Gulf Navigation Holding PJSC records AED 6.38 Million net profit for 1Q 2009

• Net profit of AED 6.38 Million for 1Q 2009 compared to 44.67 Million for 1Q 2008.
• Revenue of AED 81.87 Million compared to AED 94.84 Million for 1Q 2008.
• Total assets of AED 3.037 Billion.
• Two tankers have joined the fleet in 1Q 2009
• Two tankers will join the fleet this year

Dubai, 26th April 2009: Gulf Navigation Holding PJSC (DFM: GULFNAV) the regional's leader in Maritime and Shipping Services has announced a net profit of AED 6.38 Million for the first quarter of 2009 as compared to the AED 44.67 Million for the first quarter of 2008. The company’s revenues declined to AED 81.87 Million as compared to the AED 94.84 Million for the first quarter of 2008. Moreover the company’s total assets recorded AED 3.04 Billion.

The results were announced following a meeting of the Board of Directors held on 23rd of April 2009 at the company’s head quarter.

Commenting on the performance of first quarter performance, Engineer Abdullah Al Shuraim, the Chairman of Gulf Navigation Holding said "the first quarter of 2009 has been very tough and challenging for GULFNAV. In the last six months we have experienced extraordinary conditions and lowering demands as well as a big slump on chartering hires and we also have witnessed bankruptcies of shipping companies of repute such like Atlas Shipping AS which has all impacted our revenues and caused this fall by operating them in the dropped spot market”.

He went on to say “our open communication with our shareholders is imperative, our first quarter results today is consistent with our customary practice of providing open disclosure and transparency of which we are incessantly proud ”

EGR Al Shuraim added” there is no question that Gulf Navigation remains strong and in a very good position to seize the new opportunities being offered by the current exceptional circumstances. Shipping market has always been cyclical; we have lived through a number of economic and geopolitical crises. It is true that the current economic crisis is unprecedented in scope, but we believe that our great potentials we have had, the pool of talents, the efficient cost control, the solvent liquidity which excess AED 600 Million, the long chartering contracts of more than 50% of our fleet and the strong brand will enable us to emerge strongly than before. Challenging times provide opportunities for those who understand the market and are well positioned to act. Our driving force has always been and will remain our shareholders’ interests”

“We are cautiously optimistic about the outlook for the coming months, in spite of the disappointments of the last six months, we believe that we can now draw a line against the past, and we are keenly looking forward to the future ”

According to the chief executive officer Mr. Per Wistoft, the falls were mainly due to a general worldwide decline in demand for oil transportation and extended drydockings of two of the company’s vessels to which it must take place every thirty months.

Current situations have put downward pressure on tanker chartering rates that have so far declined more than 50% since the second quarter of last year.

Commenting on the company’s first quarter results, Mr. Per Wistoft the CEO of Gulf Navigation Holding said: “we have previously been forecasting that 2009 would be a tough year for international shipping, and the Q1 09 is evidencing that. We must however not forget that the earnings of five of our vessels are covered at respectable rates for the rest of the year and beyond. We shall additionally direct our energy towards optimizing earnings of the remaining vessels as well as our technical and administrative processes.”

“Navigating in a lower market is a challenge for everyone but will also create opportunities for a company like Gulf Navigation Holding.”

The official spokespersons said that the company will continue its growth throughout the year with the expected deliveries of the tonnage for the Stolt Nielsen Joint venture. In early 2009 Gulf Navigation Holding has added the new chemical tankers “Gulf Deffi”, “Gulf Jalmuda” to its fleet on 5thJan2009, and 3rd March 2009. The vessels have subsequently been delivered to International Shipping Company, a subsidiary of The Saudi Basic Industries Corporation (SABIC) on a fifteen year time charter.

Gulf Navigation Holding PJSC and its group companies own and operate crude, clean petroleum product and chemical tankers. It is an ISO 9001:2000 certified, Dubai-based and Untied Arab emirates Holding Entity with operations worldwide. It leads the shipping and marine services industry in the region. It has 11 specialized subsidiaries and owns 19 tankers and charters VLCC, Suezmax, Chemical, Product Tankers and crew boats. It is also the sole agency for a large number of global marine manufacturers and the only maritime and shipping company listed on the Dubai Financial Market.

Gulf Navigation Holding PJSC