Oct. 19 (Bloomberg) -- Qatar Navigation Co., a freight transportation company based in the Persian Gulf emirate, said nine-month profit more than tripled after including one-off gains related to an acquisition.
Net income rose to 1.25 billion riyals ($340 million) in the nine months ended Sept. 30 from 347.6 million riyals a year earlier, the company said in a posting on the Qatar Exchange today. Earnings per share increased to 10.94 riyals from 4.83 riyals.
Qatar Navigation, which acquired Qatar Shipping Co. earlier this year, earned 236 million riyals in “fair value gain” from its 15 percent share in the company prior to the takeover, the company said. It also recorded a gain of 397 million riyals, which represented the difference between the acquisition price and the net fair value of Qatar Shipping’s assets.
“In spite of the slowdown in the global economy and its effect on freight volume and prices, the company was able to achieve strong results due to its diversified activities and strategic investments,” Qatar Navigation Chairman Ali bin Jassim bin Mohammed Al-Thani said in the statement today.
Qatar Navigation bought Qatar Shipping in an all-share transaction in January, acquiring 2.2 shares in Qatar Shipping for every Qatar Navigation share. The purchase came after a world-wide economic slowdown reduced demand for shipping goods by sea.
Qatar Navigation rose 3.9 percent to 82.8 riyals a share on the Qatar Exchange today, the biggest gain since June 1. The stock has risen 28 percent this year.
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