DUBAI, UAE: Gulf Navigation Holding (GNH), the Dubai Financial Market listed maritime and shipping company, has announced its financial results for the first half of 2019.
During the first half of 2019 the Company achieved operating revenue of AED 85.7 million compared to AED 71.1 million during the same period of 2018, a YoY increase of 21%.
The Gulf Navigation Holding (GNH) reported net loss of AED 27.8 million in first half of 2019 compared to loss of AED 14.8 million during the same period last year.
During the first half, one of the company’s petrochemical tankers had an extended dry dock for the mandatory special survey work, which impacted the revenue and led to additional costs in the first half.
GNH also incurred increased depreciation and finance costs on account of acquisitions in Q4 2018 and amortisation of the special survey drydock that was carried out on its Chemical Tankers, which impacted the net profit. Previous year first half loss also included the write-back of AED 8.7mn of liabilities, which positive impacted last year’s first half results.
Considering maritime industry’s strategic importance to the UAE and to align the Company to anticipated maritime law changes next year, the board of GNH discussed its current foreign ownership limit cap of 49%.
Subject to compliance with the new regulation and the approval of the competent authorities, the board proposed to allow 100% foreign ownership in the Company, and authorized management to seek relevant approvals from the authorities to implement the change.
Chairman of the board Saeed Mubarak Al Hajeri commented: “We continue to work on the turnaround for GNH. The board has approved refinancing of certain liabilities, which we expect to improve the cash flow situation and clear long outstanding issues. Furthermore, we are preparing for the upcoming IMO 2020 regulations with the installation of scrubbers and completion of special survey this year.”