Mainboard-listed Vallianz Holdings, a provider of offshore support vessels and integrated marine solutions to the oil and gas industry, reported on Friday that its net profit increased by 61 per cent to US$5.2 million (S$6.73 million) for the third quarter ended 30 September from US$3.2 million in same period a year ago.

The group's bottom line growth in the quarter was achieved on the back of a more than five-fold jump in revenue to US$39.3 million from US$6.5 million in year-ago period.

The higher revenue was driven mainly by contributions from the group's operations in the Middle East, which derives charter revenue by providing offshore support vessels to customers in the region.

Due to its three straight quarters of profit growth, the group's net profit soared 123 per cent to US$16.4 million for the nine months of 2014 from US$7.4 million for the corresponding period last year. Charter revenue from the group's young and modern fleet of vessels accounted for approximately 92 per cent of revenue in this period.

Vallianz said it maintains a positive outlook for its offshore support vessel chartering business. It said that despite the recent decline in global oil prices, shallow water oil field projects remain economically viable as they have significantly lower break-even production costs as compared to projects in deep water oil fields.

"Moreover, our order book comprises mainly of medium to long-term chartering contracts which will help to shelter the group from periods of volatility," said Vallianz chief executive officer Darren Yeo said:

The company said it remains confident of its prospects in the Middle East market due to its strong competitive position and established relationships with national oil companies in this region. It added it has been making headway with its plans to diversify into target markets in Latin America, Asia Pacific and West Africa.