Vallianz Holdings Limited (Vallianz and together with its subsidiaries, the Group), a fast growing provider of offshore support vessels (OSV) and integrated marine solutions to the oil and gas industry, unveiled Wednesday a sterling set of results for the financial year ended Dec. 31, 2014 (FY2014) as net profit has doubled to $20.4 million from $10.3 million a year ago.
The sharp jump in profitability was fuelled mainly by a surge in revenue to $153.7 million in FY2014, compared to $20.0 million in FY2013. Around 78 percent of revenue was derived from the Group’s vessel chartering business. This segment’s revenue grew significantly on the back of contributions from its OSV chartering operations in the Middle East, as well as the start of new charters during the fourth quarter of 2014. The remaining revenue was generated from ship management services, shipyard services and investments.
Based on its weighted average number of shares, the Group recorded earnings per share of $0.0079 for FY2014, up from $0.0063 in FY2013. Net asset value per share also improved to $0.0668 as at Dec. 31, 2014 compared to $0.0359 in the previous year.
During FY2014, Vallianz witnessed rapid expansion of its business operations as it took steps to build a sturdier foundation for growth. Besides increasing its market penetration in the Middle East, the Group made successful inroads into Latin America including Mexico, as well as the cabotage-protected OSV market in Indonesia to broaden its earnings base. Today, the Group owns a fleet of over 37 OSVs, while its Indonesian associated company operates another 18 OSVs.
Last year, the Group boosted its in-house capabilities and achieved further integration with the purchase of a marine base in Batam, Indonesia and a shipyard in Singapore. It also acquired a Singapore-based company that provides professional crew and related services to the offshore industry worldwide. By extending its organizational breadth, the Group is better positioned to provide value-added services and solutions to customers of its vessel chartering and ship management businesses.
Ling Yong Wah, CEO of Vallianz said, “FY2014 was indeed a watershed year for Vallianz. The Group not only chalked up a record financial performance, we also worked relentlessly to break into new markets and reinforced our capabilities to ensure that the building blocks are firmly in place for long-term growth. The Group will stay the course to propel Vallianz towards our goal of becoming a major provider of OSVs to the global offshore oil and gas industry.”
The fall in oil prices during the second half of 2014 continues to fuel concerns on the near-term outlook of the oil and gas industry and reductions in capital expenditures of oil companies. However, the Group believes shallow-water oil field development and production activities would be less affected given the lower break-even costs compared to projects in deep water oil fields. Nonetheless, protracted oil weakness could invariably lead to price pressures in the offshore services supply chain.
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