Pacific Radiance cautiously optimistic about 2017Company News // November 10, 2016
Pacific Radiance's executive chairman Pang Yoke Min says that, with Brent crude hovering at about US$45-50 per barrel, Pacific Radiance has seen a return of enquiries and awards for longer term charters in its key operating areas.
"These suggest that the sector’s downturn may be approaching the bottom," said Mr Pang. "However, while we are cautiously of the opinion that the level of activity may slowly pick up from 2017, we remain prudent and conservative in managing cash flows, operations and costs to ensure the sustainability of our businesses.”
Just this month, the group inked a US$73 million multi-year time charter, including options, for its maintenance workboat to support offshore development projects in the Gulf of Mexico.
The company says ongoing efforts to improve cost efficiency have helped buffer the full impact of the weak oil and gas market. The group reported revenue of US$18.9 million for its third quartrer of FY16 on the back of a net operating loss, excluding impairment charges, of US$16.1 million, as compared to US$16.9 million in the previous quarter, due in part to a 14 per cent reduction in general and administrative expenses to US$5.1 million.
The company's executive chairman said Pacific Radiance has focused on improving cost efficiency, strengthening its financials and conserving cashflows since the onset of the downturn in late 2014.
The company noted that this will be enhanced with the operation of its new ship repair yard (which opened in August 2016) which will help the company reduce repair and maintenance costs and docking expenses.