Vallianz sees profit growCompany News // November 8, 2017
Vallianz Holdings Limited’s CEO Ling Yong Wah says the company had net attributable profit for its second quarter, which ended on 30 September 2017, of US$5.3 million.
This was a significant increase compared with the corresponding quarter in 2016, when the figure was just US$0.9 million.
Although the company experienced lower utilisation for certain vessels outside of the Middle East region, this was mitigated by revenue contributions from ongoing long-term charters in the Middle East, as well as the start of new charter contracts.
Mr Ling said that, although the global oil market could be showing early signs of recovery, the OSV sector continues to face excess supply. This inevitably exerts pressure on vessel utilisation rates and charter rates. However, despite this challenging business backdrop, Vallianz has seen its operating profit improving quarter after quarter since September 2016.
Mr Ling said this validated the company’s “resilient business model” that focuses on long-term vessel charters with national oil companies. “It is also testament to our operations in the Middle East and concerted restructuring efforts,” he said.
As one of the largest OSV players in the Middle East, the company believes it remains in good stead to capitalise on business opportunities in that region.
“We continue to work on sharpening our competitive edge in the OSV industry through differentiation of our services and vessel fleet,” he said, noting that the company also plans to focus more in future on other regions, such as Central Asia.”