OREANDA-NEWS. Gulf International Services (“GIS” or “the group”; QE: GISS), the largest services group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, reinsurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services, announced its financial results for the year ended December 31, 2015 with a revenue of QR 4.2 billion and a net profit of QR 801.4 million.

Financial Results

Revenue
Management reporting revenue for the year ended December 31, 2015, calculated by proportionately consolidating group results as per IAS 31, was QR 4.2 billion, representing a moderate decrease of QR 92.5 million, or 2.2 %, over last year. Versus the last quarter, the group revenue was down by QR 78.1 million or by 8.0% mainly due to drop in drilling segment revenue.

Net Profit
Net profit for the year closed at QR 801.4 million, a year-on-year decrease of QR 608.5 million. Excluding the one-off gain from business combination recorded in the previous year amounting to QR 269.4 million, the year-on-year decrease was 29.7%. This year-on-year decrease was primarily driven by a reduction in revenue due to the decline in crude oil prices and to remain competitive.

Cost and operational optimization programs
With cost reduction becoming its top most priority, the Group has already embarked on a number of initiatives to identify opportunities where costs could be minimized and utilization of the assets could be optimized.

As part of these plans, GIS’ drilling and aviation subsidiaries are actively relooking at optimal deployment plan of their asset base while its insurance subsidiary recently received A- rating from credit rating agency Standard & Poor's, which will be a major strength when they negotiate rates with reinsurers and lenders. The company started to consolidate its underwriting capabilities and change its structure to meet the new phase.

Proposed Dividend Distribution
Supporting a rational dividend payout practice that balances the needs and aspirations of shareholders with the necessity of maintaining adequate liquidity for financing and investment requirements, the Board of Directors proposes a total annual dividend distribution for the year ended December 31, 2015 of QR 185.8 million, equivalent to a payout of QR 1 per share, and representing 23.2 % of the group’s net profit.

ABOUT GIS
Gulf International Services QSC was incorporated as a Qatari joint stock company on February 12, 2008 by Resolution Number 42 of 2008 of the State of Qatar’s Ministry of Economy and Commerce, pursuant to its Memorandum and Articles of Association and Law Number 5 of 2002 concerning Commercial Companies. The authorised share capital is QR 2 billion with the issued share capital consisting of 148.7 million ordinary shares and 1 special share. Through the group companies, Gulf International Services QSC operates in four distinct segments - insurance and reinsurance, drilling, helicopter transportation and catering services. Qatar Petroleum, the largest shareholder, provides all of the head office functions for Gulf International Services QSC through a comprehensive service directive. The operations of the subsidiaries remain independently managed by their respective Boards of Directors and senior management teams.