GNH plans to issue $250M sukuk soon dh31.3M
dubai — Gulf Navigation Holding’s (GNH) net profit for the third quarter of 2017 sank nearly 90 per cent. The firm established a new joint venture company and will issue a $250 million sukuk before the end of the year.
The shipper’s Q3 2017 profit fell to Dh12.36 million from Dh116.8 million for the same period last year. Similarly, ninemonth profits plunged 76 per cent to Dh31.39 million from Dh131.1 million during the same period last year. Its Q3 2017 earnings per share dropped from Dh0.212 to Dh0.022.
The Dubai-listed firm’s assets grew from Dh958.95 million at the end of December 2016 to over Dh1 billion by the end of September 2017. The company’s shares on Wednesday fell nearly two per cent to close the day at Dh1.5.
The new joint venture company has been established in cooperation with Ali & Sons Marine Engineering Factory (Asmef) in Abu Dhabi to tap opportunities in oil and gas, offshore, ship building/ repairs and marine services as countries in the region plan to invest $140 billion in energy and petrochemicals projects over the next 10 years, the company said. is the nine-month profit recorded by Gulf Navigation holding
The company said the funds raised through the sukuk would be used to finance expansion and diversify its investment portfolio.
“Our new strategy targets collaborating with leading national companies in the UAE. We look forward to our potential strategic partnership with Ali & Sons Marine Engineering. We aim to jointly expand our current business activities in the maritime sector in order to secure maximum returns on our investments,” said Khamis Juma Buamim, managing director and Group CEO, Gulf Navigation Holding.
“This potential partnership will enable us to benefit from the promising opportunities ahead, especially since the volume of investments allocated by Gulf countries to develop offshore fields will exceed $40 billion over the next 10 years. We aim at having a share of these investments,” he added.
— waheedabbas@khaleejtimes.com