UAE shipping firm posts Q1 loss amid fleet upgrade

Shipping firm Gulf Navigation Holding, which has recently taken on a major new investor and new board of directors, on Wednesday announced losses for the first quarter of 2019.

The Dubai Financial Market (DFM) listed company recorded losses of AED11 million, compared to profits of AED5 million during the same period last year.

During Q1, Gulf Navigation achieved 29 percent growth in operating income to AED45 million and enhanced its fleet with the acquisition of livestock carriers.

The company attributed the Q1 loss to the fact that its last petrochemical tanker entered the dry dock for the mandatory special survey work and installation of scrubber in order to meet IMO regulation 2020, losing its rental revenue during this maintenance period.

The company’s financial results also showed a slight increase in the cost of financing due to new loans obtained during the second half of the year 2018.

The announcement of the financial results follows Goldilocks Fund becoming a new investor with acquisition of a 18.32 percent stake as well the appointment of a new board of directors led by Saeed Mubarak Al Hajeri.

Gulf Navigation has a fleet of six petrochemical tankers and four livestock transport vessels.

The company said it will continue to expand and develop its business through a strategic plan that is integrated with the UAE’s vision to establish a national maritime industry cluster that will position the country as one of the world’s most significant maritime hubs.

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