Qatar Navigation Q P S C : Year Q3 2023 Presentation

YTD Q3 2023 Financial Summary Conference Call

Doha, Qatar

October 23, 2023

Consolidated Income Statement - YTD Q3

(All amounts in QR Millions)

	2021	2022	2023
Operating Revenue	2,035	2,563	2,227
Salaries, Wages and Other Benefits	(454)	(472)	(469)
Operating Supplies and Expenses	(942)	(1,237)	(964)
Rent Expenses	(5)	(6)	(8)
Depreciation and Amortisation	(276)	(272)	(289)
Provision of Impairment of Trade Receivables	(13)	(25)	3
Other Operating Expenses	(153)	(127)	(96)
Operating Expenses	(1,843)	(2,139)	(1,824)
Operating Profit before Impairments	192	424	404
Impairment of Property, Vessels and Equipment	(12)	(86)	-
Finance Costs	(57)	(44)	(39)
Finance Income	23	11	14
Net Gain on Disposal of Property, Vessels & Equipmen	(5)	21	6
Share of Results of Associates	358	403	396
Share of Results of Joint Arrangements	153	122	97
Net Gain on Foreign Exchange	4	1	(0)
Tax for the Year	-	-	(7)
Non-Operating Profit	464	429	466
Profit for the Period	656	852	869
Non-controlling interest	(1)	(2)	0
Net Profit Attributable To Equity Holders Of The	654	851	870
Parent

Revenue		-13%
Operating Profit	-5%
before Impairments
Net Profit	2%
	%'s shown vs 2022
	2,563
2,035	2,227
			654	851	870
2021	2022	2023	2021	2022	2023
Revenue	Net Income
				2015

2

Activities by Segment

• Port Services
• Container Shipping
• Warehousing & Logistics
• Shipyard
• Shipping Line Agencies

• Vessel Charter & Operations
• Diving & Subsea Services
• Construction and Maintenance Services
• Well Services
• Harbor Marine Operations

• LNG Transport
• LPG Transport
• Floating Storage and
  Offloading (FSO) Operations

• Heavy Equipment and Truck Agency
• Bunker Distribution
• Marine Engine and Lubricants Agency
• Ship Chandlery

• Real Estate Development and Management
• Strategic and Financial Investments

3

Net Profit, by Segment - YTD Q3

(All amounts in QR Millions)

Unfavorable
Favorable	+8%

%'s shown vs 2022

506

469

412

+197%

	254	+132%
										201
128		153								139
-96%
									+101%	68
	9	66						(6)	0
		(18)
						(6)
Maritime & Logistics	Offshore	Gas & Petrochem	Trading	Capital
			2021	2022		2023

4

Statement of Income, by Segment - YTD Q3 2023

(All amounts in QR Millions)

	Maritime &		Gas &				Eliminations/
	Logistics	Offshore	Petrochem	Trading	Capital	Corporate	Adjustments	Consolidated
Operating Revenue	717	1,013	179	188	357	-	(227)	2,227
Salaries, Wages & Benefits	(248)	(74)	(22)	(13)	(16)	(97)	-	(469)
Operating Supplies & Expenses	(551)	(350)	(12)	(158)	(79)	(9)	195	(964)
Rent	(26)	(1)	(0)	(2)	(2)	(6)	29	(8)
Depreciation & Amortization	(27)	(169)	(37)	(1)	(53)	(2)	-	(289)
Provision of Impairment of Trade Receivables	6	(3)	2	(1)	(1)	-	-	3
Other Operating Expenses	(62)	(10)	(8)	(3)	(0)	(16)	3	(96)
Fleet & Technical Expense Allocation	219	(219)	(0)	-	-	-	-	(0)
Expense Allocation from Milaha Corporate	(84)	(16)	(8)	(9)	(13)	130	-	(0)
Operating Profit before Impairments	(56)	172	95	0	193	(0)	0	404
Impairment of Property, Vessels and Equipment	-	-	-	-	-	-	-	-
Finance Costs	(6)	(23)	(21)	-	(1)	-	12	(39)
Finance Income	-	5	13	0	7	0	(12)	14
Net Gain on Disposal of Property, Vessels & Equipment	0	6	-	0	0	0	-	6
Net Gain on Disposal of Investment Property	-	-	-	-	-	-	-	-
Share of Results of Associates	1	-	394	-	1	-	-	396
Share of Results of Joint Arrangements	71	-	26	-	-	-	-	97
Impairment of Available-for-Sale Investments	-	-	-	-	-	-	-	-
Net Gain on Foreign Exchange	(0)	0	(0)	(0)	(0)	-	-	(0)
Miscellaneous Income	-	-	-	-	-	-	-	-
Tax for the Year	(0)	(7)	-	-	-	-	-	(7)
Profit for the Period	9	153	506	0	200	0	0	869
Non-controlling interest	-	-	-	-	0	-	-	0
Net Profit Attributable To Equity Holders Of The Parent	9	153	506	0	201	0	0	870

