Doha, Qatar: Gulf International Services (“GIS” or “the Group”; QE ticker: GISS), yesterday reported a net profit of QR415m for the nine-month period ended 30 September 2023, with an earnings per share of QR0.223.
The Group’s revenue for the nine-month period ended 30 September 2023 amounted to QR2.6bn, with an increase of 18% compared to the same period of last year.
Revenue growth from the aviation, drilling and insurance segments led to an overall increase in the Group revenue. Catering revenue of QR312m is presented separately as part of discontinued operations as per IFRS 5 requirements.
The Group reported an EBITDA of QR803m and recorded a net profit of QR415m for the nine-month period ended 30 September 2023.
Growth in the Group’s revenues coupled with increase in finance income and hyperinflationary accounting in one of the overseas operations led to an overall increase in net earnings. On the other hand, the Group’s direct costs increased by 7%, mainly linked to increased commercial activity.
9M-23 Group’s finance cost significantly increased by 34% to reach QR163m, as a result of persistently higher interest rates.
However, further, to concluding the refinancing deal, the third quarter of this year witnessed a decline in finance costs compared to the previous quarter. Overall, the Group’s 9M-23 financial performance is resilient, with strong revenue growth and healthy margins.
Revenue for Q3-23 increased by 5% compared to Q2-23, mainly on account of better revenue reported from the aviation segment due to growth in the domestic, international and MRO segments.
The insurance segment also contributed positively to the quarterly revenue growth supported by new contracts added during the quarter. Growth in revenue was slightly offset by negative movement in the topline from the drilling segment due to planned
maintenance for 2 offshore rigs. The Group total assets increased by 6% during the current reporting period compared to last year and stood at QR10.3bn as of 30 September 2023.
Cash and short-term investments stood at QR1.2bn, up by 7% compared to 31 December 2022. Total debt at the Group level amounted to QR4.38bn as of 30 September 2023.
The drilling segment reported a revenue of QR978m for the nine-month period ended 30 September 2023, up by 3% compared to the same period of last year. The revenue growth was mainly driven by higher asset utilization from the onshore segment due to deployment of GDI 8 which was off contract during the previous year.
This was partially offset by lower revenue from the lift boat and barges segment due to lift-boat going off-contract during the previous quarter.
The aviation segment achieved a total revenue of QR799m for the nine-month period ended 30 September 2023, marking a notable 16% growth compared to the corresponding period in the prior year.
This increase can be primarily attributed to heightened flying activity witnessed within both domestic and international operations, coupled with robust revenue expansion across the Maintenance, Repair, and Overhaul (MRO) business was as well as the growth in revenue in international locations, notably Turkey and Angola.
GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters on Tuesday, 31st Oct 2023 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.
