Singapore's Vallianz Holdings reported an 18.8% drop in its revenue in Q1, in addition to being awarded a US$63 million charter contract to supply two offshore support vessels (OSV) to a national oil company in the Middle East.
The company's revenue dipped to $49.3 million, from the $60.7 million earned in Q1 2015.
This was due to the completion of ship management projects in late 2015, lower average charter rates and a change in the revenue mix of its OSV chartering and brokerage business, and ship management services.
The chartering and brokerage business accounted for 69% of revenue, while the remaining was derived from ship management and shipyard services, and investment segment.
Although total revenue was lower, the group was able to increase its gross profit margin to 29.3% from 26.4% in Q1 2015. This was attributed mainly to the higher revenue contribution of the group’s OSV chartering business, coupled with efforts to maximize cost savings from vessel operations and labor expenses.
As a result of its cost rationalization efforts, Vallianz had a steady net profit of $5.5 million in Q1 2016 compared to $5.6 million year-on-year.
CEO of Vallianz Ling Yong Wah said,” We are also securing new charter contracts to build on our order book. The group unveiled a new long term charter contract win worth up to $63 million for the supply of two OSVs to a national oil company in the Middle East.
“This latest award raises Vallianz’s order book to approximately US$950 million, comprising mainly long term time charters stretching up to 2024,” he said.
The Middle East deal will see Vallianz supply two anchor handling tug, supply and safety standby (AHTSS) vessels to an unnamed Middle Eastern company for a period of up to seven years. The first AHTSS vessel is expected to be deployed to the oil fields in the Arabian Gulf during Q3 2016 while the second vessel is scheduled for deployment in the Q1 2017.
The new contract lifts the group’s chartering services order book to $950 million, which comprises mainly of long term charters stretching up to 2024. Vallianz recently commenced the charters for the four AHTS vessels and its specialized offshore floating storage and supply vessel, which have been deployed to the NOC’s oil fields in the Middle East. It is presently bidding for charter contracts with a combined value of $1.7 billion, mainly for projects located in the Middle East.
The firm will continue working to maintain its market position in the Gulf region. It is presently bidding for charter contracts with a combined value of $1.7 billion, mainly for projects located in the Middle East. Vallianz owns and operates 42 OSVs.
Image of the Vallianz Hope vessel, from Vallianz.
Subscribe
