GulfNav PJSC announces 1 half 2009 results

The Company's recorded a net profit of Dhs10.18m, a drop of 89% compared to Dhs92.96m during the same period of 2008. Revenues for the two quarters declined to Dhs170.10m versus Dhs200.88m for the first half of 2008. Operating profit of Dhs67.55m, a drop of 46% versus H1 08.

The Company's total assets stood at Dhs2.996bn, up 4.6% compared to Dhs2.865bn for the same period last year. However, On the whole this reflects a prudent step forward during a period of exceptional global financial instability, nevertheless showcases sustained focus on cost control and better adaptation of the current situations.

Commenting on the results, Engineer Abdullah Al Shuraim, the Chairman of Gulf Navigation Holding said "Despite the worldwide decline in demand for transportation of energy, we at Gulf Navigation have been maintaining good rates for our long term chartered tankers. As for our six PROBO vessels which used to be chartered out, but now operated in the spot market, earnings have been in line with the market. As a cash-rich company with strong cash flows, and constant initiatives to reduce costs, optimize operational efficiencies, and maintain best long and short terms chartering contracts this will together with the new fleet expansionary negotiation have a positive impact on our performance and results in the coming quarters.

Per Wistoft, the company's chief executive officer, said

"the first half of 2009 proved to be just as challenging as expected as none of our markets have shown any sign of recovery. In such difficult times, flexibility of the company's PROBO fleet showed its worth with a shift of several vessels from wet to dry whereby a further decline was avoided. In addition 5 vessels are still covered at respectable rate for the best of the year and beyond"

He went on to say "operating a fleet to international standards is costly but necessary. We shall continue our work in optimizing technical and administrative processes"

In other business highlights during the second quarter of the year, the company has marked the official opening of the Joint Venture GULF STOLT SHIP MANAGEMENT Company "GSSM" which is set to continue technical management of the Gulf Navigation's vessels, some of Stolt Nielsen vessels, as well as additionally jointly owned tonnage.

In addition, Gulf Navigation Holding and Stolt-Nielsen S.A through another jointly owned subsidiary "GULF STOLT TANKERS" holds an order of 6 chemical tankers from a Korean shipyard. Production difficulties at the yard have however delayed the vessels and the first two contracts have subsequently been cancelled by Stolt-Nielsen. Replacement tonnage is presently being sought and is expected found at levels considerably lower than the original contract price.

Gulf Navigation also highlighted a slower pace of progression of its announced acquisition project than what was projected. All milestones in the negotiations will be announced in due course when reached.