Pacific Radiance notes small increase in activityCompany News // August 14, 2017
Pacific Radiance Ltd achieved revenue of US$17.5 million for the second quarter ended 30 June 2017 (2QFY17), better than the US$12.1 million and US$14.0 million posted for 4QFY16 and 1QFY17 respectively. EBITDA turned positive to US$4.3 million in 2QFY17 and US$1.6 million in first half of FY17.
The improved topline for 2QFY17 was due to higher utilisation of its offshore support and subsea services fleet, as well as a steady rise in repair revenue from the group’s shipyard, which started operations in August last year.
These developments and heightened cost-cutting measures enabled Pacific Radiance to narrow its net loss after tax to US$8.5 million from US$15.2 million in the first quarter and US$16.9 million (before impairments) in 2QFY16.
Pang Yoke Min, Executive Chairman of Pacific Radiance, said: “We have been proactive and prudent in managing our costs and cashflow while ensuring that we do not compromise on quality or our ability to service current contracts and take on new work.
“Although there has been a pick-up in activity in the offshore market, operating conditions are expected to remain challenging over the next 12 months. Thus, the group has taken additional measures to rein in costs, which include further right-sizing of our fleet and reduction of overheads, even as we press on with our marketing efforts.”
In line with its goal to build a sustainable business for the long term, Pacific Radiance has ‘warm stacked’ several of its vessels, and the cost savings from this move are expected to flow through from 3QFY17.
“We will continue to focus on growing revenue while exercising prudence in our cashflow management. We have worked closely with our lenders to assess our debt position and working capital requirements since the industry downturn began in late 2014.
"In addition, we recently appointed advisers to review our overall capital structure and develop plans that will allow Pacific Radiance to sustain its operations in the current environment and for the long term."