Offshore engineering group Vallianz has managed to steer clear of the stormy waters in the oil and gas industry so far, and is still managing to report profits, according to their latest financial quarter.
The firm's earnings fell 5.4 per cent to US$3.6 million (S$4.85m) for the three months ended June 30 over the same period last year.
Revenue was down 2.1 per cent at US$63.7 million, compared with the same period last year.
Vallianz is 25.15 per cent owned by Swiber, which filed a petition to wind up and liquidate itself last month after facing US$25.9 million of demands from creditors. It was eventually placed in judicial management. The firm, which provides offshore support vessels to the oil and gas industry, attributed its decline in profit due to a one-off impairment charge of US$1.6 million.
AT A GLANCE
US$3.6m (-5.4 per cent)
US$63.7m (-2.1 per cent)
It said that the charge was related to the impairment of intangible assets of its subsidiary, OER Group, which was affected by OER's client, Swiber Holdings.
But the firm continued to distance itself from Swiber, noting yesterday that it has become less reliant on Swiber's business.
Swiber's contribution to revenue to the company was US$10.8 million, making up 17 per cent of its revenue for the second quarter, slightly higher than the US$9.8 million in the first quarter. Still, these figures mark a sharp drop from last year, when Swiber's revenue contribution was 34.6 per cent, it said.
The company also highlighted a rise in operating profit, growing 32.4 per cent to US$6 million for the quarter. It credited the rise to lower operating expenses and higher share of results from associate and joint ventures.
Earnings per share came in at 0.10 US cent for the quarter, down from 0.11 cent. Net asset value rose to 6.91 US cents as at June 30, up from 6,85 cents as at Dec 31.
The company said it was focused on its strategy of expanding its vessel chartering and brokerage business, and less on its vessel management unit.
To that end, its chief executive, Mr Ling Yong Wah, said that in the first half of this year, the company had secured new vessel charter contracts valued at up to US$273 million in the Middle East.
"As a result, we continue to have a robust current order book worth US$1.1 billion, comprising mainly of long-term charters that stretch up to 2025 with a key customer in the Middle East," he added.
With its second-largest shareholder and business partner Rawabi Holding Company, a Saudi Arabia-based conglomerate, the company said it was setting its sights on the continued spending on oil and gas production activities by national oil companies in the Middle East.
Its shares closed down $0.001 to $0.022 on Friday.
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