Vallianz more than doubles net profit for Q3, confident of prospects

Vallianz Holdings reported on Friday that its net profit more than doubled to US$4.82 million for the third quarter ended Sept 30, 2014, compared to US$2.14 million a year ago. Earnings per share was 0.19 US cent, compared to 0.18 US cent a year ago.

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Vallianz more than doubles net profit for Q3, confident of prospects

Angela Tan
07 November 2014

Vallianz Holdings reported on Friday that its net profit more than doubled to US$4.82 million for the third quarter ended Sept 30, 2014, compared to US$2.14 million a year ago. Earnings per share was 0.19 US cent, compared to 0.18 US cent a year ago.

The provider of offshore support vessels to the oil and gas industry generated a more than five-fold jump in revenue to US$39.25 million from US$6.49 million a year ago. The higher revenue was driven mainly by contributions from operations in the Middle East.

As part of a programme to expand its own fleet to 50 vessels by 2016, the group added four new vessels during the quarter which brought its own fleet to 33. Depending on its contractual obligations, it is looking to increase this base to 38 vessels by the end of 2014.

Vallianz maintains a positive outlook for its offshore support vessel chartering business.

Chief executive officer of Vallianz, Darren Yeo, said: “As the group’s strategy focuses on supporting the shallow water exploration and production activities of national oil companies and international oil majors, we envisage chartering demand to remain firm for our fleet of offshore support vessels. Moreover, our order book comprises mainly of medium to long-term chartering contracts which will help to shelter the Group from periods of volatility.”

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

On Nov 7, Vallianz’s order book stood at US$529.4 million and stretches up to 2018.

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