Vallianz records operating profit of US$ 20.3 mln for FY 2017
Vallianz Holdings Limited, an established provider of offshore support vessels and integrated marine solutions to the oil and gas industry, today reported its financial results for the 15 months ended 31 March 2017.
The Group’s financial year - end has been changed to 31 March from 31 December previously. The Group recorded a n operating profit before tax of US$ 20.3 million on revenue of US$247.8 million in FY 2017. Around 84 % of the Group’s revenue was generated by its vessel chartering and brokerage business which is buoyed primarily by long - term chart er contracts in the Middle East. This contribution was higher compared to 64% for the 12 months ended 31 December 2015, which is in line with the Group’s strategy to focus on its core vessel chartering and brokerage business.
Correspondingly, vessel management services accounted for a lower 15 % of Group revenue in FY 2017. Gross profit margin in FY2017 was slightly softer at 25. 2 % compared to 27.9% in FY 2015. This was due mainly to the renewal of certain existing contracts at a lower average charter rate ( as announced on 20 July 2015), which was partially cushioned by the Group ’s proactive management of operating costs.
As a result of the business slowdown in the offshore oil and gas industry, the Group had to record non - cash net impairment expenses totaling US$ 214.6 million, including impairment expenses of US$ 22.3 million attributable to non - controlling interests, for certain of its assets in FY 2017. These Exceptional Expenses caused the Group to slip into the red in FY2017 with a net loss of US$ 158.4 million.
About Vallianz Holdings Limited
Vallianz Holdings Limited is an established provider of offshore support vessels and integrated offshore marine solutions to the oil and gas industry. Headquartered in Singapore, the Group provides offshore marine services to oil majors and national oil co mpanies worldwide. Today, Vallianz owns and operates a young fleet of 52 offshore support vessels and covers markets in the Middle East, Asia Pacific and Latin America. To strengthen its foundation for growth, the Group is currently executing initiatives to expand its geographical reach, as well as broaden its range of marine assets and solutions. The Group also continues to seek opportunities and strategic alliances to increase its penetration in the major and emerging offshore oil and gas markets. Listed on SGX - Catalist, Vallianz is helmed by an experienced management team.