Qatar Navigation Qsc · QSE:QNNS

Qatar Navigation Qsc — Qatar Navigation (Milaha) — H1 2018 Earnings Presentation

16 slides from Qatar Navigation Qsc's earnings presentation, Aug 2, 2018

  1. Slide 1: H1 2018 Financial Summary Conference Call

    H1 2018 Financial Summary Conference Call August 2, 2018 Doha, Qatar 1

  2. Slide 2: Interim Consolidated Income Statement – H1

    Interim Consolidated Income Statement – H1 (All amounts in QR Millions) 2016 2017 2018 Operating Revenue 1,387 1,146 1,254 Salaries, Wages and Other Benefits (325) (262) (270)  Revenue Up 9% Operating Supplies and Expenses (438) (456) (464) Rent Expenses (8) (7) (8)  Operating Profit Up 51% Deprec

  3. Slide 3: Activities by Segment

    Activities by Segment Maritime & Gas & Offshore Trading Capital Logistics Petrochem • Port Services • Vessel Charter & • LNG Transport • Heavy Equipment • Real Estate Operations and Truck Agency Development and • Container Shipping • LPG Transport Management • Diving & Subsea • Bunker Distribution •

  4. Slide 4: Net Profit, by Segment – H1

    Net Profit, by Segment – H1 (All amounts in QR Millions) 109% %’s shown vs 2017 -96% 123% -110% 19% Unfavorable Favorable 4

  5. Slide 5: Statement of Income, by Segment – H1 2018

    Statement of Income, by Segment – H1 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 473 223 190 149 356 - (137) 1,254 Salaries, Wages & Benefits (65) (82) (53) (8) (4) (60) - (270) Ope

  6. Slide 6: Statement of Income, by Segment – H1 2017

    Statement of Income, by Segment – H1 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 391 239 194 162 276 - (116) 1,146 Salaries, Wages & Benefits (62) (79) (50) (8) (4) (60) - (262) Ope

  7. Slide 7: Segment Performance – H1

    Segment Performance – H1 (All amounts in QR Millions) 2016 2017 2018 21% Increase in Revenue and 123% Increase in Net Profit Operating Revenue 512 391 473 o Revenue increase driven by Container Shipping & Logistics units Salaries, Wages and Other Benefits (106) (62) (65) • Container Shipping volumes

  8. Slide 8: Segment Performance – H1

    Segment Performance – H1 (All amounts in QR Millions) 2016 2017 2018 7% Decline in Revenue and 19% Increase in bottom line Operating Revenue 292 239 223 o Revenue decline in both Vessel Chartering and Services mainly due Salaries, Wages and Other Benefits (93) (79) (82) to rate discounts applied in

  9. Slide 9: Segment Performance – H1

    Segment Performance – H1 (All amounts in QR Millions) 2016 2017 2018 2% Decline in Revenue and 96% Decline in Net Profit Operating Revenue 237 194 190 o Revenue decline coming mainly from owned/partnered Tankers due Salaries, Wages and Other Benefits (52) (50) (53) Operating Supplies and Expenses (2

  10. Slide 10: Segment Performance – H1

    Segment Performance – H1 (All amounts in QR Millions) 2016 2017 2018 8% Decline in Revenue and QR 9M Decline in Net Profit Operating Revenue 185 162 149 o Large drop in sales of heavy equipment more than offset increase Salaries, Wages and Other Benefits (10) (8) (8) in bunker sales Operating Suppli

  11. Slide 11: Segment Performance – H1

    Segment Performance – H1 (All amounts in QR Millions) 2016 2017 2018 29% Increase in Revenue and 109% Increase in Net Profit Operating Revenue 259 276 356 o QR 80M increase in Revenue broken out as follows: Salaries, Wages and Other Benefits (3) (4) (4) Operating Supplies and Expenses (54) (105) (58

  12. Slide 12: Outlook

    Outlook Macro:  Expect to see continued strong volumes at Hamad port in H2 2018  Expect container feedering margins to be under pressure due to increases in the cost of bunker and competitive rate pressure  Ramp-up of utilization at Al Thumama warehouses will contribute positively to the logistic

  13. Slide 13: Outlook

    Outlook Macro: Expect the fundamentals in the offshore market to gradually improve on the back of higher oil prices, declining OSV fleet supply and rising oil production.  Operationally, we expect H2 2018 to start seeing increase in revenue as: o Liftboat commenced work in Nigeria (began end of Jun

  14. Slide 14: Outlook

    Outlook  VLGCs: charter rates remain depressed; expect remainder of 2018 to be challenging  Jointly & Fully owned LNG carriers: limited fluctuation versus 2017 due to long term fixed nature of contracts  Fully-owned product tankers + 1 crude carrier: all trading in spot market and exposed to mult

  15. Slide 15: Outlook

    Outlook  Expect a challenging year for this segment rest of year 2018 15

  16. Slide 16: Outlook

    Outlook  Listed portfolio performance strongly correlated to Qatar Exchange performance and volatility 16

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