UAE-based Gulf Navigation Holding (GNH) had incurred a 19 per cent operating revenue growth by the end of the third quarter of 2019 (Q3 2019), compared to the same period last year.
The company recorded an operating revenue of AED 130 million (US$35 million) compared to AED 109 million (US$29 million) in the same period of 2018. The company reported a net loss of AED 18 million (US$5 million) in Q3 2019, bringing total losses in the first nine months of 2019 to AED 46 million (US$12.5 million).
The decline in the company’s financial performance has been attributed to the high operating costs of vessels coupled with lower asset utilisation in the quarter.
GNH has successfully completed the 10-year special survey and ballast water treatment installation program on its four vessels that are chartered to SABIC. After a period of underutilisation, the company has now managed to secure spot and long-term charters for all nine vessels.
On the cost structure front, the company has restructured its operations and reorganised its subsidiaries to ensure continuity of its operations and enhanced its productivity at the lowest possible costs for the near future.
GNH is also looking to outsource its ship management function to optimise its cost structure and enhance governance.
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