Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — FY2018 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Feb 28, 2018
Slide 1: FY 2018 Financial Summary Conference Call
FY 2018 Financial Summary Conference Call February 28, 2018 Doha, Qatar 1
Slide 2: Consolidated Income Statement – Full Year
Consolidated Income Statement – Full Year (All amounts in QR Millions) 2016 2017 2018 Operating Revenue 2,551 2,491 2,416 Salaries, Wages and Other Benefits (636) (576) (563) Revenue Down -3% Operating Supplies and Expenses (851) (978) (941) Rent Expenses (16) (14) (15) Operating Profit Down -11
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 •
Slide 4: Net Profit, by Segment – Full Year
Net Profit, by Segment – Full Year (All amounts in QR Millions) -16% %’s shown vs 2017 -3% -45% 96% -1022% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – FY 2018
Statement of Income, by Segment – FY 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 904 572 389 297 517 - (264) 2,416 Salaries, Wages & Benefits (134) (182) (106) (15) (8) (118) - (563
Slide 6: Statement of Income, by Segment – FY 2017
Statement of Income, by Segment – FY 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 945 451 387 304 672 - (269) 2,491 Salaries, Wages & Benefits (140) (161) (101) (18) (9) (147) - (576
Slide 7: Segment Performance – Full Year (Maritime & Logistics)
Segment Performance – Full Year (All amounts in QR Millions) 2016 2017 2018 4% Decline in Revenue and 45% decline in Net Profit Operating Revenue 1,004 945 904 o Revenue drop driven by Port Ops, Container & Bulk Shipping units Salaries, Wages and Other Benefits (200) (140) (134) Operating Supplies a
Slide 8: Segment Performance – Full Year (Offshore)
Segment Performance – Full Year (All amounts in QR Millions) 2016 2017 2018 27% Increase in Revenue and 96% Increase in bottom line Operating Revenue 573 451 572 o Revenue increase mainly from Vessel Chartering Salaries, Wages and Other Benefits (178) (161) (182) Operating Supplies and Expenses (114
Slide 9: Segment Performance – Full Year (Gas & Petrochem)
Segment Performance – Full Year (All amounts in QR Millions) 2016 2017 2018 1% Increase in Revenue and 3% Decline in Net Profit Operating Revenue 456 387 389 o Depreciation & Amortization down QR 16M due to impact of past Salaries, Wages and Other Benefits (103) (101) (106) Operating Supplies and Ex
Slide 10: Segment Performance – Full Year (Trading)
Segment Performance – Full Year (All amounts in QR Millions) 2016 2017 2018 2% Decline in Revenue and QR 10M Decline in Net Profit Operating Revenue 312 304 297 o Large drop in sales of heavy equipment partially offset by increase Salaries, Wages and Other Benefits (19) (18) (15) in bunker sales Ope
Slide 11: Segment Performance – Full Year (Capital)
Segment Performance – Full Year (All amounts in QR Millions) 2016 2017 2018 23% Decline in Revenue and 16% Decline in Net Profit Operating Revenue 409 672 517 o QR (155)M decrease in Revenue broken out as follows: Salaries, Wages and Other Benefits (8) (9) (8) Operating Supplies and Expenses (132) (
Slide 12: Outlook
Outlook Macro: ➢ Expect little to no volume volatility at Hamad port, keeping QTerminals income steady ➢ Expect container feeder margins to remain under pressure as geographic network footprint expands; realized benefits will lag costs incurred ➢ Ramp-up of utilization in Milaha Logistics City wareh
Slide 13: Outlook
Outlook Macro: offshore market stabilization appears to be gaining traction, but remains on edge due to continued oil price volatility ➢ We expect to see year-over-year revenue growth as a result of: o Full year impact from Liftboat which is employed in W Africa (began end of June 2018) o Commenceme
Slide 14: Outlook
Outlook ➢ VLGCs: charter rates remain depressed at multi-year lows; outlook is negative ➢ Jointly & Fully owned LNG carriers: fairly stable earnings due to long term fixed nature of contracts ➢ Fully-owned product tankers + 1 crude carrier: all trading on spot and exposed to market volatility; curre
Slide 15: Outlook
Outlook ➢ Expect another challenging year for this segment with limited growth potential 15
Slide 16: Outlook
Outlook ➢ Held for Trading investment portfolio income to come down due to liquidation of holdings (used to acquire additional 6% stake in Nakilat) ➢ Given diverse nature of Real Estate holdings, expect limited volatility o Villa compound in Ein Khaled on track to open Q3 2019 16
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