Pacific Radiance reduces loss as restructuring continuesCompany News // November 10, 2017
Pacific Radiance says is losses narrowed by 26 per cent year-on-year, to US$13.4 million, in the third quarter as as cost-cutting measures gained traction.
It has descibed "growing optimism" about a market recovery, although oversupply is expected to keep charter rates low and operating conditions are expected to remain challenging.
it said discussions with potential investors on raising fresh funds and lenders to restructure existing debt are underway.
The company recorded revenue of US$17.2 million for the third quarter ended 30 September 2017 (3QFY17), an improvement from US$14.0 million for 1Q2017 and marginally lower than US$17.5 million for 2Q2017.
On a year-on-year basis, 3Q2017 revenue of US$17.2 million was 9 per cent lower due to lower vessel utilisation and charter rates but gross loss reduced by 81 per cent to US$1.6 million attributed largely to efforts to contain operating costs.
Further reduction of overhead costs helped to narrow after tax net loss by 26 per cent to US$13.4million.
Commenting on 3Q2017 performance, Pang Yoke Min, Executive Chairman of Pacific Radiance, said “To date, our cost-cutting efforts through right-sizing of our fleet and tightening control on operating costs and overheads have helped to improve performance at the bottom line.
"An improvement in the offshore oil and gas market is much needed to support our efforts to lift fleet utilisation and build resilience in our shipyard business.
"Whilst there is growing optimism about a recovery in the offshore market as oil prices trend above US$60/barrel, operating conditions are expected to remain challenging in the next 12 months as lingering supply overhang in the offshore market is expected to keep charter rates low."
Mr Pang added that the group is making headway raising fresh funds with potential investors and is in the process of working out a sustainable debt structure with its lenders.
“With a renewed capital structure, the liquidity position of the group will improve, allowing us to get through the current challenging environment and position the company for long term sustainable growth."