Gulf Navigation reports the Audited Annual Results of 2022 Recording Net Profits of 5 million Dirhams
Dubai, UAE, 2 April 2023: Gulf Navigation Holding PJSC (“GULFNAV”) the Dubai Financial Market listed maritime and shipping company, announced its annual audited financial results of 2022.
- Gross Revenue reached 137 million dirhams as of 31 Dec 2022 compared to 119 million dirhams for the same period in 2021.
- Gross Profits of 20 million dirhams in 2022 compared to a Gross Profit of 21 million dirhams in 2021.
- Shareholders’ equity increased by 13% to 423 million dirhams as of 31 Dec 2022 compared to 375 million dirhams in 2021.
- Total Assets stood at 792 million dirhams by the end of 2022 compared to 834 million dirhams for the same period in 2021.
Shift to profitability
Commenting on the results, His Highness Sheikh Theyab bin Tahnoon bin Mohammad Al Nahyan, Chairman of Gulf Navigation Holding said:" GULFNAV has achieved strong financial results and witnessed remarkable developments over the past year. The financial and operational performance demonstrates the effectiveness of our business model and the efficiency of our team and executive management, as well as our ambitious strategy for growth and expansion in the region”.
Total shareholders’ equity increased by 13% to 423 million dirhams as of 31 Dec 2022, compared to 375 million dirhams in 2021. Revenues increased by 15% in 2022 mainly driven by the increase in charter hire and agency services. As part of its efforts to improve its financial performance, the company also reduced financing costs by 18%.
It is worth mentioning that the Company was able to reduce financing costs by restructuring all its loans under preferential terms during 2022. Where it reached an agreement to refinance 5 petrochemical tankers at a value of 62 million dollars and at an interest rate of less than 4%, which allowed the Company to completely fulfill all its obligations to some lenders and reduce the total cost of borrowing.
Furthermore, GULFNAV reached an agreement with most of the sukuk holders and trade creditors to convert more than 85 million dirhams worth of debts into shares; and the Company completed the conversion process successfully, which led to converting a large part of the Company's debts into shares and thus increasing the capital by 25%. In addition, the GULFNAV reduced its total liabilities by 20%, from 460 million dirhams as at December 2021 to 369 million dirhams by December 2022.
From his side, Ahmad Kilani, Board Member and Managing Director, said:” The executive management was able to reduce the impact of the accumulated losses on the Company's operations by improving the performance of vessels and taking the necessary measures to overcome the challenges of the COVID-19 pandemic, economic challenges and exiting unprofitable business sectors. We also changed the company's business model so that we can stay agile and fit for the future. Whereby the Company’s services are now being delivered through three integrated units: Maritime Operations, Ship Management and Agency Services. These units aim to provide an agile, flexible and comprehensive approach that gives clients tangible value.”
It should be noted that the company's general assembly has approved the reduction of the Company's capital by 50% by canceling 637.7 million shares of its shares to absorb the accumulated losses of 637.7 million dirhams. A private issuance of 220 million mandatory convertible bonds for new investors was approved, which will be converted into 200 million shares at a conversion price equivalent to 1.10 dirhams and the Company’s capital to be increased from 637.7 million dirhams to 837.7 million dirhams, after the completion of capital reduction procedures and obtaining the approval of the regulatory authorities.
Al Kilani added: "We have plans to expand and increase the fleet of petrochemical tankers and enhance the company's ability to own and manage these types of vessels. The Company's new capital will be used to purchase new petrochemical tankers, modernize the company's fleet, expand the agency services unit and the ship management unit. In addition, we aim to settle some of the Company's debts and obligations. Our goal is to increase our fleet by 50% over the next two years. Over the coming months, we will continue to focus on developing our operations, employing the right skills for our current and future requirements, and achieving high value for all stakeholders in the short and long term as we proceed to implement our strategy."
“The company also aims to focus on modern technology and environmentally friendly initiatives, in line with the policy adopted by the UAE as well as the requirements of the global shipping sector and focus on achieving zero carbon emissions by the year 2050 in line with the recommendations of the competent authorities locally and internationally. We expect that This strategy will contribute to achieving the Company's vision of diversifying its business, increasing assets and adding value to shareholders, and providing integrated maritime services in accordance with the highest international standards of quality, security and safety.” He added.
Al Kilani concluded: “We will continue to work to achieve strong and positive results, maintain the growth momentum in 2023 and achieve the greatest amount of returns for our partners and shareholders who trust us. The credit for what the company has achieved today is due to the directives of our wise leadership and its unwavering support of our ambitious plans aimed at achieving economic diversification and supporting the maritime sector in the country.”