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Vallianz Q3 profit slumps 84.9 per cent

VALLIANZ Holdings' third quarter net profit plunged 84.9 per cent to US$693,000 on sharply higher profit to non-controlling interests and lower share of profit of associate and joint ventures.

Earnings per share fell to 0.02 US cents from 0.14 US cents in the year-ago quarter. Net profit to non-controlling interests rose 488.6 per cent to US$2.12 million. Revenue for the quarter ended Sept 30, 2016, was also down 8.4 per cent to US$54.79 million.

Share of profit of associate and joint ventures was 64.7 per cent lower at S$771,000.

Nine-month net profit was down by 31.4 per cent to US$9.15 million.

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Vallianz said the net profit to non-controlling interests was sharply up mainly on profit contribution by a subsidiary not wholly-owned by the listed group.

The listed group said an increase in charter Q3 revenue was more than offset by a decrease in vessel management revenue mainly due to completion of ship management projects in Latin America in late 2015. Gross profit margin for Q3 slipped to 21.7 per cent from 28.1 per cent last year on lower charter rates.

The group recorded a loss of US$121,000 from its share of results from associate and joint ventures for the nine months ended Sept 30, 2016, due to a loss reported by PT Vallianz Offshore Maritime, a 49-per-cent owned associate in Indonesia acquired by the group on Dec 31, 2014.