Gulf International Services (GIS) - the umbrella organisation of Gulf Drilling International, Gulf Helicopters, Al Koot and Amwaj - is in continuous discussion with different key stakeholders to restructure its debt.
Highlighting that the current levels of debt continue to weigh on the group's net earnings, the company said finance cost is one of the key cost elements, and specifically limits the drilling segment’s ability to accomplish its desired profitability.
"GIS management is in continuous discussion with different key stakeholders to restructure the debt with an aim to provide greater flexibility to manage liquidity and ease pressure on the group’s financial position," it said, highlighting that total debt at the group level stood at QR4.29bn at the end of June 30, 2022.
The drilling segment saw new contracts being won in Saudi Arabia and Maldives for liftboats, building international footprints for the segment, while enhancing asset utilisation, as both the liftboats remained operational throughout the second quarter of 2022.
This was in addition to continued positive impacts on the segment’s performance for the first half of 2022, from new rig day-rates for the offshore fleet applied starting from the mid of last year and redeployment of two previously suspended onshore rigs during the third quarter of 2021.
The segment had successfully renewed contracts for certain offshore rigs with an extended term ranging from two to five years, improving segment’s future financial position.
During the second quarter of 2022, international operations of its aviation segment witnessed further growth from Angola’s contract revision with better terms on account of better asset utilisation.
An aircraft was mobilised to the Angolan fleet from the Qatari fleet to cover the additional flying hours as per the new contract. Also, another aircraft was mobilised to the Turkish fleet from Qatar to meet the upcoming increased demand from the market.
The insurance segment managed to build up its strong performance by further expanding its general line of business. However, the medical insurance business witnessed loss of certain contracts.
"Efforts are underway to explore new opportunities within domestic retail and small and medium enterprises markets. Performance of the segment investment portfolio remained wavered due to volatilities in capital markets," the company said.
The catering segment improved its performance on the back of realisations from the new contract won during last year.
Additionally, certain contracts have been renewed within the manpower segment, with broader scope improving overall service volumes for the segment.
Moreover, the segment was able to demonstrate improved performance, as industry specific pandemic-linked restrictions gradually started to subside.