Profit attributable to owners for the three months ended 30 September 2016 was recorded at $693,000, a sharp fall from $4.59m in the same period of 2015.
The bottomline was impacted by a 488.6% jump to $2.12m in profit attributable to non-controlling interests, due mainly the profit contribution by a subsidiary which is not wholly-owned by the group.
Vallianz also recorded a loss of $121,000 from its share of results from associate and joint ventures in the first nine months of 2016, due mainly to the loss reported by PT Vallianz Offshore Maritim, the group’s 49% owned associated in Indonesia.
From January to September 2016, Singapore-listed Vallianz posted a profit of $9.15m, down 31.4% from $13.33m in the year-ago period.
“Notwithstanding the difficult business environment, the group has consistently generated profits for three consecutive quarters this year,” said Ling Yong Wah, ceo of Vallianz.
The lower earnings in the first nine months were due to slower demand for OSVs and intense industry competition in regions other than the Middle East. Vallianz, which is 18.7% owned by Saudi Arabia’s Rawabi Holding Company, noted that there are still business opportunities in the Middle East due to continued spending on oil and gas production activities by national oil companies.
As at 30 September 2016, Vallianz had an outstanding chartering services orderbook valued at approximately $1bn, comprisingly primarily long term charters with options to extend up to 2025. These charter contracts are chiefly with a national oil company in the Middle East.
In early November, Vallianz assured bondholders that it will be redeeming in full the SGD60m ($43m) fixed rate notes due to mature on 22 November. The redemption of the notes will be funded by internally generated funds as well as advances from Rawabi.
Vallianz, which is 25.2% owned by Swiber now under judicial management, added that it will continue to closely monitor and evaluate the impact of Swiber’s developments.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
