Earnings release
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 30 JUNE 2025
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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 CONTENTS Page(s) Independent auditors’ report on review of condensed consolidated interim financial statements 1 - 2 Condensed consolidated interim financial statements: Condensed consolidated interim statement of profit or loss 3 Condensed consolidated interim statement of comprehensive income 4 Condensed consolidated interim statement of financial position 5 - 6 Condensed consolidated interim statement of changes in equity 7 Condensed consolidated interim statement of cash flows 8 - 9 Notes to the condensed consolidated interim financial statements 10 - 22 Qatar Navigation Q.P.S.C.
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1 Independent auditors’ report on review of condensed consolidated interim financial statements To the Shareholders of Qatar Navigation Q.P.S.C. Introduction We have reviewed the accompanying 30 June 202 5 condensed consolidated interim financial statements of Qatar Navigation Q.P.S.C. (the “Company”) and its subsidiaries (together the “Group”), which comprises: • the condensed consolidated interim statement of profit or loss for the six- month period ended 30 June 2025; • the condensed consolidated interim statement of comprehensive income for the six- month period ended 30 June 2025; • the condensed consolidated interim statement of financial position as at 30 June 2025; • the condensed consolidated interim statement of changes in equity for the six- month period ended 30 June 2025; • the condensed consolidated interim statement of cash flows for the six-month period ended 30 June 2025; and • notes to the condensed consolidated interim financial statements . The Board of Directors of the Company is responsible for the preparation and presentation of th ese condensed consolidated interim financial statements in accordance with IAS 34, ‘Interim Financial Reporting’. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. KPMG, Qatar Branch is registered with the Ministry of Commerce and Industry, State of Qatar, and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The KPMG name and logo are registered trademarks of KPMG International. KPMG Zone 25 C Ring Road Street 230, Building 246 P.O Box 4473, Doha State of Qatar Telephone: +974 4457 6444 Fax: +974 4436 7411 Website: kpmg.com/qa
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2 Independent auditors’ report on review of condensed consolidated interim financial statements (continued) Qatar Navigation Q.P.S.C. Conclusion Bas ed on our review, nothing has come to our attention that causes us to believe that the accompanying 30 June 2025 condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’. 30 July 2025 Gopal Balasubramaniam Doha KPMG State of Qatar Qatar Auditors’ Registry Number 251 Licensed by QFMA: External Auditors’ License No. 120153
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS For the six-month period ended 30 June 2025 3 For the six-month period ended 30 June 2025 2024 (Reviewed) Notes QR’000 QR’000 Operating revenues 4 1,592,852 1,433,859 Salaries, wages and other benefits (378,584) (350,033) Operating supplies and expenses (567,859) (509,446) Rent expenses (2,629) (3,502) Depreciation and amortization (244,434) (199,656) Reversal of impairment of receivables 20,377 14,458 Other operating expenses (65,419) (69,200) OPERATING PROFIT 354,304 316,480 Finance costs (22,065) (15,189) Finance income 8,328 6,711 Gain on disposal of property, vessels and equipment 1,682 8,543 Share of results of associates 308,157 297,038 Share of results of joint ventures 53,779 21,084 Net loss on foreign exchange (1,469) (195) PROFIT BEFORE TAX 702,716 634,472 Income tax expense 12 (32,099) (7,400) PROFIT FOR THE PERIOD 670,617 627,072 Attributable to: Equity holders of the Parent 672,169 628,348 Non-controlling interest (1,552) (1,276) 670,617 627,072 BASIC AND DILUTED EARNINGS PER SHARE (attributable to equity holders of the Parent) (expressed in QR per share) 15 0.59 0.55 Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME For the six-month period ended 30 June 2025 4 For the six-month period ended 30 June 2025 2024 (Reviewed) QR’000 QR’000 Profit for the period 670,617 627,072 Other comprehensive income (OCI): Items that will not be reclassified subsequently to profit or loss Net gain/(loss) on financial assets at FVOCI 47,254 (281,814) Equity-accounted investees – share of OCI (2,958) (1,777) 44,296 (283,591) Items that may be reclassified subsequently to profit or loss Net loss resulting from cash flow hedges (6,901) (1,857) Translation reserve movement for equity-accounted investee (548) 6,697 Cash flow hedge movement for equity-accounted investees (161,667) 21,640 (169,116) 26,480 Total (124,820) (257,111) Total comprehensive income for the period 545,797 369,961 Attributable to: Equity holders of the Parent 547,349 371,543 Non-controlling interests (1,552) (1,582) 545,797 369,961 Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As at 30 June 2025 5 30 June 31 December 2025 