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Vallianz books higher Q1 profit despite challenging offshore market

Vallianz books higher Q1 profit despite challenging offshore market
Offshore services firm Vallianz Holdings has delivered an improved first quarter results despite the challenging business environment in the oil and gas industry.

Net profit for the quarter ended 31 March 2015 went up by 5% to $4.97m compared to $4.73m in the previous corresponding period.

Revenue during the first three months of 2015 grew 119% year-on-year to $60.73m due mainly to higher contributions from the group’s OSV chartering operations and new revenue streams from subsidiaries that it acquired in the last quarter of 2014.

Vallianz highlighted that it also recorded maiden profit contribution of $1.04m from its 49%-owned associated, PT Vallianz Offshore Maritim, which the group acquired in December 2014 as a platform to penetrated the cabotage-protected market in Indonesia.

“Vallianz was still able to deliver a respectable set of results in 1Q2015 amid one of the toughest periods in the history of the oil and gas industry,” commented Ling Yong Wah, ceo of Vallianz.

Ling pointed out that one of the group’s key strengths is its strong foothold in the Middle East, and that it is a premier OSV supplier to one of the world’s largest national oil companies in the Middle East.

“We continue to focus on increasing the group’s penetration in the Middle East, Latin America and West Africa to maintain our status as a major OSV player. To this end, we are actively bidding for new contracts totalling $1.2bn in these target markets,” Ling said.

Singapore-listed Vallianz has a 50-50 joint venture firm Rawabi-Vallianz with Saudi Arabia’s oil and gas services firm Rawabi Holdings, allowing Vallianz to maintain its strong foothold in the Middle East. Approximately 70% of Vallianz’s revenue is derived from the Rawabi-Vallianz joint venture operations.

Apart from the core operations in the Middle East, Rawabi-Vallianz is looking to expand to countries like Egypt and Mexico, Rawabi’s group chairman Abdulaziz Ali AlTurki said last month.

Vallianz is also exploring opportunities to expand and enhance its fleet with specialised vessels. It currently owns a fleet of 39 OSVs while PT Vallianz Offshore Maritim operates another 20 vessels.

As at 31 March 2015, the group’s chartering services orderbook stood at approximately $461.6m.