Vallianz revenues surge on maiden contribution from its Indonesian unit

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JAKARTA (rambuenergy.com) –Vallianz Holdings Limited, a Singapore-based offshore supporting vessel (OSV) provider has reported a steady net profit of US$5.5 million for the three months ended 31 March 2015 despite the challenging business environment in the oil and gas industry. The increase was partly supported by its newly-acquired PT Vallianz Offshore Maritime.

Group revenue in 1Q2015 grew 119% to US$60.7 million. This was driven by higher revenue from the Group’s offshore support vessel chartering operations and new revenue streams from subsidiaries that it acquired in the last quarter of 2014.

As a result, gross profit increased 55 percent to US$16.0 million in 1Q2015. The Group’s gross profit margin however decreased to 26.4 percent from 37.3 percent for the three months ended 31 March 2014 due mainly to the change in its revenue mix and expansion of owned fleet.

Vallianz also recorded maiden profit contribution of US$1.04 million from its 49 percent-owned associate, PT Vallianz Offshore Maritim (“PTVOM”), which the Group acquired in December 2014 as a platform to penetrate the cabotage-protected market in Indonesia.

At the bottom line, the Group registered muted net profit growth in Q1 2015 due to additional administrative expenses of the acquired subsidiaries and increased finance costs. Nonetheless, its EBITDA (earnings before interest, depreciation and amortization) increased 78.0% to US$19.84 million compared to US$11.1 million in Q1 2014.

“Vallianz was still able to deliver a respectable set of results in Q1 2015 amid one of the toughest periods in the history of the oil and gas industry. We believe our resilient performance can be attributed to the robust business model that we have built for the Group,” CEO of Vallianz, Ling Yong Wah said.

Vallianz’s OSV chartering business focuses on supporting shallow water oilfield activities which are less susceptible to capital expenditure reductions of the oil companies compared to projects in deep water oil fields. The Group also has a successful record of securing mainly long term charter contracts of between 3 and 5 years which provide stable revenue streams. In addition, the Group serves primarily national oil companies which have less volatile exploration and production (E&P) spending patterns. (*)