Nakilat Profit Slips, As It Ponders Fleet Fuel Switch

2 Nov 2012 Issue: 55 / 45

Nakilat reported a lower third quarter profit, but this was primarily on an accounting technicality. The company continues to mull switching its LNG fleet to run off gas, and is moving forward with a long-term plan to assume management of its ships from current operator Shell.

Qatar Gas Transport Company (Nakilat), the world’s largest LNG shipping company, saw third quarter profits fall to QR181.40mn ($49.8mn) from QR243.80mn ($66.9mn) in 3Q11. For the first nine months of the year, the Qatari company reported a QR562.4mn ($154.5mn) profit, compared to QR 624.2mn ($171.5mn) in 2011.

Since the results were announced on 22 October, Nakilat’s share price on the Qatar Exchange has edged down from QR15.76 ($4.3) and was at QR15.55 ($4.27) on 1 November. This is off around 10% from year ago levels. As of the end of October, the company’s market capitalization was QR8.7bn ($2.39bn) and its share price to earnings ratio (P/E) stood at 11.31. (CONTINUED - 941 WORDS)