Vallianz posts net profit of US$ 5.5 mln in 1Q2016
Vallianz Holdings Limited, an established provider of offshore support vessels and integrated marine solutions to the oil and gas industry, today reported that its net profit for the three months ended 31 March 2016 remained stable at US$5.5 million.
Group revenue of US$49.3 million in 1Q2016 was down 18.8% year - on - year from US$60.7 million in 1Q2015 . This was due mainly to the completion of ship management projects in late 2015, lower average charter rates and a change in the revenue mix of its offshore support vessel (“ OSV ”) chartering and brokerage business and ship management services .
At the end of 1Q2016, the Group owns and operates 42 OSVs. The charter ing and brokerage business accounted for a higher 69 % of revenue in 1Q2016, compared to 63% in 1Q2015. The remaining 30% of Group revenue was derived from ship management & shipyard services and investment segments.
Although total revenue was lower in 1Q2016, the Group was able to increase it s gross profit margin to 29.3% from 26.4% in 1Q2 015. This was attributed mainly to the higher revenue contribution of the Group’s OSV chartering business, coupled with the benefits from its ongoing efforts to maximize cost savings from vessel operations and labour expenses.
In addition, the Group’s administrative expenses fell 28.0% year - on - year to US$4.0 million in 1Q2016 as a result of its concerted efforts to optimise its cost structure in late 2015. The completion of a refinancing exercise for the Group’s Middle East operations also led to a 24.0% reduction in finance costs in 1Q2016.
As a result of its cost rationalis ation efforts, the Group posted a steady net profit of US$5.5 million in 1Q2016 compared to US$5.6 million in 1Q2015. The strategic actions taken to lower its overall cost structure helped to mitigate the impact of lower Group revenue and a reduced share of results of associate and joint ventures which fell by approximately US$1.2 million in 1Q2016.
About Vallianz Holdings Limited
Vallianz Holdings Limited is an established provider of offshore support vessels and integrated offshore marine solutions to the oil and gas industry. Headquartered in Singapore, the Group provides offshore marine services to oil majors and national oil companies worldwide. Today, Vallianz owns and operates a young fleet of 4 2 offshore support vessels and covers markets in the Middle East, Asia Pacific and Latin America.
