Vallianz records hefty losses
Offshore support vessel provider Vallianz Holdings bled red ink during the latest quarter as it took hefty write-downs of more than US$200 million (S$277 million).
The firm yesterday reported a net loss of US$173.2 million for the three months ended March 31, a reversal from the net profit of US$4.9 million in the same period a year earlier.
Revenue slumped 21.5 per cent to US$38.7 million, mainly due to the completion of various one-time vessel management projects in the second half of last year, Vallianz said.
The group also saw lower utilisation from some of its existing fleet of vessels in the current challenging market conditions, despite the commencement of new contracts.
Vallianz has changed its financial year to end on March 31 instead of Dec 31, and so reported its full-year results for a period of 15 months.
While the group made an operating profit of US$23.1 million for the five quarters to March 31, it was substantially bogged down by exceptional expenses in addition to lower operational profitability.
The exceptional expenses came from recognising additional writedowns of US$212.9 million in the latest quarter, after evaluating the carrying value of some assets.
This brought total exceptional expenses for the year to US$214.6 million.
Vallianz had a net loss of US$159.4 million for the 15 months after a net profit of US$17.5 million for the full year of 2015. Revenue rose 6.6 per cent to US$247.8 million.
It posted a loss per share of 4.38 US cents for financial year 2017, after earnings a share of 0.56 US cent for 2015. Net asset value a share was 4.12 US cents as at March 31, from 7.13 US cents at Dec 31, 2015.