Gulf Navigation Holding (Gulf Nav) has seen its profit for 2016 spike as its financial turnaround efforts intensify.
The Dubai-listed company reported net annual earnings of AED 136.6m ($37.2m), against AED 20.2m in 2015.
This figure was boosted by liabilities worth AED 107.8m that no longer require to be written back.
Gulf Nav saw its operating revenue decline from AED 134.7m to AED 129.5m despite an improvement in chemical tanker spot rates.
Khamis Juma Buamim, chief executive for Gulf Navigation, said: “The financial results for 2016 is a testament to the success of our continuing efforts to transform Gulf Nav into one of the most innovative and competitive players in the shipping sector.
“Further improvement in chemical tanker spot rates specifically contributed to the increased margins along with further rationalization of our cost structure.”
Gulf Nav has made its comeback through newbuilding deals and a series of strategic alliances.
“We have also achieved giant strides in resolving a number of legacy issues which we expect to be fully resolved in the coming period,” Buamim added.
Gulf Nav’s management intends to focus on completing negotiations with remaining counter-parties at the same time as securing waivers and correcting its working capital gap.
