Stock News: Qatar’s GIS Jumps On Qatar Petroleum Contract

Qatar’s Gulf International Services (GIS) rose sharply in early trade on Tuesday after its unit signed contracts worth QAR5.2 billion ($1.4 billion) to supply drilling rig services to state energy giant Qatar Petroleum.

The stock jumped 5.2 per cent to an all-time high of QAR128.9 and was the main support for Qatar’s benchmark, which added 0.5 per cent.

Gulf Drilling International, a subsidiary of GIS, will provide two new offshore rigs and two new land rigs, and extend four other contracts, Qatar Petroleum said in a statement after trading closed on Monday.

The stock has already doubled in price this year, making it one of the best performers in Qatar, and GIS has said it expects its net profit to jump at least 33 per cent to above QAR900 million this year. Qatar Petroleum said the rig contracts had been previously announced, but local retail investors were still energised by the announcement.

Other markets in the region moved little. Dubai’s bourse slipped 0.1 per cent as Emaar Properties edged down 0.4 per cent. But Drake and Scull rose 1.5 per cent after announcing a Dhs110 million ($30 million) deal to build a district cooling plant in Qatar.

Abu Dhabi’s index was almost flat and Egypt edged down 0.2 per cent as property and financial sector stocks pulled back. Developer Talaat Moustafa fell 1.4 per cent and Commercial International Bank was down 0.8 per cent.