Gulf International Services (GIS) reported a net profit of QR145 million for the first nine months of 2026, driven by a recovery in its drilling and aviation operations. The company posted revenue of QR3.5 billion during the period ended September 30, with earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching QR685 million, reflecting an EBITDA margin of 20%. Earnings per share were QR0.078, down from QR0.309 in the same period in 2025.
GIS’s financial performance improved notably in the third quarter after all previously suspended offshore rigs resumed operations by late June, and most aircraft affected by earlier suspensions returned to service. The Group reported a net profit in the third quarter, contrasting with a loss in the second quarter, supported primarily by increased revenues in the drilling and aviation segments. However, results were partially tempered by a QR68 million customs-related charge in the aviation segment and diminished investment income in the insurance segment due to market conditions.
Year-on-year, GIS’s revenue declined mainly because of reduced drilling and aviation contributions. Profitability across the Group was impacted by losses in the drilling segment, decreased aviation earnings amid regional geopolitical tensions, the customs charge, and higher medical insurance claims affecting the insurance segment.
The drilling segment stabilized in the third quarter, with all offshore rigs returning to service after temporary suspensions earlier in the year, while onshore activities remained steady. During the quarter, three jack-up rigs secured contract extensions of up to four years with an existing client, which is expected to improve asset utilization and medium-term revenue visibility. However, one leased offshore rig contract ended during the quarter. Despite the rebound, drilling revenue for the nine-month period was lower compared to 2025, reflecting suspended offshore rigs between March and June, some off-contract onshore rigs, the expiration of a leased rig’s contract, and reduced lift boat and barge activity due to scheduled maintenance. The segment recorded a net loss for the period but returned to profitability in the third quarter.
The aviation segment also rebounded in the third quarter as most aircraft resumed operations, helping restore domestic flight activities. While revenue and profitability improved quarter-on-quarter, the nine-month revenue remained below the prior year, partly because of lower domestic flying hours during the first half and weaker performance in maintenance, repair, and overhaul services, notably in spare parts sales. Growth in international operations, supported by increased revenue from Libya, mitigated some of these declines. Nonetheless, the segment’s net profit contracted year-on-year due to reduced domestic activity, higher costs, the customs charge, foreign exchange fluctuations, and inflationary accounting effects in international operations.
The insurance segment, operated through Al Koot Insurance, saw strong revenue growth driven by expansion in medical and general insurance businesses, including premiums from major policies signed the previous year. However, net profit declined modestly owing to higher direct costs, especially in medical insurance, despite partially offsetting gains from improved investment portfolio performance. In the third quarter, insurance revenue declined slightly due to the expiration of some general insurance policies, while lower insurance and reinsurance expenses improved gross margins. Reduced investment income amid weaker capital markets negatively influenced net profit.
Amwaj, the Group’s catering arm, recorded modest revenue growth supported by increased man-days, new contract mobilizations, and ongoing catering service expansion. However, rising food and operating costs, partly linked to logistical challenges, pressured profitability. The catering segment’s net profit share fell slightly year-on-year but showed quarter-on-quarter improvements in both revenue and profit in the third quarter.
Financially, GIS maintained a solid position underpinned by a strong asset base and healthy liquidity. Increased cash balances resulted mainly from improved working capital management but were partly offset by dividend payments for 2025 and lower net borrowings.
The company’s board approved the reconstitution of its Board Nomination, Remuneration and Incentives Committee, appointing Saad Rashid Al-Muhannadi as chairman, with Mohammed Yousef Al-Mulla and Essa Matar Al-Kuwari as members.
GIS will hold an investor relations earnings call on November 5, 2026, at 1:30 p.m. Doha time to discuss its latest financial results. The related presentation will be available on the Group’s investor relations website.