5

Statement of Income, by Segment - YTD Q3 2022

(All amounts in QR Millions)

	Maritime &
	Logistics
Operating Revenue	1,094
Salaries, Wages & Benefits	(261)
Operating Supplies & Expenses	(702)
Rent	(31)
Depreciation & Amortization	(21)
Provision of Impairment of Trade Receivables	(9)
Other Operating Expenses	(56)
Fleet & Technical Expense Allocation	221
Expense Allocation from Milaha Corporate	(86)
Operating Profit before Impairments	147
Impairment of Property, Vessels and Equipment	-
Finance Costs	(4)
Finance Income	-
Net Gain on Disposal of Property, Vessels & Equipment	1
Net Gain on Disposal of Investment Property	-
Share of Results of Associates	2
Share of Results of Joint Arrangements	110
Impairment of Available-for-Sale Investments	-
Net Gain on Foreign Exchange	(1)
Miscellaneous Income	-
Tax for the Year	-

	Gas &
Offshore	Petrochem

909160

1. (17)

1. (22)

1. (0)

1. (40)

1

-

1. (10)

1. (6)

1. (10)

7854

• -

1. (27)

3

16

812

• -
• 403

-	13
-	-

10

• -
• -

Trading

244

(12) (223) (2) (1) (1) (2) - (10)

(7)

- - 0 0 - - - - 0 - -

Capital

425

(9) (170) (1) (51) (16) (9) - (17)

152

(86) (2) 7 - - (1) - - 0 - -

Corporate

-

(104) (9) (6) (1) - (22) - 143

0

- - 0 - - - - - (0) - -

Eliminations/ Adjustments

(268)

- 229 36 - - 3 - -

(0)

- 15 (15) - - - - - - - -

Consolidated

2,563

(472) (1,237) (6) (272) (25) (127) (0) -

424

(86) (44) 11 21 - 403 122 - 1 - -

Profit for the Period	254	66	469		(6)	70		(0)	(0)	852
Non-controlling interest	-	-	-	-		(2)	-	-		(2)
Net Profit Attributable To Equity Holders Of The Parent	254	66	469		(6)	68		(0)	(0)	851

6

Segment Performance - YTD Q3

(All amounts in QR Millions)

Maritime & Logistics

34% Decrease in Revenue and 96% Decrease in Net Profit

1. Operating Revenue decreased QR (377)m
2. • Container shipping rates plummeted vs the same period in 2022, in addition to container volume declines

1. Operating Expenses are down QR 173m
2. • Decrease in operating supplies & expenses tied to lower container shipping volumes
   • 15m swing in bad debt provisions related to successful recovery of outstanding debts

	2021	2022	2023
Operating Revenue	787	1,094	717
Salaries, Wages and Other Benefits	(268)	(261)	(248)
Operating Supplies and Expenses	(548)	(702)	(551)
Rent Expenses	(31)	(31)	(26)
Depreciation and Amortisation	(19)	(21)	(27)
Provision of Impairment of Trade Receivables	(5)	(9)	6
Other Operating Expenses	(62)	(56)	(62)
Fleet & Technical Expense Allocation	237	221	219
Expense Allocation from Milaha Corporate	(85)	(86)	(84)
Operating Expenses	(781)	(946)	(773)
Operating Profit before Impairments	6	147	(56)

o Non-Operating Income is down QR (42)m		Non-Operating Income/(Expense)	122	107		65
				Profit for the Period		128	254		9
	1,094	16	3	1
Shipyard	29 66	18			-4
Shipping Agencies								717
Ship Management
					-392		25	82
Container Shipping	754	Revenue Waterfall - 2022 vs 2023			19
								363
Logistics	226							229
	2022	Shipyard	Logistics	Ship	Shipping	Container		2023
				Management	Agencies	Shipping
						7

Segment Performance - YTD Q3

(All amounts in QR Millions)

