Vallianz Q3 earnings dip 4.7% on higher revenue

SINGAPORE - Offshore marine services group Vallianz Holdings posted on Friday (Nov 13) a 4.7 per cent decline in net profit for its third quarter ended Sept 30 to US$4.6 million (S$6.5 million) from US$4.8 million a year ago.

Notwithstanding the challenging operating conditions in the global offshore marine industry, Vallianz saw revenue jump 52.4 per cent in the quarter to US$59.8 million.

This was contributed by higher revenue from its offshore support vessel chartering operations in tandem with the growth of its fleet size, as well as new revenue streams from subsidiaries acquired in the last quarter of 2014, the company said.

Its earnings however were pared by a 72.6 per cent jump in its cost of sales to US$43 million, as operations expanded following its acquisitions.

Said Valliaz CEO, Mr Ling Yong Wah: "The group delivered stable earnings in 3Q2015 despite the current uncertain climate and weakness of the global oil industry. The ability to sustain our profitability under present market circumstances reflects the resilience of our business model which is primarily built on long term vessel charters to national oil companies."

The company said that from the current quarter, it expected to see contribution from the start of a new charter contract to supply two self-elevating platform vessels for up to seven years, including an extension option.

Under the current business climate, its focus will be on solidifying its position as a major OSV (offshore support vessel) provider in the Middle East and working on plans to broaden its presence in this major oil producing region.

Its current chartering services order book of US$940.0 million comprises mainly long-term charters that stretch up to 2022.