Dubai-based shipper Gulf Navigation announced its best annual results for eight years, on account of the improvement in spot tanker rates and the reclassification of liabilities.
In a statement, the company said it had benefitted from ‘strong and consistent financial turnaround and transformation’.
It has reported net annual earnings of AED 136.6m ($37.2m), against AED 20.2m in 2015. Profits for the fourth quarter hit Dh5.4m, compared with Dh4.5m a year earlier.
“Further improvement in chemical tanker spot rates specifically contributed to increased margins along with further rationalisation of our cost structure, which led to lower finance and overhead costs,” said Khamis Buamim, Gulf Navigation’s group chief executive.
Khamis added: “We have also achieved giant strides in resolving a number of legacy issues which we expect to be fully resolved in the coming period.”
Much of the increase in annual profits was attributed to Dh107.8m worth of liabilities the company described as not requiring writing back, including a “derecognition” of Dh90.6m worth of liabilities during the year.
Gulf Navigation last month announced a global deal with maritime firm Polimar Turkish to provide services related to the oil and gas sector
, offshore vessels, container liner vessels, bulk carriers, cruise ships and yachts.