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OFFSHORE and marine group Pacific Radiance reduced its third-quarter net loss by 27 per cent to US$13.16 million from a year-ago loss of US$17.97 million as efforts to contain operation and overhead costs gained traction.
On a per-share basis, net loss was 5.0 US cents for the third quarter. Net loss for the first nine months of the year narrowed to US$35.96 million, or 11.5 US cents per share, from a year-ago US$82.46 million.
No dividend has been declared for this financial period.
Third-quarter revenue declined 9 per cent to US$17.21 million from US$18.92 million, weighed by lower vessel utilisation and charter rates in the offshore support segment and by weaker subsea sales. However, the shipyard business, which began operation in the third quarter of 2016, contributed a US$1.7 million increase in revenue.
Cost of sales fell to US$18.79 million in the third quarter, a 31 per cent reduction from the same period a year earlier.
"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 conditions of the oil market is much needed to support our efforts to uplift fleet utilisation and build resilience in the shipyard business," said Pacific Radiance's executive chairman Pang Yoke Min.
"Whilst there has been growing optimism on a nascent recovery in the offshore market as oil prices trend above US$60 per barrel, operating conditions are still 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 said.
In addition, the group is making headway in raising fresh funds from potential investors, and in the process of working out a sustainable debt structure with its lenders, Mr Pang added.