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DOHA: Gulf International Services (GIS) or the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation and catering services, announced its results for the nine months ended September 30, 2012, with revenue of QR1.488bn and net profit of QR318.2m.
The Group’s revenue for the nine months grew 38.3 percent or QR412.1m compared with the same period of last year, while the third quarter recorded revenue of QR601.6m, an increase of QR116.2m, or 23.9 percent, compared to the second quarter.
Net profit for the first nine months of 2012 was QR318.2m, representing a year-on-year increase of QR131.2m, or 70.1 percent, while profit for the third quarter improved by QR17.3m, or 16.6 percent, to close at QR121.8m. The year-on-year improvement was driven by improved results in all segments, and the addition of Amwaj since June 1, 2012.
In a statement to the Qatar Exchange, Ebrahim Al-Mannai, Chief Coordinator, Gulf International Services, declared: “The excellent third quarter results were a continuation of the group’s strong first half performance. In this quarter, the group recorded its highest ever quarterly revenue — QR601.6m — and its strongest quarterly net profit in over two years — QR121.8m”.
“Year-to-date, revenue improved versus the same period of 2011 by over 38.3 percent as the group registered its best revenue for a nine-month period at QR1.5bn. Net profit similarly impressed, improving year-on-year by an exceptional 70 percent with all segments contributing positively.”
The group’s insurance subsidiary registered its highest ever revenue for the first nine months of the year, with premiums and net commission income of QR439.5m, a commendable QR52.1m, or 13.4 percent, improvement on the same period of 2011.
Aviation segmental revenue for the first nine months of the year was QR369.8m, representing an increase of QR37.3m, or 11.2 percent, on the same period of 2011, due to a number of factors. Most important of these was a general increase in flying hours, the commencement of new operations within the GCC, the launch of the flight simulator and pilot training facility in Doha in the second quarter of 2012, and the resumption of normal operations in Libya.
The group’s share of revenue from the Drilling segment closed the period ending September 30, 2012 at QR455.2m, a notable year-on-year increase of QR98.6m or 27.7 percent.
Profit in the Insurance segment significantly improved due to a number of factors, including growth in net premiums, improved margins, higher management fees from Qatar Petroleum’s group life fund, gains from structured and fixed income instruments (QR16.1m), and weak 2011 comparatives.
The year-on-year positive profit variance in the drilling segment can be largely attributed to stable drilling operations in 2012, in contrast to the early part of 2011 where the business was disrupted by extended contractual start-up delays of 139 days resulting in the incurring of significant unrecoverable overheads that dampened margins.
Profits in the aviation segment, the major contributor to group earnings, increased by QR23.8m to reach QR140.9m. This year-on-year performance was aided by strong headline growth, improved available for sale investment closing values and weak prior year comparatives.