Vallianz Holdings Limited, a fast growing provider of offshore support vessels and integrated marine solutions to the oil and gas industry, has reported a steady net profit of US$5.5 million for the three months ended 31 March 2015 despite the challenging business environment in the oil and gas industry.
Group revenue in 1Q2015 grew 119% to US$60.7 million. This was driven by higher revenue from the Group’s offshore support vessel chartering operations and new revenue streams from subsidiaries that it acquired in the last quarter of 2014. As a result, gross profit increased 55% to US$16.0 million in 1Q2015.
The Group’s gross profit margin however decreased to 26. 4 % from 37. 3 % for the three months ended 31 March 2014 due mainly to the change in its revenue mix and expansion of owned fleet. The Group also recorded maiden profit contribution of US$1.04 million from its 49% - owned associate , PT Vallianz Offshore Maritim (“ PTVOM ”) , which the Group acquired in December 2014 as a platform to penetrate the cabotage - protected market in Indonesia .
At the bottom line, the Group registered muted net profit growth in 1Q2015 due to additional administrative expenses of the acquired subsidiaries and increased finance costs. Nonetheless, its EBITDA (earnings before interest, depreciation and amortisation) increased 78.0% to US$19.84 million compared to US$11.1 million in 1Q2014.