Milaha (QNNS) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended September 30, 2024, rose 5% year-over-year to QR 917 million, with a strong Q3 recovery, despite a 4% decline in operating revenues to QR 2,131 million.

• Segment results were mixed: Gas & Petrochem and Capital posted higher profits, while Maritime & Logistics, Offshore, and Trading saw declines.

• Earnings per share increased to QR 0.81 from QR 0.77 year-over-year.

• Total comprehensive income dropped to QR 595.5 million from QR 872.5 million due to significant other comprehensive losses.

Financial highlights

• Operating profit increased to QR 445 million from QR 404 million, a 10% rise year-over-year.

• Net profit attributable to equity holders was QR 917 million, up from QR 870 million year-over-year.

• Non-operating profit increased slightly to QR 470 million.

• Significant one-time gain of QR 1,957 million from disposal of property, vessels, and equipment.

• Total assets stood at QR 18.58 billion as of September 30, 2024.

Outlook and guidance

• Container shipping rates expected to remain under pressure due to global demand and new vessel supply, but new China services may provide uplift.

• Offshore segment anticipates long-term growth from Qatar's oil and gas expansion, with stable revenue expected in harbor operations.

• Gas & Petrochem expects stable earnings from long-term contracts, except for the volatile VLGC/LPG JV.

• Trading and capital segments will focus on margin improvement, profitable growth, and yield enhancement.

• Management notes that nine-month results are not necessarily indicative of full-year performance.