Offshore Marine

12% Increase in Revenue and 132% Increase in Net Profit

	2021	2022	2023
Operating Revenue	702	909	1,013

1. Operating Revenue increased QR 105m
2. • Higher project income/margins and increased utilization of key diving assets, offset lower 3rd Party vessel chartering income
   • Full employment of Liftboat which was working partially in 2022

1. Operating Expenses are up QR (10)m
2. • -10mIncrease in Operating Supplies & Expenses from increased variable costs related to revenue growth, which more than offset lower chartering-in expenses from 3rd party vessels
   • 20m reduction in Other Operating Expenses mainly related to one- time reversal of VAT provision from 2021

Salaries, Wages and Other Benefits	(60)	(68)	(74)
Operating Supplies and Expenses	(184)	(340)	(350)
Rent Expenses	(2)	(1)	(1)
Depreciation and Amortisation	(155)	(157)	(169)
Provision of Impairment of Trade Receivables	(8)	1	(3)
Other Operating Expenses	(45)	(30)	(10)
Fleet & Technical Expense Allocation	(215)	(215)	(219)
Expense Allocation from Milaha Corporate	(14)	(20)	(16)
Operating Expenses	(682)	(831)	(841)
Operating Profit before Impairments	20	78	172
Non-Operating Income/(Expense)	(38)	(12)	(19)

o Non-Operating Expenses increased by QR (8)m mainly due to -7mtax	Profit for the Period	(18)	66	153
provision
	909	99	4	3	1,013
Services	229				328
Harbor Operations	64				66
		Revenue Waterfall - 2022 vs 2023
Vessel Chartering	616				620
	2022	Services	Vessel Chartering	Harbor Operations	2023
					8

Segment Performance - YTD Q3

(All amounts in QR Millions)

12% Increase in Revenue and 8% Increase in Net Profit

1. Operating Revenue increased by QR 20m
2. • Revenue increase from FSO (which became operational mid 2022) and one-off increase in LNG Vessels income, more than offset reduced revenue from Gas Carriers (we sold our last gas carrier in 2022 and exited business)

1. Operating Expenses are down QR 21m
2. • OpEx reductions coming from sale of gas carrier in 2022, and lower operational-related FSO costs incurred in 2022

1. Non-OperatingIncome down QR (4)m mainly due to lower Associates income

Gas & Petrochem

	2021	2022	2023
Operating Revenue	197	160	179
Salaries, Wages and Other Benefits	(16)	(17)	(22)
Operating Supplies and Expenses	(36)	(22)	(12)
Rent Expenses	(0)	(0)	(0)
Depreciation and Amortisation	(50)	(40)	(37)
Provision of Impairment of Trade Receivables	-	-	2
Other Operating Expenses	(12)	(10)	(8)
Fleet & Technical Expense Allocation	(21)	(6)	(0)
Expense Allocation from Milaha Corporate	(12)	(10)	(8)
Operating Expenses	(149)	(106)	(85)
Operating Profit before Impairments	48	54	95
Non-Operating Income/(Expense)	364	415	412
Profit for the Period	412	469	506

17

160

12

179

-10

LNG Vessels	136	Revenue Waterfall - 2022 vs 2023	148

Gas Carriers		10
FSO	14				32
	2022	FSO	LNG Vessels	Gas Carriers	2023

9

Segment Performance - YTD Q3		Trading
(All amounts in QR Millions)
23% Decrease in Revenue and 101% Increase in bottom line			2021	2022	2023
Operating Revenue	249	244	188
o Decreased sales of bunker and heavy equipment were more than offset	Salaries, Wages and Other Benefits	(9)	(12)	(13)
by higher margins from ship chandlering and other marine-related
	Operating Supplies and Expenses	(231)	(223)	(158)
products				Rent Expenses		(1)	(2)	(2)
				Depreciation and Amortisation	(1)	(1)	(1)
				Provision of Impairment of Trade Receivables	0	(1)	(1)
				Other Operating Expenses	(3)	(2)	(3)
				Expense Allocation from Milaha Corporate	(9)	(10)	(9)
				Operating Expenses	(255)	(250)	(187)
				Operating Profit before Impairments	(7)	(7)	0
				Non-Operating Income/(Expense)	0	0	0
				Profit for the Period	(6)	(6)	0
	244	15
			-4
							188
Bunker Sales	162				-67
							95
		Revenue Waterfall - 2022 vs 2023
Equipment Trading Agencies	44						40
Marine Sales & Service	37						52
	2022	Marine Sales		Equipment	Bunker Sales		2023
		& Service	Trading Agencies
					10