Nakilat Profit slips
Nakilat announced its financial results for the year ended 31 December 2016, with a net profit of QR 955 million achieved compared to QR 984 million in 2015. The earnings per share attained in 2016 was QR 1.72 compared to QR 1.77 in the same period last year. The Board of Directors has decided to convene the ordinary general assembly on Sunday March 12th, 2017.
Nakilat’s Board of Directors commended the company’s resilient financial results despite the challenging market conditions, which clearly reflects the strength and stability of the company’s commercial position. Nakilat’s long-term contracts continue to underpin the company’s strongfinancial performance.
Given the downturn in market conditions, the company is pursuing a prudentand balanced strategy of strengthening its balance sheet, capitalizing on profitable business growth, and achieving cost consolidations. The achievement of Nakilat’s vision to be a global leader and provider of choice for energy transportation and maritime services remains a top priority for the company.
The decline in oil and gas prices and overcapacity in the shipping industry has placed a downward pressure on the shipping markets and asset prices.Nakilat’s approach to its dividend disbursement would enable the company to continue to maintain a strong balance sheet and stable cash flow to support its debt repayment structure and remain resilient in the current volatile market environment. This would allow the company to maintain its leading market position in the transportation of liquefied natural gas (LNG) and capitalize on future opportunities that may arise.
In this regard, the Board recommended distributing a cash dividend to the shareholders equal to 10% of the nominal value of its capital, which is equivalent to “One Riyal” per share.
During rating affirmations processes last year, the Rating Agencies had attributed the company’s success to its resilience to market volatility and its consistent and reliable record for operating LNGvessels.
The Board affirmed Nakilat’s continuous commitment to pursue its development and growth strategy in the long term, in order to achieve stronger returns for its shareholders. In conclusion, the Board of Directors expressed its sincere thanks to all of those who contributed to achieve these results from Nakilat’s shareholders, executive management and employees.