Net profit attributable to owners of the company for the financial year 2016 was registered at $13.81m, down 20.9% from the gain of $17.45m in the previous year.
Revenue also dropped by 10.1% year-on-year to $209.14m due mainly to lower vessel management income.
“The group’s profitable performance throughout 2016 was buoyed primarily by our stable operations in the Middle East and our continual efforts to optimise the group’s cost structure to be aligned with prevailing market conditions,” said Ling Yong Wah, ceo of Vallianz.
Ling pointed out that having a sound and stable base of operations in the Middle East have helped to sustain the group’s market position in Middle East despite rising competition, as well as partly mitigate the challenges faced in other regions where vessel charter rates are under pressure.
“In addition, the group has been implementing a cohesive strategy to streamline its business operations,” Ling said, refering in part to the cessation of operations of its shipyard in Singapore.
Vallianz noted that the operating environment for OSV operators remains difficult as the industry continues to be afflicted by intense competition, downward pressure on charter rates and low vessel utilisation amid supply-demand imbalances in the OSV market.
As at 31 December 2016, Vallianz had an outstanding chartering services orderbook valued at approximately $950.1m, comprising primarily long term charters which include two-year extension options stretching up to 2025.
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