Board of Directors Report
Our financial performance in 2024 reflects the strategic focus on sustainable growth and operational excellence. Despite global uncertainties, our financial achievements this year underscore Nakilat’s reputation as a dependable and innovative energy transportation partner.
Our fleet, among the world’s largest in LNG with 74 vessels—69 LNG carriers, 4 LPG carriers, and 1 Floating Storage Regasification Unit (FSRU)—remains the backbone of Qatar’s LNG supply chain, ensuring a seamless and robust transportation link with a combined carrying capacity of over 14 million cubic meters, which is about 12% of the global LNG fleet. Through our dedicated in-house management of 30 vessels, including 25 LNG carriers, 4 LPG carriers, and 1 FSRU, we continue to achieve operational success with steadfast revenue streams through long-term charters with reputable partners globally.
Nakilat’s forward-thinking approach is exemplified by multiple strategic agreements in 2024. Earlier this year, we signed with Hyundai Samho Heavy Industries (HSHI) for the acquisition of two state-of-the-art LNG carriers and four advanced LPG/Ammonia carriers, set for delivery between 2026 and 2027, underscoring our commitment to environmentally conscious growth. Further, as part of QatarEnergy’s historic fleet expansion, Nakilat signed long-term charter agreements for 25 new LNG carriers, each with a capacity of 174,000 cubic meters, fully owned by Nakilat and chartered to QatarEnergy affiliates. Additionally, Nakilat secured a long-term charter for nine QC-Max class LNG vessels, each with a capacity of 271,000 cubic meters, to be built in China at Hudong-Zhonghua shipyards, reinforcing our partnership with QatarEnergy to support North Field expansion. Together, these agreements demonstrate Nakilat’s dedication to sustainable innovation and growth.
Allow me to highlight some of the key operational achievements of Nakilat during 2024:
The company continued to uphold the highest standards of occupational health, safety, and environmental sustainability, earning recognition from the British Safety Council for the sixth consecutive year.
Achieved a zero Lost Time Injury (LTI) rate.
Successfully completed routine maintenance and necessary works for 13 vessels in Nakilat’s fleet within a limited timeframe and cost.
Attained an operational efficiency rate of 99.5%, ranking among the highest globally.
Implemented advanced international standards to elevate customer satisfaction through a specialized program aimed at optimizing satisfaction metrics and potential.
Reflecting on Nakilat’s 20-year journey, we celebrate not only significant achievements but also our commitment to sustainability, a pillar of our success. This milestone serves as a testament to the dedication of our people and the unwavering support of our stakeholders as we look forward to shaping the future of maritime shipping.
Nakilat’s joint ventures at the Erhama Bin Jaber Al Jalahma Shipyard have significantly contributed to our growth, offering essential services in ship repair, offshore fabrication, and a comprehensive suite of maritime solutions. These partnerships continue to strengthen Qatar’s reputation as a leading shipping and maritime hub, supporting Qatar National Vision 2030.
The Board is pleased to highlight the outstanding accomplishments of our joint ventures and subsidiaries in 2024:
Qatar Shipyard Technology Solutions achieved Zero Lost Time Injuries (LTI) completed more than 183 ship and rig repair, fabrication projects in 2024 and accomplished its 300th LNG carrier dry docking project.
Nakilat-SvitzerWijsmuller (NSW) reached an impressive 16.08 million exposure hours without a Lost Time Incident (LTI), maintaining a benchmark of safety.
Nakilat Agency Company (NAC) celebrated 19 years of service, providing around-the-clock logistics and marine services across Qatar’s ports and terminals. In 2024, NAC supported over 3700 port calls locally and 2100 internationally, all without incident or service disruption.
Qatar Fabrication (QFAB) progressed in major fabrication projects, including four wellhead platform topsides and several key components for the QatarEnergy LNG North Field Expansion (NFXP / NFE) Project, commenced fabrication of subsea structures for the QatarEnergy LNG North Field Production Sustainability (NFPS) Offshore Fuel Gas Pipelines & Subsea Cables (COMP1) project, delivered five jackets for the North Field South (NFS) Project and continued to support critical subsea infrastructure projects, achieving 10 million work hours LTI free.
The Board of Directors commends Nakilat’s strong financial performance in 2024, marked by a net profit of QAR 1.64 billion, an increase of 5.1% from QAR 1.56 billion in 2023. Given our solid financial footing and anticipated growth trajectory, the company distributed semi-annual dividends in September 2024, amounting to 7 Qatari dirhams per share. The Board is pleased to propose a cash dividend distribution of 7 Qatari dirhams per share for the second half of the year 2024 to the General Assembly.
