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Vallianz slips to the red in Q1 with US$173.2m loss
VALLIANZ Holdings suffered a net loss of US$173.2 million for the three months ended March from a profit of US$4.9 million a year ago due to substantial non-cash impairment expenses on the back of a sector slowdown.
The offshore support vessels provider saw quarterly revenue fall 21.5 per cent to US$38.7 million from US$49.3 million for the period mainly due to completion of various one-time vessel management projects in the second half of 2016.
Also, despite the commencement of new contracts over the fifth quarter (it had changed its financial year from end December to end March), the group experienced lower utilisation from certain existing fleet of vessels amid a challenging environment.
It reported a loss per share of 4.38 US cents for the period versus earnings per share of 0.56 US cents a year ago.
No dividend was recommended.
For the 15 months ended March 2017, Vallianz reported a net loss of US$159.4 million from a profit of US$17.5 million over the 12 months to December 2015 on the back of a nearly 7 per cent increase in revenue to US$247.8 million.
The losses for the FY2017 period were due to a slowdown in the offshore oil and gas sector which led the group to record non-cash net impairment expenses of US$214.6 million for certain of its assets.
Vallianz requested for a trading halt on Monday pending release of an announcement