Posted on August 03, 2016
Gulf International Services (GIS) reported Tuesday net profit of QR 160.7 million in the first half of 2016 compared to QR 705.4 million in the same period last year, the company said in a press release. Return on equity was QR 0.86 lower during the same period as well, compared with QR 3.26 recorded in the first half of 2015.
"This year-on-year decrease was primarily driven by the challenges witnessed across all the segments due to the reduced level of activities and decline in contract rates," the company said. Revenues for the first half decreased to QR 1.6 billion from QR 2.3 billion in the first half of 2015. This reduction was attributed to ongoing "ongoing downward rates revision" and weaker levels of activities all over the group's segments thanks to the significant drop in the crude oil prices. As a result, "the cost optimization program became a top priority among all group companies," the company said.
GIS has significant investments in national and international oil and gas industry, including well support services, offshore and onshore drilling services, helicopter maintenance and transportation services, insurance and reinsurance services.