Qatar Navigation Qsc · QSE:QNNS

Qatar Navigation Qsc — Qatar Navigation (Milaha) — Q1 2015 Earnings Presentation

17 slides from Qatar Navigation Qsc's earnings presentation, Apr 30, 2015

  1. Slide 1: Q1 2015 Financials Conference Call

    Q1 2015 Financials Conference Call April 30th, 2015 Doha, Qatar 1

  2. Slide 2: Quarterly Financial Highlights

    Quarterly Financial Highlights (All amounts in QR Millions) Revenue Net Profit 900 800 800 786 729 700 703699 700 653 600 600 560 528 545 515 500 500 400 345 349 365 400 303 300 300 228 224 209 200 169 172 200 100 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2013 2014 2015 2

  3. Slide 3: Statement of Income, Consolidated

    Statement of Income, Consolidated (All amounts in QR Millions) 2013 2014 2015 Variance OPERATING REVENUE 703 699 786 87 Salaries, Wages and Benefits (150) (155) (167) (12)  Revenue Up +12% Operating Supplies and Expenses (170) (169) (233) (64) Rent Expenses (15) (15) (5) 10  Operating Profit up +2

  4. Slide 4: 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 •

  5. Slide 5: Net Income, by Segment

    Net Income, by Segment – Q1 (All amounts in QR Millions) Core Non-Core 235 225 -31% 162 v +45% 114 +175% 78 -17% 53 +63% 56 42 46 33 +332% 38 29 19 23 14 12 2 3 Maritime & Logistics Offshore Gas & PetroChem Trading Capital Corporate Unfavorable 2013 2014 2015 Favorable 5

  6. Slide 6: Statement of Income, by Segment – Q1 2015

    Statement of Income, by Segment – Q1 2015 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 257 162 77 127 218 - (54) 786 Salaries, Wages and Benefits (49) (59) (21) (5) (3) (32) 1 (167) Opera

  7. Slide 7: Statement of Income, by Segment – Q1 2014

    Statement of Income, by Segment – Q1 2014 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 205 120 55 80 291 - (52) 699 Salaries, Wages and Benefits (49) (43) (22) (4) (3) (36) 2 (155) Operat

  8. Slide 8: Segment Performance – Q1

    Segment Performance – Q1 (All amounts in QR Millions) 2013 2014 2015 OPERATING REVENUE 217 205 257  +25% Revenue Growth and +175% Net Profit Salaries, Wages and Benefits (43) (49) (49) Growth vs 2014 Operating Supplies and Expenses (87) (83) (99) Rent Expenses (0) (1) (2) o Revenue increase of QR 5

  9. Slide 9: Segment Performance – Q1

    Segment Performance – Q1 (All amounts in QR Millions) 2013 2014 2015 OPERATING REVENUE 132 120 162  +35% Revenue Growth and +63% Net Profit Growth Salaries, Wages and Benefits (45) (43) (59) vs 2014 Operating Supplies and Expenses (20) (24) (32) Rent Expenses (2) (2) (1) o Revenue increase of QR 42

  10. Slide 10: Segment Performance – Q1

    Segment Performance – Q1 (All amounts in QR Millions) 2013 2014 2015 OPERATING REVENUE 42 55 77  +39% Revenue Growth and +45% Net Profit Growth Salaries, Wages and Benefits (19) (22) (21) vs 2014 Operating Supplies and Expenses (7) (11) (8) Rent Expenses (0) (1) (1) o Revenue increase of QR 22M dri

  11. Slide 11: Segment Performance – Q1

    Segment Performance – Q1 (All amounts in QR Millions) 2013 2014 2015 OPERATING REVENUE 75 80 127  +59% Revenue Growth and +332% Net Profit Salaries, Wages and Benefits (4) (4) (5) Growth vs 2014 Operating Supplies and Expenses (62) (66) (106) Rent Expenses (0) (0) (1) o Revenue increase of QR 47M d

  12. Slide 12: Segment Performance – Q1

    Segment Performance – Q1 (All amounts in QR Millions) 2013 2014 2015  25% Decline in Revenues and 31% Decline in Net OPERATING REVENUE 282 291 218 Profit vs 2014 Salaries, Wages and Benefits Operating Supplies and Expenses (4) (28) (3) (26) (3) (35) o Revenue decreased QR 73M , driven by Rent Expen

  13. Slide 13: Outlook

    Outlook  Macro: Expect continued strong volume growth from increased project activity in lead up to 2022 World Cup; positive impact on revenues across most business units in the segment  Ports: Expect that additional revenue realized in Q1 2015 from change in free yard storage tariff from 10 days

  14. Slide 14: Outlook

    Outlook  Macro: Global offshore marine market downturn underway as E&P capex is slashed in response to lower oil prices; downward pressure on day rates and utilisation likely  At this stage, still expect stronger year overall relative to 2014 despite downturn  Full year revenues on DSV Shaddad to

  15. Slide 15: Outlook

    Outlook  VLGCs: Have been put on long term charter in strong market; limited volatility  Jointly owned LNG carriers: limited fluctuation due to long term nature of contracts  Fully-owned product tankers + 1 crude carrier: Earnings on average expected to remain strong through 2015 as rates remain

  16. Slide 16: Outlook

    Outlook  Expect a strong year overall driven by sales of trucks and heavy equipment tied to infrastructure projects, but quarterly results could be patchy due to nature of sales cycles  Expect reasonable growth in other trading activities – bunker sales, travel agency, lubricants distribution 16

  17. Slide 17: Outlook

    Outlook  Listed portfolio performance strongly correlated to Qatar Exchange performance and volatility  Real estate to continue to realize year-on-year savings from moving HQ to owned vs leased facility (occurred early Q4 2014)  Expect some revenue bump from renting out commercial space in new de

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