GulfNav PJSC announces 3Q 2009 results

During the period the Company recorded a net profit of Dhs11.62m compared to Dhs136.9m for the same period of 2008. Revenues declined to Dhs255.46m versus Dhs306.45m with operating profit of Dhs101.62m against Dhs189.85m.

The Company's total assets as of 30th Sept 3009 stood at Dhs2.954bn compared to Dhs3.038bn as at the end of last year.

Commenting on the results, Engineer Abdullah Al Shuraim, the Chairman of Gulf Navigation Holding said" During the last quarter the Company has continued to confront the major challenges facing the shipping industry worldwide and in spite of the difficulties, has managed to generate positive cash flows and a positive bottom line. The loss of certain time charter contracts due to charterer's being unable to fulfil their contractual commitment forced the company to place some vessels on the spot market.

However the Company has filed a lawsuit of $52m of charter due for the remainder of the contract and is expected to obtain good portion of that amount after the competent court's verdict is issued, which will certainly improve the company's results in the future".

"The Company's strategy is to focus on improving vessel performance, expanding its fleet at the right values, reduce costs and internally strengthen the organisation to capitalise on the future upturn which will ultimately follow. These measures along with the strong balance sheet will position the company to perform better in the coming years. Existing new building contracts are being reviewed with the aim of strengthening the Company's cash position".

Engineer Al Shuraim went on to say that "the Board of Directors discussed the study submitted for the purchase of four petrochemical carriers with high specifications and authorized the Executive Committee to carry out the final stage of negotiations provided a satisfactory price can be obtained. In addition, the Board has instructed the Executive Committee and the Company's management to carry on looking for best opportunities to buy crude oil and product tankers, either through acquisition or new buildings of low prices to which will assuredly achieve the company's strategy to increase its fleet".

Per Wistoft, the company's Chief Executive Officer, said:

"Our markets are presently seeing a shrinking order book from the shipyards and a subsequent lower than originally projected supply of vessels. This will ultimately lead to better rates and we are working towards positioning the company to take advantage of this situation."

In other business highlights during this quarter, the establishment of the Company office in Riyadh, Kingdom of Saudi Arabia is well underway with the aim of servicing its Saudi Arabian clients such as Saudi Aramco ,Sabic and other petrochemicals companies in Jubail and Yanbu, consequently increasing its presence and business in that area.