Repair costs and investment in new vessels has seen net profits for the first nine months of the year fall at Gulf Navigation Holding, the Dubai-based chemical and oil shipping firm.
Repair costs hit Dubai shipping firm profits
Gulf Navigation Holding, the Dubai-based chemical and oil shipping firm, said net profits for the first nine months of the year fell 28.6 per cent to Dh8.3 million (US$30.4m) compared with the same period a year ago.
The fall in profits was partly attributed to higher costs for its Gulf Scandic vessel which was repositioned from Africa to Singapore. Gulf Navigation also booked extensive amortisation and repair costs for this vessel in the third quarter as well as repair work for several of its probos vessels, which can carry chemicals and dry cargo.
The shipping firm is increasing its fleet with four vessels under a joint venture with Stolt Nielsen. It also plans to purchase three new crude carriers, with at least one expected to enter service in the fourth quarter.
"We expect to see the positive impact of the five ships on our earnings in the coming quarter, and their full contribution to our bottom line next year and the years after," said Abdullah al Shuraim, the chairman of Gulf Navigation.