Gulf Navigation reports 12% increase in gross profit in the first quarter of 2022

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Gulf Navigation Holding PJSC (“GULFNAV”), the shipping and shipping company listed on the Dubai Financial Market, announced its financial results for the period ended March 31, 2022, reporting a net profit of 1.8 million dirhams. Additionally, the newly elected Board of Directors appointed His Highness Sheikh Theyab Bin Tahnoon Bin Mohammad Al Nahyan as Chairman of the Board of Directors, and Engr. Abdulla Atatreh as Vice President.

Main highlights of the first quarter:

  • Operating income increased by 13% to reach 35 million dirhams as of March 31, 2022, compared to 31 million for the same period in 2021.
  • Gross profit of 7 million dirhams as of March 31, 2022, compared to gross profit of 6 million dirhams for the same period in 2021.
  • Net profit reached 1.8 dirhams in Q1 2022, compared to 79 million dirhams in Q1 2021.
  • Net cash flow from operating activities reached 12 million dirhams at the end of the first quarter of 2022.
  • The balance sheet total amounted to 826 million dirhams
  • Total equity increased to 379 million dirhams as of March 31, 2021, compared to 377 million dirhams at the end of 2021.
  • General and administrative expenses decreased by 15% to 4.5 million dirhams in Q1 2022, compared to 5.4 million dirhams during the same period in 2021. The company also reduced its financing costs by 19% to 8.7 million dirhams in Q1 2022, compared to 10.7 million dirhams. in the first quarter of 2021.

Issue of compulsory convertible bonds of 150 million dirhams

The Company has started the procedure of issuing Mandatory Convertible Bonds with a maximum value of 150 million dirhams, after obtaining the necessary approvals from regulatory authorities and shareholders during the annual general meeting held on 28 April 2022. This issue aims to convert part of the company’s debt into equity, thereby increasing paid-in capital and bringing the cumulative loss to capital ratio below 50%.

Redemption of shares

Gulf Navigation Holding has started working on its share repurchase plan, not exceeding 10% of the Company’s total shares, after fulfilling the conditions and requirements required by the regulatory authorities and obtaining the approval of the shareholders during its annual general meeting. The direction of buying back some of its shares is intended to support the stock and will help build investor confidence, which will lead to more stability and improve market profitability for the stock going forward.
Source: Gulf Navigation

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