2024 (Reviewed) (Audited) Notes QR’000 QR’000 ASSETS Non-current assets Property, vessels and equipment 5 3,273,917 3,095,280 Investment properties 6 868,292 875,680 Intangible assets 3,617 4,416 Right-of-use assets 150,543 118,368 Investments in joint ventures 1,097,453 1,083,572 Investments in associates 8,250,915 8,248,809 Financial assets at FVOCI 2,882,867 2,854,287 Investments in deposits 365,000 365,000 Loans granted to LNG companies 74,468 77,361 Deferred tax assets 7,415 3,858 Total Non-current assets 16,974,487 16,726,631 Current assets Inventories 62,198 62,177 Trade and other receivables 1,011,906 1,069,235 Equity instruments at FVTPL 647,068 645,751 Investments in term deposits 7 88,444 514,855 Cash and cash equivalents 544,906 187,996 2,354,522 2,480,014 Non-current assets classified as held for sale 14 375,924 - Total Current assets 2,730,446 2,480,014 Total Assets 19,704,933 19,206,645 EQUITY AND LIABILITIES Attributable to equity holders of the Parent Share capital 9 1,136,165 1,136,165 Legal reserve 4,693,986 4,693,986 General reserve 623,542 623,542 Fair value reserve 2,401,055 2,350,149 Hedging reserve 1,071,832 1,240,400 Translation reserve (18,575) (18,027) Retained earnings 7,659,585 7,448,492 Equity attributable to equity holders of the Parent 17,567,590 17,474,707 Non-controlling interests 1,392 2,944 Total Equity 17,568,982 17,477,651 The condensed consolidated interim statement of financial position continues on the next page. Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY For the six-month period ended 30 June 2025 7 Attributable to the equity holders of the Parent Share capital Legal reserve General reserve Fair value reserve Hedging reserve Translation reserve Retained earnings Total Non- controlling interest Total QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 Balance at 31 December 2024 (Audited) 1,136,165 4,693,986 623,542 2,350,149 1,240,400 (18,027) 7,448,492 17,474,707 2,944 17,477,651 Profit (loss) for the period - - - - - - 672,169 672,169 (1,552) 670,617 Other comprehensive income (loss) - - - 44,296 (168,568) (548) - (124,820) - (124,820) Total comprehensive income (loss) - - - 44,296 (168,568) (548) 672,169 547,349 (1,552) 545,797 Transactions with owners of the Group: Dividends paid (Note 10) - - - - - - (454,466) (454,466) - (454,466) Other equity movement: Reclassification on disposal of FVOCI - - - 6,610 - - (6,610) - - - Balance at 30 June 2025 (Reviewed) 1,136,165 4,693,986 623,542 2,401,055 1,071,832 (18,575) 7,659,585 17,567,590 1,392 17,568,982 Attributable to the equity holders of the Parent Share capital Legal reserve General reserve Fair value reserve Hedging reserve Translation reserve Retained earnings Total Non- controlling interest Total QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 Balance at 31 December 2023 (Audited) 1,136,165 4,693,986 623,542 2,465,084 981,653 - 6,780,714 16,681,144 41,569 16,722,713 Profit (loss) for the period - - - - - - 628,348 628,348 (1,276) 627,072 Other comprehensive (loss) income - - - (283,285) 19,783 6,697 - (256,805) (306) (257,111) Total comprehensive (loss) income - - - (283,285) 19,783 6,697 628,348 371,543 (1,582) 369,961 Transactions with owners of the Group: Dividends paid (Note 10) - - - - - - (426,062) (426,062) - (426,062) Other equity movement: Reclassification on disposal of FVOCI - - - 81 - - (81) - - - Reduction of capital (i) - - - - - - - - (36,122) (36,122) Balance at 30 June 2024 (Reviewed) 1,136,165 4,693,986 623,542 2,181,880 1,001,436 6,697 6,982,919 16,626,625 3,865 16,630,490 (i) During the comparative period, Qatar Quarries and Building Materials Company P.Q.S.C., one of the subsidiaries of the Group have resolved to reduce the equity by way of repayments amounting to QR 36.12 million affecting the Groups’ non-controlling interests. Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2025 8 For the six-month period ended 30 June 2025 2024 (Reviewed) QR’000 QR’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 702,716 634,472 Adjustments for: Depreciation of property, vessels and equipment 165,036 135,021 Depreciation of investment property 28,869 26,720 Amortisation of intangible assets 1,554 2,041 Depreciation of right-of-use assets 48,975 35,874 Gain on disposal of property, vessels and equipment (1,682) (8,543) Share of results of associates (308,157) (297,038) Share of results of joint ventures (53,779) (21,084) Provision for employees’ end of service benefits 16,414 7,888 Dividend income (97,252) (106,664) Net fair value (gain)/loss on equity instruments at FVTPL (1,318) 1,154 Reversal of impairment of receivables (20,377) (14,458) Finance costs 22,065 15,189 Finance income (8,328) (6,711) Operating profit before working capital changes: 494,736 403,861 Changes in: Inventories (21) 18,648 Trade and other receivables 76,958 (209,501) Trade and other payables 40,837 30,249 Cash generated from operating activities 612,510 243,257 Employees’ end of service benefits paid (7,844) (3,984) Net cash from operating activities 604,666 239,273 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, vessels and equipment (344,303) (402,510) Purchases