Gulf Navigation seeks cash injection from new investor

Gulf Navigation seeks cash injection from new investor

Gulf Navigation Holding PJSC has signed an MoU, which could see an unnamed investor acquire shares and provide a cash injection to the company.

The shipping operator, which revealed accumulated losses of AED 667 million ($181.6 million) earlier this month, equivalent to 52.3% of capital ratio, said the investor would enter as a strategic partner.

A consulting firm will be appointed to carry out a feasibility study to evaluate the company’s assets, the Dubai-based firm said in a statement to Dubai Financial Market (DFM).

Auditors EY said in the firm’s Q3 2022 financial results that the group’s liabilities exceed its assets by AED 90.3 million as of September 30 2022, down from AED 127.9 million at December 31 2021.

That and other matters indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern, the financial report said.

The group announced a profit of AED 4.2 million in Q3 2022, after a AED 14.6 million loss in Q3 2021. Operating revenue for the quarter was AED 31.7 million, up from AED 27 million in 2021.

Analysis of accumulated losses cited lower revenue due to COVID-19 impact, high net finance cost, the write-off of Gulf Navigation 1,