Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — Q3 2019 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Oct 30, 2019
Slide 1: YTD Sep 2019 Financial Summary Conference Call
YTD Sep 2019 Financial Summary Conference Call October 30, 2019 Doha, Qatar 1
Slide 2: Consolidated Income Statement – YTD Sep
Consolidated Income Statement – YTD Sep (All amounts in QR Millions) 2017 2018 2019 Operating Revenue 1,656 1,810 1,831 Salaries, Wages and Other Benefits (401) (421) (442) Revenue 1.1% Operating Supplies and Expenses (673) (689) (728) Rent Expenses (10) (12) (7) Operating Profit -12% Depreciati
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 – YTD Sep
Net Profit, by Segment – YTD Sep (All amounts in QR Millions) %’s shown vs 2018 353% -24% 118% -1784% -221% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – YTD Sep 2019
Statement of Income, by Segment – YTD Sep 2019 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 696 567 204 200 383 - (219) 1,831 Salaries, Wages & Benefits (261) (54) (20) (12) (5) (91) - (4
Slide 6: Statement of Income, by Segment – YTD Sep 2018
Statement of Income, by Segment – YTD Sep 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 678 449 218 229 438 - (202) 1,810 Salaries, Wages & Benefits (238) (54) (20) (12) (6) (92) - (4
Slide 7: Segment Performance – Maritime & Logistics
Segment Performance – YTD Sep (All amounts in QR Millions) 2018 2019 3% Increase in Revenue and 118% increase in Net Profit Operating Revenue 678 696 o Revenue increase coming from Logistics & Bulk Shipping units Salaries, Wages and Other Benefits (238) (261) Operating Supplies and Expenses (489) (5
Slide 8: Segment Performance – Offshore
Segment Performance – YTD Sep (All amounts in QR Millions) 2018 2019 26% Increase in Revenue and 1784% decline in bottom line Operating Revenue 449 567 o Revenue increase mainly from Vessel Chartering Salaries, Wages and Other Benefits (54) (54) Operating Supplies and Expenses (51) (91) • Average ut
Slide 9: Segment Performance – Gas & Petrochem
Segment Performance – YTD Sep (All amounts in QR Millions) 2018 2019 7% Decline in Revenue and 353% Increase in Net Profit Operating Revenue 218 204 o Slight revenue drop Salaries, Wages and Other Benefits (20) (20) o Higher tanker market rates drove up Tankers unit Operating Supplies and Expenses (
Slide 10: Segment Performance – Trading
Segment Performance – YTD Sep (All amounts in QR Millions) 2018 2019 12% Decline in Revenue and 221% decline in bottom line Operating Revenue 229 200 o Large drop in bunker and heavy equipment sales, with an Salaries, Wages and Other Benefits (12) (12) associated drop in Operating Expenses Operating
Slide 11: Segment Performance – Capital
Segment Performance – YTD Sep (All amounts in QR Millions) 2018 2019 13% Decline in Revenue and 24% decline in Net Profit Operating Revenue 438 383 Salaries, Wages and Other Benefits (6) (5) o QR (55)M decrease in Revenue mainly from Investments: Operating Supplies and Expenses (85) (92) • QR (24)M
Slide 12: Outlook
Outlook ➢ Expect limited volume volatility at Hamad port, keeping QTerminals income relatively steady ➢ Expect container feeder margins to remain under pressure ➢ Ramp-up of utilization in Milaha Logistics City warehouses continuing 12
Slide 13: Outlook
Outlook ➢ Offshore Support Vessels: we expect to see year-over-year revenue and operating profit growth as a result of: o Full year impact from Liftboat which is employed in W Africa (began end of June 2018) o Commencement of new projects that began in H2 2018 ➢ Harbor marine vessels: expect stable
Slide 14: Outlook
Outlook ➢ VLGCs: charter rates improved substantially. Cautiously optimistic about rest of year. ➢ 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 volatili
Slide 15: Outlook
Outlook ➢ Expect challenging outlook for this segment rest of year. 15
Slide 16: Outlook
Outlook ➢ Limited Investments volatility: o Majority of Held for Trading Portfolio liquidated and used to acquire additional 6% Nakilat stake Feb 2019 ➢ Given diverse nature of Real Estate holdings, expect stable returns o Villa compound in Ein Khaled expected for completion in 6-8 weeks 16
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