of investment property (21,481) (7,989) Additions to intangible assets (230) (43) Net movement of investments in term deposits 426,411 199,750 Investments in financial assets at FVOCI (66,887) (102,962) Investments in deposits - (365,000) Proceeds from disposal of property, vessels and equipment 1,787 97,830 Proceeds from disposal of intangible assets - 3 Proceeds from disposal of financial assets at FVOCI 85,645 12,399 Dividends received from joint ventures 39,350 31,850 Dividends received from associates 141,424 281,395 Dividends received from investments 97,252 106,664 Finance income received 8,328 6,711 Net cash from / (used in) investing activities 367,296 (141,902) The condensed consolidated interim statement of cash flows continues on the next page. Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS (CONTINUED) For the six-month period ended 30 June 2025 9 For the six-month period ended 30 June 2025 2024 (Reviewed) Notes QR’000 QR’000 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to the Company’s shareholders 10 (454,466) (426,062) Payment of lease liabilities (51,179) (39,451) Loans and borrowings settled (214,621) (88,674) Loans and borrowings utilised 127,279 292,000 Finance costs paid (22,065) (15,189) Net cash used in financing activities (615,052) (277,376) Net increase (decrease) in cash and cash equivalents 356,910 (180,005) Cash and cash equivalents at beginning of period 187,996 414,411 Cash and cash equivalents at end of period 8 544,906 234,406 Report on review of condensed consolidated interim financial statements is set out on pages 1 and 2. The attached notes from 1 to 18 form an integral part of these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 10 1. REPORTING ENTITY Qatar Navigation Q.P.S.C. (the “Company” or the “Parent”) was incorporated in accordance with the provisions of the Qatar Commercial Companies Law No. 11 of 2015 (and all its amendments) as a Qatari Public Shareholding Company, and it is registered at the Ministry of Commerce and Industry of the State of Qatar with the Commercial Registration number 1 dated 5 July 1957. The registered office of the Company is located at Street No. 523, Zone 56, Umm Al Saneem Area, East Industrial Road, Doha, State of Qatar. The shares of the Company are publicly traded on the Qatar Stock Exchange since 26 May 1997. These condensed consolidated interim financial statements comprise the Company and its subsidiaries (collectively referred as the “Group” and individually as the “Group entities”) and the Group’s interests in equity- accounted investees. The principal activities of the Group, which remain unchanged from the previous period, include the provision of marine transport, acting as agent to foreign shipping lines, offshore services, sale of heavy vehicles, ship repair, fabrication and installation of offshore structures, land transport, chartering of vessels, real estate, investments in listed and unlisted securities, trading of aggregates, building materials, warehousing, and supply chain management. The structure of the Group has not changed since the last annual consolidated financial statements as at and for the year ended 31 December 2024 (the “latest annual financial statements”) . However, during the period the Group has incorporated four new subsidiaries in overseas jurisdictions. The condensed consolidated interim financial statements of the Group were authorised for issue by the Company’s Board of Directors on 30 July 2025. 2. BASIS OF CONSOLIDATION 2.1 Basis of preparation The condensed consolidated interim financial statements for the six months ended 3 0 June 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting and and should be read in conjunction with the Group’s last annual audited consolidated financial statements as at and for the year ended 31 December 2024 (‘last annual financial statements’). They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Accounting Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since last annual financial statements. All values are rounded to the nearest thousands (QR’000) except otherwise indicated. The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty and Group’s financial risk management objectives and policies were the same as those that applied to the consolidated fin ancial statements as at and for the year ended 31 December 2024 except for the application of accounting policy as mentioned below. Non-current Assets Held for Sale Non-current assets are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing us e. Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell. Once classified as held for sale, property plant and equipment are no longer depreciated. 2.2 New standards, interpretations and amendments New and amended standards adopted by the Group The Group adopted the below amendment to standards effective as of 1 January 2025: (ix) Effective date New accounting standards or amendment (x) 1 January 2025 • Lack of exchangeability - Amendments to IAS 21 The application of the amendment listed above did not have a material impact on these condensed consolidated interim financial statements.
