Qatar's Nakilat Sees 1Q Profit Down 20%

Qatari LNG shipowner Nakilat April 23 said its 1Q net profit fell by 20%.

Its net profit was Qatari riyal 191mn ($52.45mn) compared with Qatari riyal 240mn in 1Q2016; the lower profit is attributed to the effect of reducing the estimated scrap value of its older carriers, in addition to reduced operations of a few joint ventures.

“Despite the current economic downturn and market volatility, Nakilat has been continuously improving its operational activities which is demonstrated by the successful transition of two vessels in 1Q2017, bringing total vessels operated by Nakilat to 14 vessels to date,” sajd managing director Abdullah Fadhalah Al Sulaiti.

Nakilat began the process in October 2016 of a phased transition of the ship management of its LNG carrier fleet from Shell to Nakilat Shipping Qatar (NSQL), a wholly owned subsidiary. Shell has managed Nakilat’s LNG fleet since it was established in 2006. This has included the management of 14 Q-Max and 11 Q-Flex LNG carriers and sharing of Shell’s shipping and maritime expertise. 

This will be the world's largest transition of an LNG fleet operation, according to the Qatari firm. The 25 vessels have so far delivered over 320mn m³ of Qatar’s LNG to over 20 countries. 

Shardul Sharma