Slide 1: Q1 2019 Financial Summary Conference Call
Q1 2019 Financial Summary Conference Call April 29, 2019 Doha, Qatar 1
Slide 2: Consolidated Income Statement – Q1
Consolidated Income Statement – Q1 (All amounts in QR Millions) 2017 2018 2019 Operating Revenue 648 698 708 Salaries, Wages and Other Benefits (129) (137) (149) Revenue Up 1% Operating Supplies and Expenses (206) (226) (218) Rent Expenses (4) (5) (3) Operating Profit Up 6% Depreciation and Amor
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 – Q1
Net Profit, by Segment – Q1 (All amounts in QR Millions) -12% %’s shown vs 2018 161% -23% -88% 26% Unfavorable Favorable 4
Slide 5: Statement of Income, by Segment – Q1 2019
Statement of Income, by Segment – Q1 2019 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 231 188 78 57 232 - (79) 708 Salaries, Wages and Other Benefits (88) (16) (6) (4) (1) (33) - (149) O
Slide 6: Statement of Income, by Segment – Q1 2018
Statement of Income, by Segment – Q1 2018 (All amounts in QR Millions) Maritime & Gas & Eliminations/ Logistics Offshore Petrochem Trading Capital Corporate Adjustments Consolidated Operating Revenue 256 127 75 79 255 - (94) 698 Salaries, Wages and Other Benefits (77) (15) (6) (4) (2) (32) - (137) O
Slide 7: Segment Performance
Segment Performance – Q1 (All amounts in QR Millions) 2018 2019 9% Decline in Revenue and 23% decline in Net Profit Operating Revenue 256 231 o Revenue drop driven by Container & Bulk Shipping units Salaries, Wages and Other Benefits (77) (88) • Reduction in volumes (8%) and rates in Container Feede
Slide 8: Segment Performance
Segment Performance – Q1 (All amounts in QR Millions) 2018 2019 48% Increase in Revenue and 26% Increase in bottom line Operating Revenue 127 188 o Revenue increase mainly from Vessel Chartering Salaries, Wages and Other Benefits (15) (16) Operating Supplies and Expenses (17) (34) • Average utilizat
Slide 9: Segment Performance
Segment Performance – Q1 (All amounts in QR Millions) 2018 2019 4% Increase in Revenue and 161% Increase in Net Profit Operating Revenue 75 78 o Slight revenue increase tied to improved Tanker Market Rates Salaries, Wages and Other Benefits (6) (6) Operating Supplies and Expenses (6) (4) more than o
Slide 10: Segment Performance
Segment Performance – Q1 (All amounts in QR Millions) 2018 2019 28% Decline in Revenue and 88% Decline in Net Profit Operating Revenue 79 57 o Large drop in low margin bunker sales Salaries, Wages and Other Benefits (4) (4) Operating Supplies and Expenses (71) (51) Rent Expenses (1) (1) o Decrease i
Slide 11: Segment Performance
Segment Performance – Q1 (All amounts in QR Millions) 2018 2019 9% Decline in Revenue and 12% Decline in Net Profit Operating Revenue 255 232 o QR (22)M decrease in Revenue broken out as follows: Salaries, Wages and Other Benefits (2) (1) Operating Supplies and Expenses (39) (36) • QR (4)M decrease
Slide 12: Outlook
Outlook ➢ Expect limited volume volatility at Hamad port, keeping QTerminals income relatively 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 wareho
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 in Q1, but outlook remains uncertain ➢ 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; outlook remains
Slide 15: Outlook
Outlook ➢ Expect another challenging year for this segment with limited growth potential 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 on track to open Q3 2019 16