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 11 2. BASIS OF CONSOLIDATION (CONTINUED) 2.2 New standards, interpretations and amendments (continued) Impact of new standards (issued but not yet adopted by the Group) (xi) Effective date New accounting standards or amendment (xii) 1 January 2026 • Classification and Measurement of Financial Instruments – Amendment to IFRS 9 and IFRS 7 • Contract referencing Nature-dependent Electricity – Amendment to IFRS 9 and IFRS 7 • Annual improvements to IFRS Accounting Standards – Volume 11 (xiii) 1 January 2027 • IFRS 18 Presentation and Disclosure in Financial Statements • IFRS 19 Subsidiaries without Public Accountability: Disclosures (xiv) To be determined • Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. 3. USE OF JUDGMENTS AND ESTIMATES In preparing these condensed consolidated interim financial statements, management has made judgments and estimates about the future, that affect the application of Group’s accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements. Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financials and non-financial assets and liabilities. When measuring the fair value of an asset or liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted market price (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability either directly (i.e., as prices) or indirectly (i.e., derived from prices). • Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 12 4. OPERATING REVENUES The Group revenues consist of activities under the following operating segments: Six-month period ended 30 June 2025 2024 (Reviewed) QR’000 QR’000 Disaggregation of revenue Milaha Capital 182,307 225,677 Milaha Maritime and Logistics 348,236 329,366 Milaha Offshore 869,899 710,963 Milaha Trading 33,677 45,960 Milaha Gas and Petrochem 158,733 121,893 1,592,852 1,433,859 Of the total revenues, the Group has recognized QR 1.36 billion (2024: QR 1.14 billion) over time and QR 0.23 billion (2024: QR 0.29 billion) at a point in time. 5. PROPERTY, VESSELS AND EQUIPMENT 30 June 31 December 2025 2024 (Reviewed) (Audited) QR’000 QR’000 At 1 January 3,095,280 2,775,797 Additions (i) 344,303 824,409 Disposals and write off (ii) (105) (92,622) Transfers and reclassifications (525) (1,360) Impairment of property, vessels and equipment - (110,826) Depreciation charge for the period / year (165,036) (300,118) At 30 June / 31 December 3,273,917 3,095,280 (i) During the current period, the Group has purchased one (1) vessel at a cost of QR 269 million (31 December 2024: three (3) vessels with a total cost of QR 514 million). (ii) During the prior period, the Group sold one (1) floating dock with a total net book value of QR 86.10 million and recognized a cumulative gain of QR 8.50 million. 6. INVESTMENT PROPERTIES 30 June 31 December 2025 2024 (Reviewed) (Audited) QR’000 QR’000 At 1 January 875,680 856,183 Additions 21,481 76,126 Depreciation charge for the period / year (28,869) (56,629) At 30 June / 31 December 868,292 875,680
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 13 7. INVESTMENTS IN TERM DEPOSITS 30 June 31 December 2025 2024 (Reviewed) (Audited) QR’000 QR’000 Term deposits with banks 485,515 578,622 Less: Term deposits maturing before 90 days (397,071) (63,767) Term deposits maturing after 90 days 88,444 514,855 (i) Investments in term deposits earn interests at market rates. (ii) Term deposits are assessed to have low credit risk of default since these banks are highly regulated by the central bank of Qatar. Accordingly, the Group estimates the loss allowance on balances with banks at the end of the reporting period at an amount equal to 12-month ECL. None of the balances with banks at the end of the reporting period are past due and taking into account the historical default experience and the current credit ratings of the bank, the Group has assessed the ECL to be immaterial. 8. CASH AND CASH EQUIVALENTS For the purpose of the condensed consolidated interim statement of cash flows, cash and cash equivalents comprise of the following items: 30 June 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 (i) Deposits with an original maturity of less than 90 days are made for varying periods depending on the immediate cash requirements of the Group at commercial market rates. (ii) Balances with banks are assessed to have low credit risk of default since these banks are highly regulated by the central bank of Qatar. Accordingly, the Group estimates the loss allowance on balances with banks at the end of the reporting period at an amount equal to 12-month ECL. None of the balances with banks at the end of the reporting period are past due and taking into account the historical default experience and the current credit ratings of the bank, the Group has assessed the ECL to be immaterial. 9. SHARE CAPITAL Number of shares (‘000’) QR’000 Authorised, issued and fully paid shares At 30 June 2025 and 31 December 2024 shares with nominal value of QR 1 each (i) 1,136,165 1,136,165 (i) All shares have equal rights. Cash in hand 1,957 3,216 Bank balance – term deposits (i) 397,071 75,601 Bank balance 145,878 155,589 Cash and cash equivalents in the condensed consolidated interim statement of cash flows 544,906 234,406
