Pacific Radiance's Q4 profit falls 69% in difficult operating climate

PACIFIC Radiance, a provider of integrated offshore marine services in Asia, reported on Thursday that its net profit for the fourth quarter ended Dec 31, 2014, fell 69 per cent to US$5.05 million, compared to US$16.37 million a year ago.

The weaker results were attributable to the decrease in gross profit from its subsea and offshore support services due to the softer market conditions during the quarter.

Revenue fell 12 per cent to US$37.21 million, from US$42.38 million a year ago.

For the full year 2014, net profit rose 20 per cent to US$68.32 million from US$56.76 million. Its bottom line got a boost from the US$18.9 million gain from the sale of vessels. Eight vessels were sold in FY 2014 as part of its fleet rejuvenation programme and injection of vessels into joint ventures.

Revenue was up 2 per cent at US$172.22 million.

The board has proposed an ordinary dividend of three Singapore cents per share for FY14 compared with two Singapore cents for FY13.

Pacific Radiance said the current market conditions present a challenging business environment for the offshore support services sector, but it is well-positioned to weather them.

It said that in spite of the difficult operating conditions in the fourth quarter, the group has secured long-term charters worth more than US$200 million for its newbuilds, including a five-year contract worth over US$70 million with extension options for a newly delivered offshore support vessel in 2014.

"I am confident that the steps we have taken to shore up our balance sheet and improve our efficiency, as well as our proven and scalable business model to provide the market with relevant vessels will enable Pacific Radiance to ride through this current period of volatile oil prices,'' executive chairman Pang Yoke Min said.

"Whilst short term results may be affected, the Group continues to see opportunities in its businesses as it remains focused on executing its strategies and staying responsive to changes in the business environment."