Qatar Navigation Qsc · QSE:QNNS
Qatar Navigation Qsc — Qatar Navigation (Milaha) — Q1 2017 Earnings Presentation
16 slides from Qatar Navigation Qsc's earnings presentation, Apr 27, 2017
Slide 1: Q1 2017 Financial Summary Conference Call
Q1 2017 Financial Summary Conference Call April 27, 2017 Doha, Qatar 1
Slide 2: Interim Consolidated Income Statement – Full Year
Interim Consolidated Income Statement – Full Year (All amounts in QR Millions) 2015 2016 2017 Operating Revenue 786 767 648 Salaries, Wages and Other Benefits (167) (159) (129) Revenue Down (16)% Operating Supplies and Expenses (233) (233) (206) Rent Expenses (5) (4) (4) Operating Profit Down (2
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
Net Profit, by Segment – Q1 (All amounts in QR Millions) %’s shown vs 2016 -14% -37% -37% -208% -67% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – Q1 2017
Statement of Income, by Segment – Q1 2017 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 191 135 101 67 210 - (56) 648 Salaries, Wages & Benefits (30) (42) (24) (4) (2) (27) - (129) Operati
Slide 6: Statement of Income, by Segment – Q1 2016
Statement of Income, by Segment – Q1 2016 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 251 145 121 100 191 - (40) 767 Salaries, Wages & Benefits (54) (46) (26) (5) (1) (27) 0 (159) Operat
Slide 7: Segment Performance – Q1 (Maritime & Logistics)
Segment Performance – Q1 (All amounts in QR Millions) 2015 2016 2017 24% Decline in Revenue and 37% Decline in Net Profit Operating Revenue 257 251 191 o Large Revenue drop due to change in P&L reporting for Port unit Salaries, Wages and Other Benefits (49) (54) (30) • Hamad Port results shown on 1
Slide 8: Segment Performance – Q1 (Offshore)
Segment Performance – Q1 (All amounts in QR Millions) 2015 2016 2017 7% Decline in Revenue and 208% Decline in Net Profit Operating Revenue 162 145 135 o Revenue increase in Diving Services due to 1 vessel offhire in Q1 Salaries, Wages and Other Benefits (59) (46) (42) 2016, but onhire in Q1 2017 Op
Slide 9: Segment Performance – Q1 (Gas & Petrochem)
Segment Performance – Q1 (All amounts in QR Millions) 2015 2016 2017 17% Decline in Revenue and 37% Decline in Net Profit Operating Revenue 77 121 101 o 1 Gas Carrier off-hire and still looking for employment Salaries, Wages and Other Benefits (21) (26) (24) Operating Supplies and Expenses (8) (13)
Slide 10: Segment Performance – Q1 (Trading)
Segment Performance – Q1 (All amounts in QR Millions) 2015 2016 2017 33% Decline in Revenue and 67% Decline in Net Profit Operating Revenue 127 100 67 o Large drop in sales of heavy equipment tied to infrastructure Salaries, Wages and Other Benefits (5) (5) (4) spending; related Cost of Goods Sold d
Slide 11: Segment Performance – Q1 (Capital)
Segment Performance – Q1 (All amounts in QR Millions) 2015 2016 2017 10% Increase in Revenue and 14% Decline in Net Profit Operating Revenue 218 191 210 Salaries, Wages and Other Benefits (3) (1) (2) o Increase in sales from Qatar Quarries associate; related Cost of Operating Supplies and Expenses (
Slide 12: Outlook
Outlook Macro: TEU volumes difficult to predict at Hamad Port, but expected to increase versus 2016 Container Feedering unit margins under pressure; new service to Saudi Arabia open 12
Slide 13: Outlook
Outlook Macro: Global offshore marine market remains depressed. Regionally, we are beginning to see more tenders being put out, particularly from Saudi Arabia, but rates remain low. Focus remains on maximizing utilization and improving efficiency. 13
Slide 14: Outlook
Outlook VLGCs: charter rates remain depressed; 1 vessel came off long term charter end of 2016; 2 come off charter mid/end of 2017; 1 comes off charter 2018 Jointly & Fully owned LNG carriers: limited fluctuation versus 2016 due to long term fixed nature of contracts Fully-owned product tanker
Slide 15: Outlook
Outlook Expect an uptick in sales in 2017, as projects related to 2022 FIFA and major infrastructure works move ahead 15
Slide 16: Outlook
Outlook Listed portfolio performance strongly correlated to Qatar Exchange performance and volatility Expect an uptick in Real Estate unit in H2 2017 as Al Thumama warehouses go-live 16
Qatar Navigation (Milaha) — Q1 2017 Earnings Presentation on 6ix