Pacific Radiance stays profitable despite depressed marketCompany News // February 26, 2016
Pacific Radiance Ltd remained profitable for the full year ended 31 December 2015, despite depressed market conditions in the offshore oil and gas sector. The group reported a net attributable profit of US$3.8 million, even though it incurred a net loss of US$2.6 million for the fourth quarter of 2015.
Group revenue for FY15 fell by 29 per cent to US$121.8 million as a result of lower fleet utilisation for both offshore support services and subsea businesses, particularly in the fourth quarter, where they hit a seasonal low. During the year, swiftly implemented cost reduction measures cut general and administrative expenses by 21 per cent, partly alleviating the impact of lower revenue and margins.
Mr Pang Yoke Min, Executive Chairman of Pacific Radiance, said: “The downturn in the oil and gas sector has affected every player, including Pacific Radiance. We expect market conditions to remain difficult and volatile and these would pressure our results in the next 12 months. The group is strategically poised to ride through the current downturn, as we continue with our prudent cost and capital management as well as targeted marketing efforts to grow our presence in existing and emerging markets.”
Pacific Radiance has tried to carve out a presence in strategic market segments and oil producing regions by entering into key local partnerships in cabotage-protected markets such as Indonesia and Malaysia.
"Having better control over our supply chain, we are always improving our processes and resource management systems in order to further enhance our competitiveness and maximise cost-effectiveness. As part of continued efforts to upgrade our offerings and provide value-added solutions, we will launch our ship repair yard in mid 2016," said the company, noting that this will provide the company with greater control over fleet maintenance. "Rejuvenation of our fleet will also enable us to stay relevant to the market and expand our services in tandem with our clients’ needs," it said.