Nakilat Profit Expands Alongside Fleet

Qatari LNG shipper Nakilat announced July 10 that first half net profit grew 7% year on year.

The company reported net profit of QR476mn ($130.8mn) for the first six months of the year, compared with QR445mn in 1H 2018.

The world’s largest shipper of the super-chilled fuel said the improved result was largely driven by fleet expansion on the back of increased trade of LNG. It stressed that under its long-term strategy, the acquisition of new ships continues.

Nakilat bought two new LNG carriers and one floating storage regasification unit (FSRU) in 2018, which are “among the main attributes to the positive financial results,” the company noted in a statement.

An increased volume of projects at its Erhama Bin Jaber Al Jalahma Shipyard facility also contributed, as did the “rationalisation of operational expenses,” it added.

Four more LNG carriers have already been purchased in 2019. The vessels are being built in South Korea under a joint venture with Maran Ventures. The acquisitions will affirm the company’s global leadership in energy transportation, Nakilat claimed. In March, the Qatari company said the additions will swell its fleet to 74 vessels, or about 11.5% of global LNG carrying capacity.

The expansion of LNG carrier fleets is in contrast with the oil shipping sector. The global expansion of liquefaction capacity, drawing new strength from recent project FIDs, is boosting confidence among LNG shippers.

 “The huge demand for cleaner energy supports LNG trade growth, hence increases demand for LNG shipping industry,” CEO Abdullah Al Sulaiti said. “Nakilat strives to meet the growing energy transportation needs by capitalising on the potential investment opportunity in promising strategic projects.”