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 14 10. DIVIDENDS Dividend proposed and paid for the year 2024 The Board of Directors ha d proposed a 40% (2024: 37.5%) cash dividend of QR 0.40 (2024: QR 0.375) per share totaling QR 454 million for the year 2024 (2024: QR 426 million for the year 2023) which was approved by the equity holders at the Annual General Assembly held on 24 February 2025 (2024: held on 5 March 2024). Dividend paid: 30 June 31 December 2025 2024 (Reviewed) (Audited) QR’000 QR’000 Final dividend 454,466 426,062 11. CONTINGENT LIABILITIES 30 June 31 December 2025 2024 (Reviewed) (Audited) QR’000 QR’000 Letters of guarantees 1,195,103 1,034,705 Letters of credits 643 - 1,195,746 1,034,705 12. INCOME TAX EXPENSE A) Income tax expense for the period Income tax expense is recognised at an amount determined by multiplying the profit (loss) before tax for the interim reporting period by management's best estim ate of the annual income tax rate expected for the full financial year, adjusted for the tax effect of certain items recognised in full in the interim period. As such, the effective tax rate in the interim financial statements may differ from management's estimate of the effective tax rate for the annual financial statements. B) Global minimum top-up tax The Group is subject to the global minimum top -up tax under Pillar Two tax legislation. On 27 March 2025, Qatar published in the Official Gazette, Law No. 22 of 2024 amending specific provisions of the Income Tax Law promulgated under Law No. 24 of 2018 by introducing Domestic Minimum Top -up Tax (‘DMTT’) and Income Inclusion Rule (‘IIR’) with a minimum effective tax rate of 15 percent. The amendments are effective from 1 January 2025 and the related regulations on implementation, compliance and administrative provisions are expected to be issued by the General Tax Authority in the near future.
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 15 12. INCOME TAX EXPENSE (CONTINUED) B) Global minimum top-up tax (continued) The top-up tax relates to the Group’s operations in the State of Qatar (‘Qatar’), Germany, Singapore, UAE, India, UK, Luxembourg, Malta and KSA. Except for India, KSA and Malta, all countries where the Group operates have enacted the Global Minimum Tax Regulation. Howeve r, the Group does not have any current tax impact in Germany and Malta because of international shipping operation which are under tonnage tax regime; UK and KSA are dormant as of 30 June 2025; Luxembourg and Singapore income are considered under Domestic Minimum Top-up Tax rules introduced therein and UAE branch is incurring losses, which does not have any top- up tax impact. The Group has not recognized any top -up tax for the six -month period ended 30 June 2025 as the income tax expense is higher than the minimum tax to be recognized under pillar two tax legislations. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. 13. FAIR VALUES OF FINANCIAL INSTRUMENTS Financial instruments comprise of financial assets, financial liabilities and derivative financial instruments. Financial assets consist cash and cash equivalents, financial assets at FVOCI, investment in term deposits, investment in deposits, equity instruments at FVOCI, financial assets at FVTPL, loans granted to LNG companies, other financial assets and receivables. Financial liabilities consist of loans and borrowings and payables. Derivative financial instruments consist of interest rate swaps. Carrying amounts and fair values A comparison by class of the carrying value and fair value of the Group’s financial instruments that are measured at fair value in the condensed consolidated interim statement of financial position are set out below: Carrying amount Fair value 30 June 31 December 30 June 31 December 2025 2024 2025 2024 (Reviewed) (Audited) (Reviewed) (Audited) QR’000 QR’000 QR’000 QR’000 Financial assets at fair value through profit or loss Equity instruments at FVTPL 647,068 645,751 647,068 645,751 Financial assets (liabilities) at fair value through other comprehensive income Financial assets at FVOCI 2,882,867 2,854,287 2,882,867 2,854,287 Derivative financial instrument Interest rate swaps (cash flow hedge) (5,961) 939 (5,961) 939 2,876,906 2,855,226 2,876,906 2,855,226
