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Vallianz sees doubled year-on-year growth as OSV charters soar in emerging markets

25th February 2015

Vallianz Holdings has unveiled, what it describes as, a sterling set of results for the financial year ended 31 December 2014, with net profit doubled to USD 20.4m from USD 10.3m a year ago

Vallianz Holdings has unveiled, what it describes as, a sterling set of results for the financial year ended 31 December 2014, with net profit doubled to USD 20.4m from USD 10.3m a year ago
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. Source: Vallianz Holdings

The sharp jump in profitability was fuelled mainly by a surge in revenue to USD 153.7m in FY2014, compared to USD 20.0m in FY2013.

Around 78 per cent 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.

“FY2014 was indeed a watershed year for Vallianz,” said Ling Yong Wah, CEO of 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.”

Based on its weighted average number of shares, the group recorded earnings per share of 0.79 US cents for FY2014, up from 0.63 US cents in FY2013. Net asset value per share also improved to 6.68 US cents as at 31 December 2014 compared to 3.59 US cents 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 organisational breadth, the group is better positioned to provide value-added services and solutions to customers of its vessel chartering and ship management businesses.

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