The net profit of Singaporean offshore support vessels provider Vallianz Holdings plunged by 42.5% yoy to 3.00 million USD in Q3 2016. Since the beginning of the year (9M 2016) the company profit amounted to 12.5 million USD. The decreases were due mainly to lower contributions from its vessel management services, which is in line with the Group’s strategy to focus on expanding its core vessel chartering and brokerage business. However, downtrend in revenue during Q3 2016 was quite smaller at only 8.4% yoy and amounted to 54.8 million USD. Vallianz Holdings continue to generate profits, despite of the delay in offshore business and reduced number of new orders.
The decreased revenues and profits were the result of slower demand for offshore support vessels and intense industry competition in regions other than the Middle East. To buffer the impact on its profitability and adapt to the current market environment, Vallianz Holdings has been focusing on optimizing its cost structure and laid-off of standby workforce.
“Notwithstanding the difficult business environment, the Group has consistently generated profits for three consecutive quarters this year. To sustain the Group’s competitiveness and cement its market position as a leading offshore support vessel provider to one of the largest national oil companies in the Middle East, we will continue to focus on strengthening our core capabilities to deliver operational excellence and value to our customers”, said the CEO of Vallianz, Ling Yong Wah. “Although business conditions in the global offshore oil and gas industry are likely to remain depressed and competition in the Middle East has been increasing, there are still business opportunities for the Group in this region due to continued spending on oil and gas production activities by national oil companies”, added he during the presentation of finance statement.
Vallianz Holdings is a provider of offshore support vessels and integrated offshore marine solutions to the oil and gas industry. The company serves oil majors and national oil companies worldwide, and focuses on supporting customers’ offshore exploration and production operations in shallow waters. Vallianz Holdings operates a fleet of 66 offshore support vessels.