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 16 13. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED) Measurement of fair values The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values: • Cash and cash equivalents, investments in deposits, investment in term deposits, trade and other receivables, trade and other payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. • Loans and borrowings and investments in deposits are carried at amortized cost and their carrying amounts approximate their fair values. • Fair value of quoted financial assets at FVOCI is derived from quoted market prices in active markets. • Fair value of unquoted financial assets at FVOCI and equity instruments at FVTPL is estimated using appropriate valuation techniques. • Loans granted to LNG companies are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. As the reporting period, the carrying amounts of such receivables are not materially different from their calculated fair values. The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives are valued based on market valuation provided by the respective financial institution. The Group held the following financial instruments measured at fair value at the reporting period: 30 June 2025 Level 1 Level 2 Level 3 QR’000 QR’000 QR’000 QR’000 Financial assets measured at fair value through profit or loss: Equity instruments at FVTPL 647,068 - 149,495 497,573 Financial assets measured at fair value through other comprehensive income: Quoted shares 1,832,725 1,832,725 - - Unquoted shares 45,203 - - 45,203 Unquoted investments in foreign companies 430,830 - 430,830 - Investments in corporate bonds 574,109 81,359 492,750 - Derivative financial instruments Interest rate swaps (5,961) - (5,961) -
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 17 13. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED) Measurement of fair values (continued) 31 December 2024 Level 1 Level 2 Level 3 QR’000 QR’000 QR’000 QR’000 Financial assets measured at fair value through profit or loss: Equity instruments as FVTPL 645,751 - 147,298 498,453 Financial assets measured at fair value through other comprehensive income: Quoted shares 1,855,281 1,855,281 - - Unquoted shares 14,053 - - 14,053 Unquoted investments in foreign companies 372,936 - 372,936 - Investments in corporate bonds 612,017 82,765 529,252 - Derivative financial instruments Interest rate swaps 939 - 939 - During the six -month period ended 30 June 202 5, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements. The Group does not hold credit enhancement or collateral to mitigate credit risk. The carrying amount of financial assets therefore represents the potential credit risk. The tables above illustrate the classification of the Group’s financial instruments based on the fair value hierarchy as required for complete sets of financial statements. This classification provides a reasonable basis to illustrate the nature and extent of risks associated with those financial instruments. 14. RELATED PARTY DISCLOSURES The following table provides the total amount of transactions that have been entered into with related parties during the six-month period ended 30 June 2025 and 2024, as well as balances with related parties as at 30 June 2025 and 31 December 2024: Related party transactions Six-month period ended 30 June 2025 2024 Sales Purchases Sales Purchases (Reviewed) (Reviewed) QR’000 QR’000 QR’000 QR’000 Associates 2,512 4,444 1,129 214 Joint ventures 98 432,362 196 45,892 2,610 436,806 1,325 46,106
