The spinoff of GIS from QP in 2008 was unfortunately followed several months later by the start of the global financial crisis. Inevitably, this has impacted on the firm’s financial performance. The company posted a 13 per cent drop in net profits to QR358.6m for the first nine months of 2010, with increased earnings from its insurance business offset by falling revenues from group aviation and drilling interests. Group revenues fell 3 per cent to QR1.1bn during the same period.
But GIS’s strong alliance with the state of Qatar and, in particular, the state energy firm QP provides a firm footing for the company. It is a direct beneficiary of QP’s energy projects, both on the construction side and the insurance front. With plans to expand internationally, the company is now set to embark on a new phase of growth.
Announcing its first-half financial results in July, the company maintained that it was on target to increase its full-year revenues by 3.6 per cent to QR1.5bn and its net profits by 9.1 per cent to QR393.8m.