Doha [Qatar], October 30: Gulf International Services (GIS) returned to profitability in the third quarter of 2026 as drilling and aviation operations recovered, reporting a net profit of QR145 mn for the nine-month period ended September 30, 2026.
The Group recorded revenue of QR3.5 bn during the first nine months of the year, while earnings before interest, taxes, depreciation and amortisation (EBITDA) reached QR685 mn, representing an EBITDA margin of 20%. Earnings per share stood at QR0.078, compared with QR0.309 in the corresponding period last year.
GIS's performance improved in the third quarter following the resumption of operations at all temporarily suspended offshore rigs by the end of June and the return to service of most aircraft affected by suspensions during the first half of 2026.
The Group recorded a net profit in the third quarter, compared with a net loss in the second quarter, supported by higher revenue from the drilling and aviation segments. However, the results were partly affected by a QR68mn customs-related charge in the aviation segment and lower investment income in the insurance segment amid weaker capital market conditions.
For the nine-month period, the Group's revenue declined year-on-year, primarily due to reduced contributions from drilling and aviation. Profitability was affected by drilling losses, lower aviation earnings amid the regional conflict, the customs-related charge and weaker insurance profitability due to higher net claims in the medical insurance business.
The drilling segment's operations normalised by early third-quarter 2026, with all previously suspended offshore rigs returning to service, while onshore activities remained stable.
During the quarter, three jack-up rigs secured contract extensions with an existing client for periods of up to four years, supporting asset utilisation and providing greater revenue visibility over the medium term. However, a leased offshore jack-up rig from an international shipyard went out of contract during the quarter.
Despite the quarterly recovery, the drilling segment recorded lower revenue for the nine-month period compared with the previous year. The decline reflected the temporary suspension of several offshore rigs between March and June, some onshore rigs remaining off contract, the expiry of a leased rig's contract and reduced activity in the lift boats and barge business due to scheduled maintenance.
The segment reported a net loss for the nine-month period as lower revenue and asset utilisation weighed on performance.
On a quarter-on-quarter basis, however, it returned to net profit in the third quarter, driven by higher revenue following the resumption of offshore operations.
The aviation segment also recorded a recovery in the third quarter as most aircraft returned to service, restoring domestic flying activity towards regular operating levels.
Revenue increased quarter-on-quarter, while profitability improved when excluding the customs-related charge recognised during the quarter. The segment's nine-month revenue remained below the previous year's level, reflecting reduced domestic flying hours during the first half and weaker performance in its maintenance, repair and overhaul business, particularly lower spare parts sales.
Stronger international operations, supported by increased revenue contributions from Libya, partially offset the decline. Nevertheless, the segment's net profit fell year-on-year due to lower domestic activity, an elevated cost base, the customs-related charge, foreign exchange movements and inflation-related accounting impacts in international operations.
The insurance segment, operated by Al Koot Insurance, recorded strong revenue growth during the nine-month period, supported by expansion across its medical and general insurance businesses. Growth reflected earned premiums from major policies secured in the previous year, contract renewals and new business.
However, net profit declined moderately year-on-year as higher direct costs, particularly in medical insurance, weighed on earnings. Improved investment portfolio performance partially offset the impact.
In the third quarter, insurance revenue declined marginally following the expiry of certain general insurance policies. Lower insurance and reinsurance expenses improved the gross margin, while reduced investment income amid weaker capital markets affected net profit.
The catering segment, operated by Amwaj, recorded modest revenue growth, supported by higher man-days, the mobilisation of new contracts and the continued expansion of catering services. However, higher food and operating costs, partly reflecting logistical constraints, weighed on profitability. The segment's share of net profit declined marginally year-on-year, although both revenue and net profit improved quarter-on-quarter in the third quarter.
GIS maintained a robust financial position, supported by a strong asset base and healthy liquidity.
The increase in cash balances during the period was primarily attributable to improved working capital, partly offset by dividend payments relating to 2025 and a reduction in net borrowings.
The Group's board also approved the reconstitution of its Board Nomination, Remuneration and Incentives Committee, with Saad Rashid Al-Muhannadi as chairman and Mohammed Yousef Al-Mulla and Essa Matar Al-Kuwari as members.
GIS will host an investor relations earnings call on November 5, 2026, at 1:30pm Doha time to discuss its latest financial results. The accompanying presentation will be made available on the financial information page of the Group's investor relations website.
Source: Qatar Tribune
