VESSEL provider Vallianz Holdings on Monday reported a 1.6 per cent drop in net profit to US$4.9 million, while revenue fell 18.8 per cent to US$49.3 million in its first quarter ended March 31, 2016.
Earnings per share fell from 0.15 US cents a year ago, to 0.14 US cents in the latest quarter.
The group said that the lower revenue was due to the absence of contributions from ship management projects in Latin America which were completed in late 2015, the renewal of certain existing contracts with a customer in the Middle East in July 2015 at lower average charter rates, and a change in the revenue mix of the chartering and brokerage services business.
That said, cost rationalisation efforts have helped to mitigate the impact of lower revenue on earnings.
Separately, the company also said that it has been awarded a time charter contract valued at up to US$63 million for the supply of two offshore support vessels to a national oil company in the Middle East.
The group will supply the two Anchor Handling Tug, Supply and Safety Standby (AHTSS) vessels for a period of up to seven years.
The first AHTSS vessel is expected to be deployed to the customer's oil fields in the Arabian Gulf during the third quarter of 2016, while the second vessel is scheduled for deployment in the first quarter of 2017.
The new contract lifts the group's chartering services order book to US$950 million, which comprises mainly of long term charters stretching up to 2024.
Vallianz is presently bidding for charter contracts with a combined value of US$1.7 billion, mainly for projects located in the Middle East.