group’s strong financial and operational performance for the year ended 31 December 2023, Sheikh Khalid bin Khalifa Al Thani, GIS Chairman of the Board of Directors, said: “2023 has been an exceptional year for the Group, characterized by enhanced asset utilization, improved market penetration, and strategic realizations that have culminated in sustainable value creation. All our group companies have made substantial progress, delivering a robust set of results.
Throughout this year, we successfully executed several pivotal strategic initiatives, notably the merger of Amwaj with Shaqab and Atyab.
This strategic move is poised to enhance our Group’s operational efficiency and boost our competitiveness. Additionally, we achieved a significant milestone by successfully concluding the debt restructuring with our lenders. This achievement is a major step forward in our ongoing efforts to strengthen the company’s financial standing, offering greater flexibility, improved liquidity, and opening doors for strategic investments.
Moving forward, it is essential to remain vigilant to market trends, adapt to changes, and identify new avenues for growth. The successes of 2023 serve as a solid foundation upon which we can build for continued prosperity in the future.”
The Group’s finance cost increased by 14% to reach QR205m, as a result of persistently higher interest rates prior to the conclusion of the debt restructure with GDI lenders. However, the saving in finance costs is expected to be further realized in the upcoming quarters.
Moreover, performance of the insurance segment’s investment portfolio witnessed a recovery compared to the previous year, and an increase of QR55m was noted on account of investment income versus last year. From the initial public offering from February 2008 through 2022, the Group’s shareholders have received accumulated cash dividends of approximately QR2.8bn, reflecting an average payout ratio of approximately 52%. Additionally, shareholders have benefited from three bonus issuances, receiving a total of 63 million additional shares since the company’s inception.
Given a strong recovery in terms of the Group’s financial results achieved during the current year, the Board of Directors after taking into account, the operating, investing, and the financing needs of Group’s businesses is pleased to recommend a dividend distribution for the year ended 31 December 2023, equivalent to a pay-out of QR0.15 per share and equating to 15% of the par-value of the share capital of QR1 per share, subject to the approval of General Assembly.
GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters on Monday, 19 February 2024 at 1:30 p.m. Doha time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at GIS’ website.
