Qatar Shipping Company (Q Ship), which is emerging as a major LNG ship owning and operating company in the Middle East with participation in several companies, is expected to maintain its profitability in 2002 despite depressed freight rates.

The company reported a net profit of QR36.7 million ($10.08 million) in first-half 2002 and said it would go ahead with its fleet expansion. Net profits for the whole of 2000 and 2001 were QR72.2 million and QR103.1 million respectively. GCC individuals hold 57 per cent of Q Ship's shares with Qatar Petroleum having 15 per cent, Qatar National Navigation and Transport Company (QNNTC) 16 per cent and other companies and establishments 12 per cent.

The company has firm shares in five LNG carriers of 138,000cbm, holding 15 per cent shares jointly with Gujarat LNG Transport Company and India LNG Transport Company, each of which will have one carrier; 20 per cent interest in one carrier with Qatar LNG Transport and 25 per cent interest in two carriers, one each with Camartina Shipping and K/S Membrane. The vessels it will own with the Indian companies are to be delivered in 2003, while the delivery time for the other vessels is 2004.

Q Ship has been also invited to participate in 4 LNG vessels of 138,000 cbm for the proposed movement of LNG from Qatar to Edisson, Italy. All the LNG vessels upon delivery will have 20 to 25 years of time charter to RasGas, QatarGas and Petronet India Limited (in the case of India-Gujarat LNG Transport Co. Ltd.).

With the forthcoming proposal of transportation of 10 million tonnes per year of LNG to United Kingdom from Qatar, Q Ship is expected to expand its participation in 10 to 15 LNG vessels.

Each LNG vessel costs about $188 million with a time charter rate of about $62,000 to $68,000 per day. This makes Q Ship a most attractive shipping company in the Middle East and one with tremendous growth potential.

Q Ship has 100 per cent ownership in 15 vessels Ñ crude carriers, product carriers, oil ore bulk carriers, tugs and pilot boats. Of these, three product carriers and one berthing tug are to be delivered in 2003.

The company has 50 per cent ownership of two crude carriers with Exxon Mobil and 50 per cent ownership of 13 vessels with Qatar Navigation and Transport Company. These are safety/standby vessels, dynamic positioning vessels and anchor-handling tugs among other boats

The company has 100 per cent ownership of an LPG carrier of 22,500cbm, which will be delivered in 2004.

Japanese and Korean yards are primarily chosen for the main fleet of crude carriers, product tankers and gas carriers. The offshore and harbour fleet has been primarily contracted to the Chinese and Indian yards.

Q Ship's crude carrier fleet is balanced between long-term time charter/bareboat contracts and period time/spot voyage charters. The product carriers are preferred to trade in spot period/voyage charters. The LPG vessel upon delivery will trade on long-term time charter to Qatar Fertiliser Company. Q Ship is also engaged in transportation of iron ore on a contract of affreightment with Qatar Steel Company. The LNG tankers upon delivery will be time chartered for 20 to 25 years to charterers like RasGas, QatarGas and Petronet India Limited.

Q Ship's offshore and harbour fleet is time chartered primarily to QP and its subsidiary on a long-term basis ranging from 5 to 10 years with options of further increase in periods.

Q Ship has a 50 per cent involvement with QM Tanker Company in owning and operating two Aframax tankers and another 50 per cent involvement with Halul Offshore Services Company for owning and operating a fleet of offshore vessels. It has a 20 per cent interest in Qatar LNG Transport Company, which owns and operates a 138,000cbm LNG vessel, and holds a 51 per cent share in Qatar Engineering and Technical Company which undertakes O&M contracts in refinery and petrochemical plants as well as works as EPIC contractor.