Vallianz reports net profit of US$4.2 mln for 1QFY2019
Vallianz Holdings Limited, one of the largest providers of offshore support ve ssels (“OSV”) in the Middle East, reported net profit attributable to owners of the company of US$4.2 million for the three months ended 30 June 2018 which was stable compared to US$4.3 million in 1QFY2018.
The operating conditions in the offshore support vessel (“OSV”) sector remained tough amid intense competition. Nevertheless, the Group notched up revenue of US$42.5 million in 1QFY2019 which was an increase of 3.1% from US$41.2 million previously. This was buoyed by the stable performance of its core vessel chartering and brokerage business which acco unted for 93% of total revenue in 1QFY2019.
Revenue from the chartering and brokerage services held steady at US$39.0 million in 1QFY2019 compared to US$38.4 million in 1QFY2018. During 1QF Y2019, the Group’s key customer, a National Oil Company (“NOC”) in the Middle East, extended the charter contracts for 16 vessels for another year. Although the new charter rates were slightly lower than previously, this impact was mitigated by a full quarter of revenue contribution in 1QFY2019 from new vessel charters with the NOC customer that commenced in the latter half of fourth quarter of F Y2018.
With a larger fleet of vessels currently deployed in the Middle East for the NOC customer’s projects, the Group’s personnel costs had inevitably risen in tandem with its size of operations. Together with the impact of lower charter rates for the contracts that were extended, as well as leasing expenses for a specialized vessel that was earlier transferred to its joint venture company, the Group registered a s ofter gross profit margin of 21.0% in 1QFY2019 versus 25. 9% in 1QFY2018.
As a result, gross profit decreased by 16.4% year-on-year to US$8.9 million i n 1QFY2019. While finance costs increased year-on-year during 1 QFY2019 in line with higher interest rates, this was offset by reduced administrative expenses as the Group continued to keep tight control of its costs.
About Vallianz Holdings Limited
Vallianz Holdings Limited is one of the largest pro viders of offshore support vessels to the oil and gas industry in the Middle East. Headquartered in Singapore, the Group also provides offshore marine services to oil majors and national oil companies worldwide. Today, Vallianz owns and operates a young fleet of 58 offshore support vessels and covers markets in the Middle East, Asia Pacific and Latin America. To strengthen its foundation for growth, the Group is currently executing initiatives to expand its geographical reach, as well as broaden its range of marine assets and s olutions. The Group also continues to seek opportun ities and strategic alliances to increase its penetration in the major and emerging offshore oil and gas markets.
