GIS to invest QR1.5bn to improve efficiency

06/03/2018 05:57 AST

Gulf International Services (GIS) has announced plans to make a huge capital expenditure in the coming years. The company, which is the largest services group in Qatar, will be investing QR1.5bn over the next five years, the Chairman of the Board of Directors of GIS, Sheikh Khalid bin Khalifa Al Thani said yesterday.

Much of these investments are aimed to respond to improving the efficiency and reducing operating costs so that the group will continue to remain competitive.

"The capital expenditure relating to the new opportunities arising from the potential growth strategy implementation will be assessed on a case-by-case basis, the details of which will be made available to shareholders," Sheikh Khalid noted in his address at the group's Annual General Meeting held yesterday.

Commenting on the company's future performance, he added: "I am optimistic about the future performance of GIS in the medium and long run. There are a number of opportunities which are potentially available to GIS in the immediate future."

Some of the important job opportunities GIS is banking upon include additional drilling requirements and aviation services with Qatar Petroleum's (QP) recent plans to develop the North Field; new drilling services arising from the commencement of operations of QP's new joint venture, North Oil Company among others.

GIS is one of the largest companies in Qatar with interests in a broad cross-section of industries, ranging from insurance, re-insurance, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services.

Sheikh Khalid also noted that Al Koot, an insurance arm of the GIS, is now better equipped to provide a broader insurance services as the government is considering the provision of health insurance to the Qatari citizens via private insurers.

The GIS shareholders approved all the items on the agenda of the meeting, including the Board of Directors recommendation for no dividend distribution for the 2017, as it intends to use the funds for investment opportunities identified in the Company's growth strategy; where GIS will deploy the retained funds to invest in the group's activities, capturing the growing demand locally and internationally.

GIS reported a net profit of QR85m for last financial year ended December 31, 2017, up by 27 percent compared to previous year. For the period from the initial public offering in February 2008 to 2016, the group's shareholders have received accumulated cash dividends of QR2.6bn, which is equivalent to circa QR14.2 per share, with an average payout ratio of approximately 55 percent. In addition, shareholders have received a total of 63 million additional shares through three bonus issuances.

The Peninsula