Dubai – Mubasher: Gulf Navigation Holding (GNH) has successfully completed the full repayment of a $2.70 million loan for one of its vessels.
The loan was financed by "Rasmala" with an interest rate of 12%. The full proceeds of this vessel will pour into GNH without any deductions, enhancing the company's profitability and cash flow during the next short period, Emirates News Agency (WAM) reported on Sunday.
This achievement is a continuation of GNH’s efforts to cut financing costs, following the recent refinancing of 5 petrochemical tankers under new and preferential terms with a major Chinese lender.
The DFM-listed maritime and shipping company added it managed to reduce financing costs by 40%, compared to 2020. Furthermore, premium costs reached AED 35 million annually by 2020 year-end, and are projected to further drop to AED 24 million by the end of this year and AED 18 million by the end of 2023.
“As a result of the strict measures taken by the Board of Directors and its cost control policy, the company today owns two vessels without any commitments or loans, which is a tremendous achievement, as all its vessels were always mortgaged to lenders in the past. Today, the company has reached a stage that allows it to refinance its assets if the need arises, or to sell these ships in order to replace them with new ships that can win long-term contracts,” the statement concluded.
In the first half (H1) of 2022, GNH turned to net losses attributable to the owners worth AED 2.53 million, against net profits of AED 80.10 million in H1-21.
