Dubai maritime and shipping company Gulf Navigation swung to a profit in 2021, driven by lower operating and finance costs as the UAE’s economy continues to recover from the coronavirus-induced slowdown.
Net profit attributable to owners of the company for the full year reached Dh60.77 million ($16.54m), compared with a loss of Dh284.4m in 2020, the company said in a statement on Friday to the Dubai Financial Market, where its shares are traded.
Operating costs slid 31.5 per cent annually to Dh98m and finance costs declined 13 per cent to Dh40.4m.
“Despite the continuing challenges resulting from the Covid-19 pandemic regionally, Gulf Navigation was able to achieve remarkable growth in various areas of its business, driven essentially by the support of the UAE government and its efforts to lift the economy and help it recover, which, in turn, enabled us to achieve such results,” chairman Sheikh Theyab bin Tahnoon said.
The UAE introduced economic stimulus worth Dh388 billion to offset the impact of the pandemic that tipped the world economy into its worst recession since the 1930s.
That includes the central bank's Dh50bn Targeted Economic Support Scheme (Tess) to boost liquidity in the financial and banking sector, as well as other support measures.
Gulf Navigation's management restructured its debt last year, which “reflected positively on the company’s results by benefitting from the reduction of debt provisions”, the company said.
Loans worth more than Dh300m were restructured and refinanced under “new and flexible terms” to support the company's financial and operational performance for the coming years.
“The company's success in the debt-restructuring process reflects the banks' confidence in the company's assets and its management that is determined to continue on the path of corrective approach,” Sheikh Theyab said.
“The focus during the next few years will be on enhancing revenue and improving profit margins through effective fleet management, stabilising the performance of the vessels and chartering them to reliable customers on a long-term basis, which will pave the way for the company to expand, grow and increase its maritime fleet.”
Gulf Navigation's fleet includes petrochemical tankers, livestock transport ships and marine support vessels that allow it to serve different markets.
The company is considering new investments in the UAE and other countries in the GCC region in the field of petrochemicals and dry bulk carriers to boost growth this year.
