Qatar Shipping Company’s (Q Ship) first-half 2004 net profit of QR132.51 million ($36 million) puts it on track to exceed its financial performance during the whole of 2003.

The first-half figure was well above the net profit of QR100.7 million for the corresponding period of 2003. The company had reported a net profit of QR187.6 million for full-year 2003, up 132 per cent over the previous year.
Year 2003 profits were bolstered in part because of significant increases in the freight rates of crude oil and product tankers, the average earnings of the former going up by 76.5 per cent while the latter saw earnings rise 57.2 per cent.
“A buoyant freight market in 2003, deployment of newly acquired product/chemical carriers  (Alnoman, Jinan and Dukhan) at increased freight rates, the sale of the vessels Hassbat Qatar and Danat Qatar at a profit and a record return from our investment portfolio had an extremely positive impact on the annual income and net profit of the company for the year,” said Al Naimi.
Among the significant events of the year was the finalisation of five LNG transportation agreements and two LNG ship management agreements. To date nine LNG transportation contracts have been signed.
The company also signed a $220 million shipbuilding contract with Hyundai Heavy Industries, South Korea, for the construction of six Aframax tankers, each of 105,390 dwt and all of which are to be delivered by the end of June 2006.
The three product/chemical carriers, which it took delivery of, have been chartered to oil majors including ExxonMobil, Chevron Texaco, Shell and QP.
Q Ship has ordered two 23,000 cbm LPG carriers at STX Shipyard in South Korea for transporting ammonia for Qafco. One has been delivered.
The company has also signed an MoU with Iino Kaiun Kaisha Ltd and Mitsui & Co of Japan to promote shipments of chemical parcels from Qatari industries including Qatar Vinyl Company.
During 2003, Q Ship owned and operated a deep-sea fleet comprising 10 vessels with an aggregate tonnage of 822,877 dwt. Four were Aframax vessels and four chemical carriers while the remaining two were those that were sold in the second half of the year. Vessels controlled by the company transported 7.22 million tonnes including 6.7 million tonnes of crude and fuel cargo and 519,903 tonnes of iron ore pellets. The pellets volume was double that of the previous year.
Q Ship has commenced providing the services of a tanker-berthing tug to Halul Offshore Oil Terminal of Qatar Petroleum under a two-year contract. This is in addition to the existing harbour towage services being provided with the use of four tugs and two pilot boats.
With the acquisition of the Marine Fabrication Yard from Mannai Marine, Q Ship expects to gain access to the large offshore construction and maintenance market in Qatar and adjoining states.
Included in the profits was QR16.33 million, emanating from Halul Offshore Services Company, a 50:50 joint venture with Qatar Navigation.  Halul Offshore Services works on long-term contracts with QP and other private exploration and production outfits in Qatar, among them Occidental Petroleum.
One of the company’s subsidiaries, Qatar Engineering and Technology Company, was awarded a subcontract for the mechanical construction of a power plant for Qatar Petroleum at Halul Island.  Q  Ship owns 51 per cent of the stake, with an India-based company, Aban, holding the remainder stake.