Qatar Gas Q3 net profit skyrockets by 70pct

Qatar Gas Transport Co (Nakilat), the world's largest shipper of liquefied natural gas, saw third-quarter net profit rise 70 per cent with surging gas production in the country boosting its business.

Based on Reuters calculations, the shipper made a net profit of 114.5 million riyals compared with 67.12m riyals in the same quarter last year - falling short of a forecast of 250m riyals made by Prime Emirates in a Reuters survey this month.

But Nakilat shares opened up 1.2 per cent, against a 0.2 per cent fall in the local benchmark index. The shares have risen nearly 15 per cent since January, outperforming the index which rose around 6 per cent.

The firm said on Wednesday in a regulatory filing on the Qatar bourse website that nine-month net profit rose 129 per cent to 347.9m riyals ($95.55m). It did not give a breakdown of its results or figures for the third quarter.

Qatar, the world's top LNG exporter, plans to double its annual LNG output this year to 62 million tonnes as it brings on line the world's largest LNG trains, and to hit a target of 77 million tonnes per year in 2010.

Nomura, which began coverage of Nakilat in August with a "neutral" rating, has said Nakilat was trading with a 37 per cent premium relative to other global shipping and tanker firms.

It has also cited the limited upside to LNG shipping rate recovery, port constraints, high leverage and the absence of dividend as negative risks for Nakilat.

However, Nomura said Nakilat's defensive position is part of the key positives which is offsetting the downside risks.

"Nakliat's shipping rates are under fixed and long-term rates, so relatively immune to near-term supply and pricing pressure in spot LNG markets," the Japanese bank said in a note to clients in August.