2 days ago
GIS net profit rises 14% to QR408 million in H1 2025
Tribune News Network
Doha
Gulf International Services (GIS), one of Qatar's largest diversified services groups with operations spanning drilling, aviation, insurance, and catering, has reported a net profit of QR408 million for the six-month period ended June 30, 2025. The result represents a robust 14 percent increase compared to the QR356 million earned in the first half of 2024, underlining the Group's ability to capitalize on market opportunities and execute its strategic growth initiatives effectively.
Earnings per share rose to QR 0.219 in the first half of 2025, up from QR 0.192 a year earlier. Group revenue reached QR 2.47 billion, a year-on-year increase of 17 percent, while EBITDA expanded by a notable 31 percent to QR 802 million from QR 613 million in the first half of 2024.
Management attributed the improvement to strong performances across all major business segments, with drilling operations benefiting from recent rig acquisitions, aviation supported by growth in maintenance and flying services, and insurance boosted by new medical contracts.
The drilling segment delivered a standout performance during the first half of 2025, with revenue surging 36 percent year-on-year to QR 987 million and net profit climbing 56 percent to QR 141 million. Growth was primarily fueled by the full consolidation of revenues from Gulf Drill and Gulf Jack-Up, following GIS's acquisition of three high-specification jack-up rigs in 2024. Enhanced utilization levels across offshore rigs, lift boats, and barge operations further supported the strong results.
Operationally, the segment secured two major long-term contracts during the first half. One offshore rig, which completed its previous contract at the end of the second quarter of 2025, is undergoing preparation for redeployment under a new four-year contract with an optional three-year extension, beginning in the fourth quarter of 2025. Another offshore rig successfully renewed its contract for a five-year period.
These developments significantly strengthen GIS's revenue visibility and align with its strategy of sustainable growth and asset optimisation.
The aviation segment, operated through Gulf Helicopters Company (GHC), recorded revenue of QR612 million for the first half of 2025, up 7 percent from QR 571 million a year earlier. The increase was driven by robust performance in the Maintenance, Repair, and Overhaul (MRO) division, supported by third-party engine overhaul work, as well as higher flying hours across domestic and international operations.
A key development during the period was the successful renewal of a major domestic contract, ensuring long-term operational stability. On the fleet modernization front, GHC took delivery of two new helicopters in the first half of 2025, adding to the three received in 2024. One additional aircraft is expected before year-end, with four more scheduled for delivery after 2025 under the optional portion of the renewal program.
Despite revenue growth, net profit for the segment fell 6 percent to QR 176 million, primarily due to higher maintenance costs, increased consultancy expenses linked to aircraft acquisitions, and the absence of last year's one-off insurance recoveries.
Al Koot Insurance and Reinsurance Company, the Group's insurance arm, posted an 8 percent increase in revenue to QR 655 million in the first half of2025, aided by newly secured medical insurance contracts. The company also maintained its market leadership in Qatar's energy insurance sector, offering the largest capacity for mega-energy risks while expanding coverage in non-energy lines.
However, net profit declined 9 percent year-on-year to QR70 million, weighed down by higher claims in both medical and general insurance, along with increased staffing costs.
Progress continues on Al Koot's planned initial public offering (IPO) on the Qatar Stock Exchange. Financial and legal due diligence, as well as valuation exercises, are currently underway in collaboration with appointed advisors.
GIS's catering arm, Amwaj, reported a 6 percent increase in its share of revenue to QR216 million for the first half of 2025, supported by stronger performance in catering, support services, and food trading. The share of net profit rose by 32 percent to QR15 million, reflecting operational efficiencies and higher volumes.
While first-half results showed solid growth compared to last year, performance moderated in the second quarter. Group revenue slipped 1 percent to QR1.23 billion in the second quarter of 2025 from QR1.24 billion in the first quarter of 2025. Net profit fell 16 percent to QR186 million, mainly due to reduced activity in the drilling and aviation segments.
The drilling segment saw one rig go off contract in May 2025 ahead of redeployment later in the year, while aviation revenues declined after the completion of major third-party MRO work and the clearing of a maintenance backlog in the first quarter. The insurance segment, however, posted quarter-on-quarter gains in both revenue and profit, aided by higher earned premiums and fair value investment gains.
As of June 30, 2025, GIS held total assets of QR 11.7 billion, compared with QR 12.1 billion at year-end 2024. Cash and short-term investments stood at QR 0.9 billion, down from QR 1.2 billion, primarily due to dividend payments and loan repayments in the drilling segment. Total debt declined slightly to QR 5.4 billion from QR 5.6 billion.
GIS management reaffirmed its focus on securing long-term contracts, modernizing its aviation fleet, optimizing asset utilization in drilling, and strengthening its insurance offerings. The company expects these strategies to underpin sustainable growth and shareholder value creation in the years ahead.
The Group will hold an earnings call for investors on August 20 at 1.30 pm Doha time to discuss financial results, operational performance, and future plans.