Nakilat’s Board of Directors extends its sincere gratitude to HH Sheikh Tamim Bin Hamad Al Thani, the Amir of the State of Qatar, and HH Sheikh Hamad Bin Khalifa Al Thani, the Father Amir of the State of Qatar, for their visionary leadership, which has been instrumental in Nakilat’s journey.
Our appreciation also goes to HE Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, for his steadfast support of Nakilat’s activities and partnership with the Erhama Bin Jaber Al Jalahma Shipyard.
Finally, we express our heartfelt thanks to our shareholders, management, employees, and partners—especially QatarEnergy LNG—along with Qatar Stock Exchange (QSE) and Qatar Financial Markets Authority (QFMA) for their continued dedication and invaluable support of the company’s operations.
MR. ABDULAZIZ AL-MUFTAH
Chairman of Nakilat Board
EXPLORE THE ANNUAL REPORT
Corporate Strategy
Corporate Governance
Corporate governance involves a framework of rules and practices designed to ensure that companies operate within a transparent and appropriate decision-making structure, safeguarding the interests of all stakeholders and shareholders. Nakilat’s board of directors and senior management aim to build long-term relationships with stakeholders and maintain the highest standards of ethical behaviour, accountability, transparency, and fairness across all business operations.
Nakilat believes that adopting the best governance practices and standards will enable it to achieve transparency, integrity, and trust in its financial data, thereby enhancing the confidence of creditors, lenders, and shareholders in the company, as well as helping investors make informed investment decisions. Nakilat views governance as a framework that aligns all stakeholders to unite behind the company’s goal to provide clean and reliable energy transportation to improve the quality of life for people worldwide.
Recognizing the essential connection between effective governance and strong financial performance, Nakilat is dedicated to upholding leading governance practices and adhering to the governance code established by the Qatar Financial Markets Authority (QFMA). Our governance report, reflects our commitment to complying with all relevant regulatory requirements. This report is made available to all relevant stakeholders and the public through Nakilat’s website, ensuring transparency and accountability in our governance practices.
Operational Highlights
Fleet
- As global market changes and challenges continued in 2024 within the maritime industry, Nakilat has continued to adapt to all circumstances, demonstrating its strategic vision and reaffirming our unwavering commitment to excellence over two decades of achievements. This year, more than ever, we have achieved sustainable growth in preparation for future opportunities in the evolving energy transport sector.
- Our fleet is one of the largest LNG transport fleets in the world, consisting of 74 vessels, including 69 LNG carriers, 4 large LPG carriers, and 1 FSRU. This makes it a key pillar in the global LNG supply chain from Qatar, providing a reliable transport link with a total cargo capacity exceeding 14 million cubic meters, which is approximately 12% of the global LNG shipping capacity. Nakilat also manages and operates 30 vessels, including 25 LNG carriers, 4 LPG carriers, and 1 FSRU. We continue to achieve operational success with steady revenues from long-term contracts with globally trusted partners, such as QatarEnergy LNG and Cheniere.
- FSRU (Exquisite) achieved a significant milestone by completing 600 ship-to-ship (STS) operations safely in June 2024. By the end of the year, the unit has completed 72 STS operations safely.
- Nakilat vessels played a key role in the clearance process of various new global terminals, adhering to the highest standards of safety and efficiency. We engage with our customers on a regular basis to ensure flawless service that exceed customer expectations. In 2024, Nakilat safely and efficiently executed 11 dry dockings without any accident or incidents.
Shipyard
- Qatar Shipyard Technology Solutions
- Achieved Zero Lost Time Injuries (LTI) recording a total of 7.9 million hours LTI free.
- Accomplished its 300th LNG carrier dry docking project since 2011.
- Completed more than 183 ship and rig repair and fabrication projects in 2024.
- Received the Sector award 2024 – Onshore Major Hazard from the British Safety Council for maintaining safety standards and managing major hazards in shipyard operations.
- Qatar Fabrication Company (QFAB)
- Commenced fabrication of four wellhead platform topsides and subsea structures for the QatarEnergy LNG North Field Expansion Project (NFXP / NFE).
- Commenced fabrication of subsea structures for the QatarEnergy LNG North Field Production Sustainability (NFPS) Offshore Fuel Gas Pipelines and Subsea Cables Project (COMP1).
