Dubai-listed maritime firm Gulf Navigation Holding (Gulf Nav) posted a net income of AED 28 mn in 1H 2023, compared to a net loss of AED 2.5 mn during the same period last year, according to its earnings release. On a quarterly basis, the company’s net income reached AED 14 mn, compared to AED 4 mn in net losses in 2Q 2022, according to the earnings release.

Gulf Nav’s operating net income stood at AED 23 mn in 1H 2023, up from AED 4.5 mn in 1H 2022, while operating revenues fell 9.7% y-o-y to AED 65 mn. Operating costs fell to AED 54 mn in H1 2023 from AED 60 mn during the same period in 2022 as a result of selling the Gulf Mishref vessel.

The company managed to write off all accumulated losses during 2Q 2023, which totalled AED 679 mn — equivalent to 66% of the company’s capital in 2Q 2022. These losses were converted into retained earnings of AED 6 mn in 2Q 2023 through a capital reduction process, along with measures taken to enhance vessel performance, lower financing expenses, and convert a significant portion of the company’s debts into capital shares.

What they said: “Thanks to the measures taken by the board of directors to improve the financial results, the company managed to write off all the accumulated losses for the first time in the history of the company in more than 10 years,” said Ahmad Kilani, managing director and board member.

Looking ahead: The company’s outlook remains positive for the rest of the year, as it looks to expand its fleet of petrochemical tankers, as well as explore new alliances and partnerships to support its long-term growth, Kilani said.

Background: Gulf Nav had raised an equity round of funding in May, in a transaction that raised Global Equity Investment’s share in the company to 12.8%, from 7.6% previously. It later cut Global Equity Investment’s stake to 10.6%, according to a recent bourse disclosure (pdf).

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