Net profit for the year ended 31 December 2014 was recorded at $18.51m, a jump of 147% from $7.49m in the previous financial year.
Revenue soared to $153.68m compared to $19.99m a year ago due mainly to the group’s vessel chartering business, as well as the start of new charters during the fourth quarter of 2014. The remaining revenue was generated from ship management services services, shipyard services and investments.
Ling Yong Wah, ceo of Vallianz, said the financial year 2014 was a “watershed year” for the company.
“The group not only chalked up a record financial performance, we also worked relentlessly to break into new markets and reinforced our capabilities to ensure that the building blocks are firmly in place for long term growth,” Ling said.
Last year, Vallianz ventured into the Middle East and made inroads into Latin America including Mexico, as well as the cabotage-protected OSV market in Indonesia.
Today, the group owns a fleet of over 37 OSVs, while its Indonesian associated company operates another 18 OSVs.
On the flipside, the fall in oil prices during the second half of 2014 continues to fuel concerns on the near term outlook of the oil and gas industry.
However, the group believes shallow water oil field development and production activities would be less affected given the lower break-even costs compared to projects in deepwater oil fields. Nonetheless, protracted oil weakness could invariably lead to price pressures in the offshore services supply chain.
“We continue to see new tenders for OSVs in our target markets despite the weaker oil price environment,” Ling pointed out.
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