- Achieved the milestone of 10 million work hours without a Lost Time Injury (LTI), reiterating the company’s commitment to safety
Marine Services
- Nakilat Agency Company (NAC)
- Celebrated 19 years of operations, offering 24/7 agency services to over 70,000 vessels without any service failures and lost time incidents (LTI’s).
- Completed 7 years of strategic partnership with our largest chartering customer to provide global agency services across both load ports in Ras Laffan and over 50 destination port.
- Continued large contract wins in support of the North Field Expansion to support Qatar’s E&P industry and renewed several others on better terms to support our business strategy.
- Continued growth seen at Doha Heliport and Hamad port through the addition of targeted resources to support the development of maritime services in Qatar beyond the QatarEnergy managed ports of Ras Laffan and Mesaieed.
- Facilitated over 14,000 crew movements during the year (including medical attendance and ship-to-ship transfers) in support of Qatar’s hydrocarbon export logistics.
- NSW
- NSW accrued 16.08 million work exposure hours without incurring Loss Time Incidents (LTIs).
- Welcomed 5 new vessels to support QatarEnergy’s operation in Halul Island, alongside a fleet of 3 wellhead maintenance vessels and 2 line boats to transport crew and harbor crafts.
- Maintained high demand operation of 14,091 tug jobs in 2024 to support QatarEnergy’s operations in Ras Laffan Port.
- Upholding high reliability standards by reaching 99.69% technical availability
- Vessel Support Services (VSU)
- Around 3385 orders of various types have been handled by VSU services at Ras Laffan for Nakilat-owned, joint-venture and third-party vessels.
- The number of clearance and delivery transactions in 2024 was 4442, equalling an average of around 370 movements per month.
Sustainability at Nakilat
Nakilat and its joint ventures (JVs) are committed to Qatar National Vision 2030, which outlines the development of a sustainable future for the State of Qatar. As an organization, we conduct various safety and internal development programs to ensure the creation of a safe and reliable workforce, while our robust corporate social responsibility (CSR) framework aims to enrich the lives of local communities and preserve our natural environment.
Our sustainability commitment comprises several key elements, and among our highlights this year include:
Safety Excellence
Safety, Health, Environment and Quality (SHEQ) is top priority for us and we ensure to operate in a safe, reliable and efficient manner within our society and natural environment. The fundamentals of how we deliver safe and reliable operations remain our focus.
We believe that all incidents and injuries are preventable, hence we strive to create an Incident and Injury Free (IIF) environment both at the workplace and at home. Through significant investment in our people, processes, and equipment. Nakilat’s safety performance continues to be excellent and has led to the achievement of industry leading results in comparison to the benchmarked average of our peer group.
Crew Welfare
People are the solid foundation of the organization’s success, and they contribute to operational excellence. Crew welfare is one of the Company’s highest priorities.
Nakilat has developed initiatives towards improving work-life balance for crew members by not only monitoring the workload but also by enhancing our training program. We have introduced promotion programs for junior engineers and cadets and improved rotation schedules. We have taken several measures to support improved lifestyle onboard. For example, enabling our seafarers to take advantage of high-speed internet onboard, to stay in touch with their families, which is provided by communications equipment in combination with effective cybersecurity management.
Nakilat continues to monitor and evaluate through an employee feedback survey utilizing an independent third-party professional organization to identify the perception of our seafarers against the measures we are putting in place for their wellbeing as well as their job satisfaction.
This involved introducing healthy mental wellbeing initiatives to support establishing a positive environment onboard. New projects are focused on continuity of improvement of condition for seafarers. Nakilat continued building high calibre resources in line with our vision on project expansion. 2024 was an exceptional year on training and development of Qatari seafarers, enabling them to reach senior ranks.
Furthermore, tailored programs have been completed for national officers covering shore-based training for various ranks on ship-simulation, bridge-team management, navigational-skills assessment & development programs to support improved maritime skills.
Human Capital & Capability Development
Our commitment towards professional and personal development of our employees, remained as a major focus during 2024. Nakilat continued to adopt a blended learning approach, which resulted in 80% of our training programs being delivered virtually.
A considerable 7,799 hours of training was delivered by experts from both external providers and our internal subject matter experts to employees across Nakilat.
Our Learning Academy, established in 2021, continuously served as a hub of profound learning through 2024, offering employees access to an extensive array of over 22,000 courses and resources through e-learning and LinkedIn learning programs.
Our commitment to nurturing future leadership within our business remained a major focus through the implementation of succession planning.
