Vallianz, backed by its strategic Saudi Arabian shareholder and partner Rawabi Holding, claims that it has grown its Middle East business to become one of the largest OSV players in that region.
“We continue to commence new long term charter contracts with the NOC (National Oil Company) and have deployed a total of six vessels during the first half of 2017,” said Ling Yong Wah, ceo of Vallianz.
“We expect to deploy more vessels for the remainder of this year. These contracts are expected to provide incremental revenue on top of the ongoing long term charters with the NOC,” he said.
As at 30 June 2017, the group’s chartering services orderbook was approximately $990m, comprising mainly long term charters that stretch up to 2025, including two-year extension options.
Revenue contributions from the ongoing long term charters in the Middle East as well as the start of new long term contracts during April-June 2017 have helped to mitigate lower utilisation for certain vessels outside of the Middle East region.
“The offshore support vessel sector continues to be weighed down by weak vessel utilisation and depressed charter rates in most markets,” Ling noted.
Despite the harsh market conditions, Valianz registered a profit of $4.71m for its first quarter financial results for the three months ended 30 June 2017, up 17.9% compared to the profit of $3.99m in the previous corresponding period. This was due mainly to an absence of an impairment charge of $1.62m that was recorded in the year-ago period.
The first quarter revenue, however, dipped by 35.2% year-on-year to $41.22m due mainly to the completion of various one-time vessel management projects in the second half of 2016.
Following the series of cost rationalisation, operations streamlining and restructuring activities, as well as an asset writedown exercise undertaken in the last financial year, Vallianz believes it is better positioned to deal with current market challenges and focus on building the future.
In addition to its strong footing in the Middle East, the group has made headway in its strategy to penetrate new target markets with the start of new vessel charters in Egypt and Turkmenistan in May this year.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
