Gulf Navigation has restated its annual results for 2013 after a recent London arbitration award against it, resulting in a 33 per cent increase in the company’s annual losses.
The Dubai-based company yesterday announced losses of Dh927.6 million for 2013, compared with the Dh697.9m loss it previously reported in February.
The difference stems from a provision of Dh229.17m related to an arbitration award against the company disclosed last week.
The arbitration centred on a dispute between the shipping company and a group of Chinese shipbuilders over a 2011 contract for building two petroleum tankers.
The arbitrators found in the shipbuilders’ favour, and ruled that Gulf Navigation must pay the second part of the building contract, together with interest.
The company said it was considering whether to appeal the ruling.
Gulf Navigation’s operating loss for the year soared to Dh863.83m from Dh66.85m in 2012, with a Dh292.8m impairment of goodwill and a Dh262.66m adjustment on vessels classified as held for sale.
The company’s shares were down by as much as 3.57 per cent in early trading and closed down by 2.8 per cent.
jeverington@thenational.ae