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 18 14. RELATED PARTY DISCLOSURES (CONTINUED) Related party balances Balances with related parties included in the condensed consolidated interim statement of financial position are as follows: 30 June 2025 31 December 2024 Trade receivables Trade and other payables Trade receivables Trade and other payables (Reviewed) (Audited) QR’000 QR’000 QR’000 QR’000 Joint ventures(i) 28 385,926 75 7,121 Associates 1,293 972 2,689 940 Directors 519 77 215 65 1,840 386,975 2,979 8,126 (i) During the period, the Company purchased two (2) vessels from one of its joint ventures amounting to QR 376 million which remained unpaid as at 30 June 2025. The management committed to a plan to sell these vessels, hence, classified these vessels as non-current assets held for sale. Efforts to sell the vessels have started and the sale is expected by September 2025. The carrying amount of these vessels is QR 376 million which is the lower of its carrying amount and fair value less costs to sell. Loans granted to associate and joint venture Loans to LNG companies amounting to QR 74.47 million (2024: QR 77.36 million) and loan to an LPG company amounting to QR 71.36 million (2024: QR 69.35 million). Compensation of directors and other key management personnel The remuneration of directors and other members of key management provided for / paid during the period was as follows: Six-month period ended 30 June 2025 2024 (Reviewed) QR’000 QR’000 Salaries and allowances 7,541 5,090 Provision for employees’ end of service benefits 823 588 Board of directors’ remuneration 6,975 6,975 15,339 12,653
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 19 15. BASIC AND DILUTED EARNINGS PER SHARE Basic earnings per share is calculated by dividing the net profit for the period attributable to equity holders of the Parent by the weighted average number of shares outstanding during the period. There were no potentially dilutive shares outstanding at any time during the period and, therefore, the diluted earnings per share is equal to the basic earnings per share. Six-month ended 30 June 2025 2024 (Reviewed) Net profit for the period attributable to equity holders of the Parent (QR’000) 672,169 628,348 Weighted average number of shares (000’s) 1,136,165 1,136,165 Basic and diluted earnings per share (QR) 0.59 0.55 16. SEGMENT INFORMATION Group is organised into six pillars as follows, which constitute five reportable segments (strategic divisions): • Milaha Capital provides corporate finance advisory services to the Parent and its subsidiaries, in addition to managing its proprietary portfolio of financial and real estate investments and holding the investment of Qatar Quarries and Building Material Company W.L.L. • Milaha Maritime & Logistics delivers a comprehensive range of services to major importers, exporters and shipping companies in the region, including oil & gas majors. The activities include logistics services, container feeder shipping, non -vessel operatin g common carriers (NVOCC) operations, bulk shipping, shipping agencies, port management and operations, shipyard and steel fabrication. • Milaha Offshore provides comprehensive offshore support services to the oil and gas industry across the region. The group currently operates a fleet of offshore service vessels, which include safety standby vessels, anchor handling tugs, crew boats, workbo ats and dynamic positioning (DP) vessels. It provides a complete range of diving services including saturation diving. • Milaha Trading is engaged in trading trucks, heavy equipment, machinery and lubrication brands in Qatar. The segment markets its products and provides critical after sales service. • Milaha Gas and Petrochem owns, manages and operates a fleet of LPG and LNG carriers and provides ocean transportation services to international energy and industrial companies. It further owns and manages a Floating Storage and Offloading (FSO) unit. • Milaha Corporate provides necessary services to all the pillars to run their respective business. These services are costs of management, corporate development and communications, internal audit, legal affairs, shared services, information technology, proc urement, human resources and administration and finance. The costs are subsequently allocated. Adjustments with respect to Milaha Corporate represent costs captured and subsequently allocated to various business pillars by way of a laid down methodology. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consiste ntly with operating profit or loss in the condensed consolidated interim financial statements. Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 20 16. SEGMENT INFORMATION (CONTINUED) Six-month period ended 30 June 2025 (Reviewed) Milaha Capital Milaha Maritime and Logistics Milaha Offshore Milaha Trading Milaha Gas and Petrochem Adjustments relating to Milaha Corporate Total segments Adjustments and eliminations Consolidated QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 Operating revenues 203,609 453,881 874,836 96,542 158,733 - 1,787,601 (194,749) 1,592,852 Salaries, wages and other benefits (6,611) (160,733) (103,945) (12,355) (18,621) (76,319) (378,584) - (378,584) Operating supplies and expenses (6,463) (348,186) (271,565) (83,965) (22,403) (6,714) (739,296) 171,437 (567,859) Rent expenses (1,116) (14,861) (2,154) (1,423) (52) (4,931) (24,537) 21,908 (2,629) Depreciation and amortisation (37,610) (39,518) (128,379) (719) (37,048) (1,160) (244,434) - (244,434) Reversal of impairment of receivables 6,363 11,754 1,328 932 - - 20,377 - 20,377 Other operating expenses (4,792) (32,493) (15,548) (2,167) (3,060) (8,763) (66,823) 1,404 (65,419) Allocations relating to fleet and technical services - 170,479 (170,465) - (14) - - - - Allocations relating to Milaha Corporate (9,151) (49,535) (28,721) (6,429) (4,050) 97,886 - - - OPERATING PROFIT (LOSS) 144,229 (9,212) 155,387 (9,584) 73,485 (1) 354,304 - 354,304 Finance costs (11,244) (2,248) (20,201) (1) (19,329) - (53,023) 30,958 (22,065) Finance income 12,181 - 11,962 31 15,111 1 39,286 (30,958) 8,328 Gain on disposal of property, vessels and equipment - 24 1,581 77 - - 1,682 - 1,682 Share of results of associates 222 (99) - - 308,034 - 308,157 - 308,157 Share of results of joint ventures - 48,776 - - 5,003 - 53,779 - 53,779 Net loss on foreign exchange (123) (1,274) (1) (71) - - (1,469) - (1,469) PROFIT (LOSS) BEFORE TAX 145,265 35,967 148,728 (9,548) 382,304 - 702,716 - 702,716 - Income tax (expense)/benefit (3,438) 2,007 (16,687) 1,525 (15,506) - (32,099) - (32,099) PROFIT (LOSS) FOR THE PERIOD 141,827 37,974 132,041 (8,023) 366,798 - 670,617 - 670,617 Attributable to: Equity holders of the Parent 143,379 37,974 132,041 (8,023) 366,798 - 672,169 - 672,169 Non-controlling interest (1,552) - - - - - (1,552) - (1,552) 141,827 37,974 132,041 (8,023) 366,798 - 670,617 - 670,617
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 21 16. SEGMENT INFORMATION (CONTINUED) Six-month period ended 30 June 2024 (Reviewed) Milaha Capital Milaha Maritime and Logistics Milaha Offshore Milaha Trading Milaha Gas and Petrochem Adjustments relating to Milaha Corporate Total segments Adjustments and eliminations Consolidated QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 Operating revenues 244,595 393,944 716,207 101,813 121,893 - 1,578,452 (144,593) 1,433,859 Salaries, wages and other benefits (6,562) (152,240) (90,319) (13,155) (14,982) (72,775) (350,033) - (350,033) Operating supplies and expenses (20,344) (323,704) (186,730) (88,454) (7,384) (7,360) (633,976) 124,530 (509,446) Rent expenses (1,404) (14,996) (916) (1,421) (99) (3,441) (22,277) 18,775 (3,502) Depreciation and amortisation (37,266) (17,388) (117,079) (859) (25,968) (1,096) (199,656) - (199,656) (Provision for)/Reversal of impairment of receivables (236) 6,093 8,274 327 - - 14,458 - 14,458 Other operating expenses (3,408) (29,743) (20,732) (1,186) (6,318) (9,101) (70,488) 1,288 (69,200) Allocations relating to fleet and technical services - 153,546 (153,317) - (229) - - - - Allocations relating to Milaha Corporate (8,881) (47,860) (26,594) (5,655) (4,760) 93,750 - - - OPERATING PROFIT (LOSS) 166,494 (32,348) 128,794 (8,590) 62,153 (23) 316,480 - 316,480 Finance costs (8,789) (13,674) (21,357) - (13,403) - (57,223) 42,034 (15,189) Finance income 17,616 13,015 13,873 39 4,191 11 48,745 (42,034) 6,711 Gain on disposal of property, vessels and equipment - 7,629 755 147 - 12 8,543 - 8,543 Share of results of associates 943 100 - - 295,995 - 297,038 - 297,038 Share of results of joint ventures - 9,833 - - 11,251 - 21,084 - 21,084 Net gain/(loss) on foreign exchange 37 (166) 26 (46) (46) - (195) - (195) PROFIT (LOSS) BEFORE TAX 176,301 (15,611) 122,091 (8,450) 360,141 - 634,472 - 634,472 Income tax benefit (expense) 32 - (6,128) 269 (1,573) - (7,400) - (7,400) PROFIT (LOSS) FOR THE PERIOD 176,333 (15,611) 115,963 (8,181) 358,568 - 627,072 - 627,072 Attributable to: Equity holders of the Parent 177,609 (15,611) 115,963 (8,181) 358,568 - 628,348 - 628,348 Non-controlling interest (1,276) - - - - - (1,276) - (1,276) 176,333 (15,611) 115,963 (8,181) 358,568 - 627,072 - 627,072
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Qatar Navigation Q.P.S.C. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS As at and for the six-month period ended 30 June 2025 22 17. COMPARATIVE FIGURES The comparative figures for the previous period have been reclassified, where necessary, in order to conform to the current period’s presentation. Such reclassifications do not aff ect the previously reported profits, gross assets or equity. 18. SUBSEQUENT EVENTS There were no significant events after the reporting date which have a bearing on the understanding of these condensed consolidated interim financial statements.