Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — H1 2020 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Jul 29, 2020
Slide 1: H1 2020 Financial Summary Conference Call
H1 2020 Financial Summary Conference Call Doha, Qatar July 29, 2020
Slide 2: Consolidated Income Statement – H1
Consolidated Income Statement – H1 (All amounts in QR Millions) 2018 2019 2020 Operating Revenue 1,254 1,261 1,225 Salaries, Wages and Other Benefits (270) (292) (292) Revenue -3% Operating Supplies and Expenses (464) (480) (402) Rent Expenses (8) (5) (3) Operating Profit 9% Depreciation and Amortis
Slide 3: Activities by Segment
Activities by Segment • 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 • Warehousing & Services • Crude , Chemicals & • Strategic and
Slide 4: Net Profit, by Segment
Net Profit, by Segment – H1 (All amounts in QR Millions) 64% %’s shown vs 2019 -60% -29% 5% 3% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – H1 2020
Statement of Income, by Segment – H1 2020 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 437 397 165 89 260 - (124) 1,225 Salaries, Wages & Benefits (167) (36) (14) (6) (4) (66) - (292) Ope
Slide 6: Statement of Income, by Segment – H1 2019
Statement of Income, by Segment – H1 2019 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 459 366 143 140 308 - (155) 1,261 Salaries, Wages & Benefits (174) (33) (13) (8) (3) (61) - (292) Op
Slide 7: Segment Performance – Maritime & Logistics
Segment Performance – H1 (All amounts in QR Millions) Maritime & Logistics 2018 2019 2020 5% Decrease in Revenue and 29% decline in Net Profit Operating Revenue 473 459 437 o Revenue decrease primarily from Container Shipping (incl Bulk) unit • COVID19 lockdowns & demand disruptions impacted TEU vol
Slide 8: Segment Performance – Offshore Marine
Segment Performance – H1 (All amounts in QR Millions) Offshore Marine 8% Increase in Revenue and 5% Increase in Bottom Line 2018 2019 2020 Operating Revenue 268 366 397 o Revenue increase mainly from Vessel Chartering • Average utilization for regional fleet decreased slightly from 80% in Salaries,
Slide 9: Segment Performance – Gas & Petrochem
Segment Performance – H1 (All amounts in QR Millions) Gas & Petrochem 2018 2019 2020 15% Increase in Revenue and 64% Increase in Net Profit Operating Revenue 145 143 165 o Revenue increased by QR 22m Salaries, Wages and Other Benefits (13) (13) (14) • LNG Vessels include 3.5m one-time adjustment and
Slide 10: Segment Performance – Trading
Segment Performance – H1 (All amounts in QR Millions) Trading 2018 2019 2020 36% Decline in Revenue and 3% Increase in bottom line Operating Revenue 149 140 89 o Despite lower overall revenues, an increase in gross margins in Salaries, Wages and Other Benefits (8) (8) (6) the Bunker unit drove a red
Slide 11: Segment Performance – Capital
Segment Performance – H1 (All amounts in QR Millions) Capital 2018 2019 2020 16% Decline in Revenue and 60% Decline in Net Profit Operating Revenue 356 308 260 o QR (48)M decrease in Revenue split: Salaries, Wages and Other Benefits (4) (3) (4) • (6)m decrease in dividend income Operating Supplies a
Slide 12: Outlook – Maritime & Logistics
Outlook Maritime & Logistics QTerminals • Expect volume stability at Hamad port vs Q2 for rest of year Container Shipping • The impact of COVID19 on both supply and demand is expected to slowly ease up which should have a favorable impact on volumes. Timing however is unpredictable. Logistics • Expe
Slide 13: Outlook – Offshore Marine
Outlook Offshore Marine Offshore Support Vessels • Outlook for the rest of the year is uncertain considering persistent low oil prices coupled with potential impact from COVID19 Harbor Operations • Expect stable revenue throughout the year 13
Slide 14: Outlook – Gas & Petrochem
Outlook Gas & Petrochem VLGCs • Charter rates well above same period last year on average but have dropped considerably the past couple months; outlook unpredictable Jointly & Fully owned LNG carriers • Fairly stable earnings due to long term fixed nature of contracts 2 Fully-owned product tankers +
Slide 15: Outlook – Trading
Outlook Trading Expect difficult rest of year as COVID19 has directly and indirectly impacted demand 15
Slide 16: Outlook – Capital
Outlook Capital Limited Investments volatility • All of Held for Trading Portfolio liquidated Mixed results expected for Real Estate holdings • Much has already been absorbed, but could see additional pressure on rates on existing properties • Navigation Tower lease renewed, albeit at lower rate • N
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