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Vallianz sees stable Q3 profit despite difficult operating environment

Singapore’s Vallianz Holdings has reported stable profit for the third quarter and revenue jumped on the back of higher contributions from the OSV chartering operations.

Lee Hong Liang, Asia Correspondent

November 13, 2015

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Third quarter profit attributable to owners of the company was registered at $4.59m, down 4.7% from $4.82m in the same period of last year.

The quarter revenue surged by 52.4% year-on-year to $59.83m with higher earnings from offshore vessels chartering, in tandem with the growth of the group’s fleet size, as well as new revenue streams from subsidiaries acquired in the last quarter of 2014.

As at the end of September 2015, Vallianz’s chartering business had a fleet of 40 OSVs, compared to 33 vessels as at end-September 2014.

“The ability to sustain our profitability under present market circumstances reflects the resilience of our business model which is primarily built on long term vessel charters to national oil companies,” said Ling Yong Wah, ceo of Vallianz.

The operating environment for OSV operators has been and is expected to remain challenging due to the prevailing weakness in the global oil market.

Vallianz pointed out that its OSV chartering business focuses on supporting projects located in shallow water oilfields, and has established a strong presence in the Middle East where there is still sustained levels of oil production activity.

At present, the group’s chartering services orderbook of $940m comprises mainly of long term charters that stretch up to 2022. This compares to its orderbook of $540m as at 31 December 2014.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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