Qatari maritime transport and logistics company Milaha saw its net income rise 0.83% y-o-y to QAR 363 mn in 1Q 2023, according to their financials (pdf). The company’s revenues fell 16% y-o-y to QAR 766 mn. Earnings per share remained stable y-o-y at QAR 0.32. The company managed to keep costs under control, with operating expenses falling 22.6% y-o-y during the quarter to QAR 556 mn.

The company’s maritime and logistics division took the biggest bottom line hit, falling 73% y-o-y to QAR 24 mn, while the segment’s revenues dropped 33% y-o-y to QAR 246 mn. This was attributed to the decline in container shipping rates and container volumes during the quarter, especially in comparison to the record rates of early 2022, according to the earnings release. The company’s gas and petroleum division saw its net income fall 5% y-o-y to QAR 156 mn, mainly due to lower income from associate firms.

Other divisions fared better: The company’s offshore marine division reported a 627% y-o-y increase to QAR 61 mn in net income and a 6.6% y-o-y revenue growth to 309 mn, as it managed to land higher margin contracts and cut costs. Although revenues for Milaha’s trading division fell 13% y-o-y to QAR 58 mn, it achieved a 232% y-o-y bottom line increase to QAR 3 mn, as it expanded its ship chandlering services and cut costs. The company’s capital division reported a 17% y-o-y increase in net income to QAR 120 mn.

Looking ahead: Milaha expects that warehousing and freight forwards will continue to slow in 2Q 2023 before picking up in 2H 2023. The company also sees shipping rates remaining “fairly stable” following their slump in the first quarter of the year.

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