Singapore’s Vallianz has reported a net profit of $3.1 million for the three months ended December 31, 2016, a drop from $4.7 million a year earlier.
Revenue for the quarter was $41.4 million, around 12 percent down $47 million recorded in the fourth quarer of 2015.
The offshore vessel owner, doing business mostly in the Middle East, has said the operating environment for offshore support vessel (OSV) operators remains difficult as the industry continues to be afflicted by intense competition, downward pressure on charter rates and low vessel utilization amid supply-demand imbalances in the OSV market.
At the end of 2016, the company ceased operations of its shipyard in Singapore and the provision of crew management and travel management services to the offshore oil and gas industry.
As at December 31, 2016, the Vallianz had an outstanding chartering services order book valued at approximately US$950.1 million in aggregate, comprising primarily long term charters which include 2- year extension options stretching up to 2025. These charter contracts are mainly with a national oil company in the Middle East.