Qatar Navigation (Milaha) Q.S.C. announced that its Ordinary General Assembly, in its meeting on April 15, 2012 approved the company’s audited financial results for the year ended 31 December 2011, one of the items on its agenda.
The General Assembly ratified all the remaining items on its Agenda including the proposal by the Board of Directors to distribute a cash dividend of 35% of the face value per share. The General Assembly also approved the appointment of Ernst & Youngas external auditors for the year 2012.
During the General Assembly meeting, HE Sheikh Ali bin Jassim bin Mohammad Al Thani, Chairman of Milaha’s Board of Directors presented an overview of the company’s activities and financial results for 2011 along with highlights of business plans for the year 2012. The Chairman stated that “2011 was an exciting and challenging year for Milaha, one in which the company maintained a clear focus on the day-to-day business to navigate the largest ever global downturn in this industry while at the same time undertaking the most transformative effort in the company’s 54 year history. This was an extremely difficult balancing act made possible by the tremendous efforts of Milaha’s leadership team and colleagues. ”
HE Sheikh Ali stated “It was a difficult market environment for almost all shipping segments, and while the markets were not as depressed as in 2009 and 2010, we’re still in the middle of the sharpest and most sustained downturn in shipping in many decades. Despite the difficult markets, through Milaha’s determined focus on its operations and its diversified portfolio, which the company continues to view as a competitive advantage, Milaha managed to achieve virtually an equal net income on a normalized basis in 2011 versus 2010.” Net Profit for 2011 reached QR 711 million, total assets reached QR 13.3 billion, total equity QR 10.6 billion and earnings per share at QR 6.21. Shareholders can review the company’s financial statements for more information.
During the meeting, the Chairman provided shareholders with detailed answers with regards to all questions raised.
At the conclusion of the AGM, the General Assembly elected the following Board of Directors for the next three-year term from 2012 to 2014: HE Sheikh Ali bin Jassim bin Mohammed Al-Thani, Chairman of the Board and Managing Director; HE Sheikh Khalid bin Khalifa Al Thani representing Qatar Petroleum, as Vice Chairman; HE Sheikh Jassim bin Hamad bin Jassim Al-Thani, Mr. Saad Mohammad Al-Rumaihi, Mr. Hamad Mohammad Al-Mana, Mr. Adel Ali bin Ali representing Ali Bin Ali Organization, Hetmi Ali Al-Hetmi, Dr. Mazen Jassim Jaidah, Mr. Ali Ahmad Al-Kuwari, Mr. Sulaiman Haidar Sulaiman and Mr. Ali Hussain Al-Sada, as members of the Board. Mr. Salem Butti Al-Naimi will remain as a Board member in reserve.
As part of the Extraordinary Meeting, the General Assembly approved the Board of Directors’ recommendation to increase the company’s capital from QR 1,145,252,000 to QR 1,374,302,400 equivalent to 20% through the issuance of 22,905,040 new shares offered for public subscription giving priority to the company’s existing shareholders. The General Assembly authorized the Board of Directors to consult an investment bank or independent expert to review the recommended price of QR 57 per share including the nominal value of QR 10 per share and a premium of QR 47 and confirm that the suggested price is reasonable. The objective of the capital increase is to fund Milaha’s growth plans in its core businesses in the coming years as well as maintain a better working capital ratio.
After the acquisitions of Qatar Shipping and full ownership of Halul Offshore Services in 2010, the company undertook a comprehensive effort to review the entire group’s operations and redefine Milaha’s long-term strategy. Determined to strengthen its core and build a platform for growth, Milaha launched a strategic transformation program. The scope of this transformation is vast and includes a comprehensive reorganization; revamp of the management governance framework; a re-branding; revision of core business processes and supporting IT systems; and enhanced performance management initiatives.
The group has a new vision and mission aimed at strengthening our core business and accelerating growth, resulting in a new name, Milaha, and a new goal of being recognised as a major player in the global shipping industry beyond the boundaries of our region.
The result is a company focused on providing world-class maritime and logistics services. To leverage the capabilities across the group and improve our focus on customers, Milaha reorganised its businesses into six strategic business pillars – Milaha Maritime & Logistics, Milaha Gas, Milaha Petrochem, Milaha Trading, Milaha Offshore and Milaha Capital. Additionally, the company created a new corporate entity to focus on facilitating the group’s strategic direction and implementing and managing policies across the units.
The expected growth of the company requires a strong, stable and effective support infrastructure. Over the course of 2012 and beyond, Milaha will work to enhance its support infrastructure in line with world-class practices and to ensure that the business segments are on the path of sustained growth into the future. With its strong financial position and diversified business segments, the company remains positive regarding its outlook for 2012 and for the future years.
Dividend distribution will commence starting May 1, 2012 through all of Qatar National Bank (QNB) branches. QNB has been appointed official Dividend Distribution Agent and will provide dividend distribution, dividend account administration and other administrative support services to ensure shareholders have easier and more efficient access to their earned dividends.