Board of Directors Report
It is with great pleasure that I, on behalf of Nakilat’s Board of Directors, present to you our Annual Report for the year 2023.
This year has brought about significant changes and challenges to the global shipping market, shaped by global events and geopolitical shifts. Despite these challenges, Nakilat has not only navigated through these complexities but has also emerged stronger, showcasing resilience, innovation, and a commitment to excellence. As geopolitical dynamics continue to impact global energy markets, Nakilat remains steadfast in adapting to these changes. We recognize the importance of staying agile in the face of uncertainties and are committed to overcoming challenges by leveraging our expertise and strategic partnerships with a forward-looking approach.”
Nakilat’s financial performance in 2023 reflects our unwavering dedication to operational excellence and strategic expansion. This year, our company has not only weathered industry challenges but has also achieved sustainable growth, reinforcing our position as a key player in energy transportation and maritime services.
With a fleet strength of 74 vessels, one of the world’s largest Liquefied Natural Gas (LNG) shipping fleet comprising of 69 LNG carriers, 4 LPG carriers and 1 Floating Storage Regasification Unit (FSRU), the company is the backbone of the transportation link in Qatar’s LNG supply chain. Our LNG fleet has a combined carrying capacity of over 9 million cubic meters, which is about 9.2% of the global LNG fleet carrying capacity. Through its dedicated
in-house ship management, Nakilat operates 30 vessels, 25 LNG carriers, 4 LPG carriers and 1 FSRU. The majority of Nakilat’s vessels are fixed with long-term charterers to reputable local and international counterparties, creating a steady and healthy cash flow for the company.
Our recent fleet expansion with Hyundai Heavy Industries (HHI) in South Korea exemplifies Nakilat’s forward-thinking approach. The acquisition of two cutting-edge LNG carriers and four modern very large LPG carriers reinforces our commitment to technological innovations and environmentally conscious shipping solutions. Scheduled for delivery between 2026 and 2027, these vessels will significantly contribute to our global presence in the LNG shipping sector.
As Nakilat approaches its 20th anniversary since its inception, we reflect on our journey and celebrate the commitment to sustainability that has been integral to our success. This milestone is a testament to the dedication of our team and the support of our stakeholders. We are excited about the future and the continued contributions Nakilat will make to the maritime industry.
Supported by the world-class Erhama Bin Jaber Al Jalahma Shipyard, Nakilat’s joint venture companies continue adding strategic value to our operations through dedicated services, including ship repair, offshore fabrication, as well as a range of maritime services, all of which contribute towards establishing Qatar as a shipping and maritime hub, in support of Qatar National Vision 2030.
The Board is delighted to highlight the achievements of our joint ventures and subsidiaries in 2023:
- Qatar Shipyard Technology Solutions completed 155 repairs for various types of marine vessels and 15 offshore/rig repair projects in 2023.
- NSW surpassed 14 million exposure hours lost time incident (LTI) free in 2023.
- NAC commemorated 18 years of operations in 2023, offering 24/7 shipping, logistics and marine services at all ports and terminals in Qatar. The company provided its agency services to more than 3,500 port calls in Qatar and 2,000 port calls overseas during 2023, without any service failures or LTI.
- QFAB began the fabrication and assembly of four wellhead platform topsides, WHP13N, jacket and subsea infrastructure for the North Field East (NFE) Project and delivered five wellhead jackets for the North Field South (NFS) Project, subsea spools and risers for the North Field Production Sustainability (NFPS) – I1P1 project and the Spent Caustic Treatment Modules (SCTS) for McDermott. QFAB achieved 6 million work hours LTI-free in 2023.
The Board of Directors acknowledges Nakilat for its robust financial performance and operational excellence in 2023. We are delighted to report Nakilat’s net profit of QAR 1.56 billion for the fiscal year, reflecting a 8.3% increase compared to QAR 1.44 billion in 2022. Given our strong financial standing and the anticipated growth opportunities in the coming years, Nakilat’s Board of Directors is pleased to propose the distribution of cash dividends of QAR 0.14 per share for the fiscal year 2023, to the General Assembly.
Nakilat’s Board of Directors would like to express its deep gratitude to HH Sheikh Tamim Bin Hamad Al Thani, the Emir of the State of Qatar, and to HH Sheikh Hamad Bin Khalifa Al Thani, the Father Emir of the State of Qatar, for their visionary and inspiring leadership that have enabled Nakilat’s growth into a diversified shipping and maritime services company that significantly contributes towards the development of Qatar’s maritime and shipping sector.
The Board of Directors also offers its appreciation to HE Eng. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of QatarEnergy for the ongoing support of Nakilat’s activities and extended cooperation with the Erhama Bin Jaber Al Jalahma Shipyard. We also extend appreciation to our long-term main charterer QatarEnergy LNG for their continued support towards Nakilat’s operations. Finally, we would like to thank Nakilat’s partners, shareholders, management, employees, Qatar Stock Exchange (QSE) and Qatar Financial Markets Authority (QFMA) for their continued dedication and support.
MR. ABDULAZIZ AL-MUFTAH
Chairman of the Board
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