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Chairman's Message

It gives me great pleasures to welcome you personally as well on behalf of the Board of Directors and present the 15^th Annual General Report of Qatar Shipping Company for the year ended 31^st December, 2007. The year 2007 was a land mark year in the history of Q.Ship.

In the financial year 2007 Q.Ship earned a all time record profit of QR 621.366 million, which was an increase of about 35.5% on the previous year's record profit of QR. 458.59 million. The all time record profit QR 621.366 million has been earned by deploying innovative strategies to sell ships at the peak of the market, to time charter out ships for long periods, a tight control on costs despite mounting pressures due to a weakening dollar and high inflation. It gives me even greater pleasure to observe that Q.Ship's profit increased handsomely in an environment where freight rates in practically all segments in which it operates have fallen as compared to 2006. During the year Qcon was turned around from a loss making company into a profitable one and at the same time higher profits were earned from Halul Offshore Services Company.

Q.Ship sold two ships a 105,000 DWT Aframax Tankers in January, 2007 and a 37,000 DWT product carrier in February, 2007. I am happy to record that these ships were sold at the peak of the market.

Q.Ship had entered into a 50:50 Joint Venture with QGTC (Nakilat) with respect to the four 82,200 CBM VLGCs which have been ordered on M/s. Hyundai Shipyard. Earlier it was envisaged that Q.Ship would manage these ships from delivery for a period of five years. However, with a view to accommodate Nakilat, it has been agreed that these ships will now be managed by a wholly owned subsidiary of Nakilat.

Q.Ship had a Joint Venture with ExxonMobil which owned two Aframax Tankers. The two tankers owned by the Joint Venture have been sold at attractive prices in January and February, 2008 and it is expected that the Joint Venture will be dissolved in due course.

I would like to mention that Q.Ship has exploited the available opportunities to add value to all stake holders and would continue to do so in future.

Keeping in view the continued commitment towards our shareholders in addition to expansion financial requirements, the Board of Directors recommends to your esteemed Assembly to distribute a total dividend of QR 350 million as cash dividends representing 35% of the share capital (i.e. 3.5 per share), and distribute 10% bonus shares (i.e. one share per ten shares).

On behalf of the shareholders members of the Board and company management, I take this opportunity to express our deepest respect and profound gratitude to His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of the State of Qatar, to His Highness Sheikh Tamim Bin Hamad Al-Thani, the Heir Apparent and to His Highness Sheikh Hamad Bin Jassim Bin Jaber Al-Thani, the Prime Minister and Minister of Foreign Affairs, for their continued guidance and patronage.

We would like to place on record our sincere thanks to QP, represented by H.E. Abdulla Bin Hamad Al-Attiyah, The Deputy Premier, Minister of Energy and Industry, for its support to our company. We would also like to extend our thanks and appreciation to the shareholders for their support to the company and the management and staff of the company, for their loyal and dedicated support.

Salem Bin Butti Al-Naimi

Chairman & Managing Director