Vallianz' Q3 net profit crashes 43% to $4.3m

Slower demand for offshore vessels in resulted to muted earnings.

Singapore-listed offshore support vessels provider Vallianz Hoildings Ltd. has repoerted a net profit of $4.3m (US$3.04m) in 3Q16, down 42.5% from $7.5m (US$5.3m).

The group attributed this decline to softer gross profit margins.

"This was the result of slower demand for offshore support vessels and intense industry competition in regions other than the Middle East," the group said.

For the said period, the group reported a revenue of US$54.8m, an 8.4% decline due to lower contributions from its vessel management services.

The group noted that this is line with their strategy to focus on expanding its core vessel chartering and brokerage business.

Vallianz CEO Ling Yong Wah stressed that even as the business conditions in the global offshore oil and gas industry are likely to remain depressed there is still opportunities for the group to due to continued spending on oil and gas production activities by national oil companies in the Middle East.

"Notwithstanding the difficult business environment, the Group has consistently generated profits for three consecutive quarters this year. To sustain the Group’s competitiveness and cement its market position as a leading offshore support vessel provider to one of the largest national oil companies in the Middle East, we will continue to focus on strengthening our core capabilities to deliver operational excellence and value to our customers," he said.