By: Eman Ghaly

Mubasher: Qatar National Bank (QNB) Financial Services on Monday announced a 5% growth expectation in Qatar Gas Transport's (Nakilat) operating performance for the full-year 2018.

Nakilat’s operating performance may also increase by 6% during 2019, according to QNB Financial Services’ report.

The brokerage arm of the largest bank in the Middle East and Africa maintained Nakilat’s price target at QAR 21.

“We continue to favor Nakilat, #1 owner/operator of LNG vessels globally, as a LT play geared to Qatari LNG’s dominance and growth. We believe the stock is attractive at current levels,” the report highlighted.

Nakilat’s net profits rose 4.8% to QAR 227.96 million for the second quarter of 2018, compared to QAR 217.49 million in the same period a year earlier.

For the first half of 2018, the firm's net profits levelled up 4.8% to QAR 444.66 million, from QAR 408.89 million in H1-17.

Expectations

“Nakilat expects JV income to benefit from higher utilisation of its shipyard given dry dock activities and marine & offshore projects. Finally, QGTS expects growth in its marine services segment at Ras Laffan and Mesaieed ports due to increased port calls post the blockade,” the report added.

Since 5 June 2017, Qatar has been facing outflows of foreign customers' deposits after four Arab countries led by Saudi Arabia cut their diplomatic and trade ties with the gas-rich state, accusing Qatar of financing terrorism. Doha forcefully denies the charges    

Moreover, QNB Financial Services expected an increase in Nakilat’s total net profits by 0.3% to QAR 2.36 billion by the end of 2018, versus QAR 2.35 billion during the full-year 2017.

Meanwhile, the company’s assets are projected to record QAR 29.65 billion by the end of this year, compared to only QAR 26.96 billion in the year before.

Assets are also forecast to register QAR 28.95 billion and QAR 28.29 billion during 2019 and 2020, respectively, according to the report.

By 01:14 pm Qatar time, Nakilat’s declined 0.69% at QAR 15.84.

Translated by: Kholoud Mohamed Hussein