Freight transport experts say net income dropped to $71.8m from $211.6m a year earlier
Qatar Navigation Co, a freight transporter, said first-quarter profit fell by more than half after “one-time, non-cash accounting adjustments” in 2010 related to the acquisition of Qatar Shipping Co.
Net income dropped to QAR261.6m ($71.8m) from QAR770.7m ($211.6m) a year earlier, the company said in a statement on the Qatar Exchange website on Thursday. EFG-Hermes Brokerage had forecast a profit of QAR222m ($60.96m). Earnings per share fell to 2.28 riyals from 6.73 riyals.
First-quarter profit last year included a QAR298m ($81.8m) gain from the acquisition of Qatar Shipping, as well as a QAR236m ($64.8m) “realised fair value gain” from the acquisition, the company said.
Revenue and operating profit growth are “true indicators of our operational performance,” Ali Bin Jassim Bin Mohammed Al Thani, the company’s chairman and managing director, said in the statement. “We are seeing increases in our core maritime operations”
Qatar Navigation’s first-quarter operating revenue this year rose to QAR533m ($146.3m), from QAR431m ($118.3m) in 2010, the company said. Operating profit increased to QAR157m ($43.11m) from QAR118m ($32.4m).
The company may benefit from increased shipping of construction materials in the emirate, which is likely to have the world’s fastest-growing economy this year, according to the International Monetary Fund.
More than 40 percent of Qatar’s 2011-12 budget, which includes a nineteen percent rise in spending, is dedicated to big infrastructure projects, including a new airport and seaport. Qatar expects domestic investment in the five years through 2016 to total QAR820bn ($225.18bn).For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.