The $208.1m loss for the quarter compared to a $5.52m profit in the corresponding period a year earlier. Revenues were 21.5% at $38.69m for the fourth quarter of 2017 against $49.3m in the same period in 2016.
An in-depth evaluation of the carrying value of certain of its assets that comprise goodwill, fixed assets and investments, in light of the current slowdown in the offshore and marine market undertaken in the last quarter resulted in writedowns total $214.55m.
At an operating level the company reported an operating profit of $3.74m for the quarter.
“The industry conditions continue to be extremely challenging amid intense competition in the offshore support vessel market,” said Ling Yong Wah, ceo of Vallianz.
“Although sluggish demand has placed significant pressure on vessel utilisation and charter rates in most markets, Vallianz’s vessel chartering business remains operationally profitable. This is because most of our vessel charters are long term in nature and based primarily in the Middle East region where there are sustained oil production activities.”
Following the release of its results Vallianz requested a trading halt from the Singapore Exchange pending an announcement.