GIS reports QR3bn revenue in 2020 19 Feb 2021 - 10:08 The Peninsula Gulf International Services (‘GIS’ or ‘the Group’), one of the largest diversified service groups in Qatar with interests in oil and gas drilling, insurance, helicopter transportation and catering services, yesterday reported a net loss of QR319m for the year ended December 31, 2020. Group’s revenue for the year ended December 31, 2020 amounted to QR3bn, and remained at the same level of last year. Revenue growth from the aviation and insurance segments was entirely offset by reduction in revenue from the drilling and catering segments. 2020 was a challenging year for the Group companies, as the oil and gas industry witnessed severe volatilities coupled with the global economic downturn amid COVID-19 outbreak, and created another layer of downward pressures, while the Group companies were relentlessly working to recover from the previous down cycle within the oil and gas industry. These unprecedented external factors led to significant cuts in oil and gas exploration, production and maintenance activities across the globe and negatively affected the Group entities in terms of operational and financial performance for the year. Moreover, impairment of assets within the drilling and aviation segment, has also contributed significantly to the Group’s net losses for the year ended 31 December 2020. The decision of the assets impairment was taken after taking into consideration the age and technical capabilities of those rigs and aircrafts and future marketability for those assets. Excluding the impact of one-off, non-cash impairment losses, the Group’s bottom line profitability reached to a net loss of QR10m for the financial year 2020. In light of the momentous macro challenges, demand for the drilling rigs worldwide has fallen drastically amid projects deferrals or cancellation, which in turn led to a reduction in rates of rigs, globally. Consequently, days-rates at Gulf Drilling International (GDI) level were also negatively affected and were re-priced. This was coupled with modification of contract terms and temporary rig suspension, specifically within the on-shore fleet, negatively impacting the overall performance of the segment. However, despite the underlying external factors, which remains out of the segment’s control, GDI placed efforts to withstand these challenging conditions in order to mitigate the business and operational risks. The segment made continuous efforts to optimize cost in all possible areas of business, to provide financial flexibility, while ensuring that safety and performance standards are not compromised. Additional rigs are expected to commence operations in various phases during first half of 2021, which will unlock solid future growth opportunities for the segment