Vallianz net profit improves 88% to $10.3m in FY2013

Buoyed by brisk growth in Saudi Arabia.

Singapore Exchange Catalist-listed offshore marine solutions provider Vallianz Holdings Limited (Vallianz) announced that it has achieved record earnings of US$10.3 million for the full year ended December 31, 2013 (FY2013).

Driven by the rise in demand for Vallianz’s chartering and brokering services and vessel management expertise, along with Vallianz’s expansion of geographical presence to the Kingdom of Saudi Arabia, Vallianz saw an impressive 88.0% surge in its net profit from US$5.5 million in the full year ended December 31, 2012 (FY2012) to US$10.3 million in FY2013.

Mr. Darren Yeo, Executive Director and Chief Executive Officer of Vallianz commented, “We are pleased to have achieved this record level of earnings and order book numbers built on a season of solid growth in contract wins and an increase of strategic equity investment into Vallianz by industry players in Singapore and Saudi Arabia. This has not only provided validation of Vallianz’s abilities and competencies but also raised our visibility in geographical regions with attractive prospects.”

It is noteworthy that in FY2013, Vallianz entered into a subscription agreement with Rawabi Holding Company Ltd (Rawabi), a leading Saudi Arabian oil and gas service company, in which Rawabi will be subscribing for redeemable convertible capital securities in Vallianz for a principal amount of US$35.2 million. The completion of this subscription exercise is expected before the end of three months ended March 31, 2014 (1Q2014). Vallianz also entered into an option agreement with Swiber Holdings Limited (Swiber), in which Swiber will be issued non-transferable share options, which when fully exercised, will raise a potential total gross proceeds of US$22.0 million for the Company.

Vallianz’s order book also grew exponentially reaching US$470.0 million as at 31 December 2013. In November 2013, Vallianz clinched new contracts-with-option to charter Platform Supply Vessels, to support exploration and production work in the Middle East; creating new business frontier as part of its strategic long-term diversified growth. The US$470.0 million order book is expected to be recognised from FY2014 onwards providing a stable growth outlook for the Company.

In addition, Vallianz also recognised its share of profits of US$1.6 million from its investment in a joint venture in the Kingdom of Saudi Arabia, which Vallianz acquired in three months ended December 31, 2013 (4Q2013). Arising from a new agreement with our Saudi partner which was completed subsequent to year end, we will be consolidating the results of the joint venture from 1Q2014.