Singapore-listed offshore support vessel supplier Vallianz Holdings Ltd reported today a steady net profit in the first quarter of USD $5.5 million, despite utterly dismal market conditions globally within the offshore E&P sector. The company’s EBITDA increased 78.0% to US$19.84 million as compared to US$11.1 million in the corresponding quarter last year.
Vallianz’ CEO Mr Ling Yong Wah commented on their quarterly results:
“Vallianz was still able to deliver a respectable set of results in 1Q2015 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.”
The company owns a fleet of 39 OSVs and charters and additional 20 vessels in Indonesia via its 49%-owned associate company, PT Vallianz Offshore Maritim (PTVOM).
Vallianz says its OSV chartering business focuses on supporting shallow water oilfield activities which are less susceptible to capital expenditure reductions of the oil companies as compared to deep water projects. In addition, the company’s primary clients are national oil companies which have less volatile exploration and production spending patterns and mainly charter their vessels on 3 to 5 year terms.
“One of the Group’s key strengths is the strong foothold that we have established in the Middle East,” says Mr. Ling.
Allianz is the number two OSV supplier to the Middle East region, one of the few areas globally that is seeing growth in exploration and production spending. According to a report by Barclays in January, Saudi Aramco, ADNOC and Kuwait plan to increase spending by 14.9% in 2015.
“While the prevailing weak oil price environment continues to cloud the near-term outlook of the oil and
gas industry, the Group remains positive of its long term growth prospects.”
“We continue to focus on increasing the Group’s penetration in the Middle East, Asia, Latin America and
West Africa to maintain our status as a major OSV player. To this end, we are actively bidding for new
contracts totaling US$1.2 billion in these target markets,” commented Mr Ling.