Gulfnav reports 2022 earnings

UAE’s Gulf Navigation (Gulfnav)reported a net income of AED 5 mn in 2022, falling c.92% y-o-y, according to their earnings release (pdf). The lower bottom line is a result of an unfavorable base effect, as the company was awarded an AED 82.35 mn ins. claim in 2021 for a sunken vessel. The delivered revenues of AED 137 mn in the year ending 31 December 2022, up 14% y-o-y on the back of a growth in charter hire and agency services.

2022 was a year of restructuring: Gulfnav restructured all of its loans last year, including reaching a refinancing agreement for five of their petrochemical tankers worth USD 62 mn at an interest rate of less than 4%, allowing the company to pay off most of its debt and reduce the total cost of its borrowing. The company also converted more than AED 85 mn of its debt to shares, increasing its capital by 25%. Gulfnav also trimmed its liabilities by 20% during the year, according to the earnings release. Separately, the company exited unprofitable sectors and restructured its business to focus on maritime operations, ship management, and agency services.

Looking ahead: “Our goal is to increase our fleet by 50% over the next two years,” said Managing Director Ahmad Kilani (LinkedIn). Gulfnav plans to continue to expand its agency service and ship management units, as well as utilize new technologies to help reach zero carbon emissions by 2050.