Vallianz posts a profit in most recent quarterCompany News // February 14, 2017
Vallianz Holdings has reported a net profit of US$3.1 million for the three months ended 31 December 2016. This brought the group’s net profit to US$15.6 million for the 12 months ended 31 December 2016.
Vallianz said its ongoing effort to rationalise its cost structure amid a slower market environment have also led to a substantial reduction in its administrative expenses. Finance costs also reduced considerably compared to the corresponding periods last year.
These cost savings helped to partially buffer the negative impact arising from lower gross profit, reduction in other income, foreign exchange loss, and share of results of associate and joint ventures.
Ling Yong Wah, CEO of Vallianz,said: "The group’s profitable performance was buoyed primarily by our stable operations in the Middle East and our continual efforts to optimise the group’s cost structure to be aligned with prevailing market conditions."
As of 31 December 2016, the group had an orderbook valued at approximately US$950.1 million, comprising primarily long term charters which include two-year extension options stretching up to 2025. These charter contracts are mainly with a national oil company in the Middle East.