Qatar Navigation has reported a net profit of QR 1253 million (US$344 million) for the period ending 30/09/2010 which includes two one-time gain items. QR 236 million was realized as a fair value gain on account of Qatar Navigation's holding of 15% share capital of Qatar Shipping prior to the acquisition. QR 397 million was realized as a gain resulting from the negative goodwill representing the difference between the price of acquisition and the net fair value of the assets of Qatar Shipping. This gain was determined upon the conclusion of the purchase price allocation report that was completed by an independent international audit firm in the third quarter. Earnings per share after the acquisition amount to QR 10.94 and the company's capital is QR 1145 million.
"In spite of the slowdown in the global economy and its effect on freight volume and prices, the company was able to achieve strong results due to its diversified activities and strategic investments," said Qatar Navigation Chairman & Managing Director, Sheikh Ali bin Jassim bin Mohammed Al-Thani. He attributed the positive financial results and achievements of the company during that period to the strong fundamentals and core values of the company in achieving its goals and for its contribution to the economic development in the country. Qatar Navigation aims to maximize profits and shareholder value.
Mr. Khalifa bin Ali Al Hitmi, Qatar Navigation's Chief Executive Officer stated that the company's policy of diversifying sources of income, the strength of the Qatari economy and the proactive nature of Qatar's government enabled the company to overcome the financial implications of the crisis and achieve good results. The company owns a prestigious and illustrious real estate portfolio, including Qatar Navigation Tower, which was recently leased to Qatar Gas for ten years.
He announced that Roland Berger Strategy Consultants have been appointed by Qatar Navigation to develop a long-term strategy and restructure the company by evaluating and assessing existing and potential business segments and to benefit from the recent acquisition of Qatar Shipping. The first phase of this project is expected to be completed at the end of the first Quarter of 2011.
On a final note, Qatar Navigation has moved to its new headquarters at Al Jazeera Tower, situated in the West Bay area, equipped with the latest in technology and communications.