SINGAPORE - Mainboard-listed Pacific Radiance announced on Thursday a 95 per cent plunge in net profit to US$902,000 (S$1.19 million) for the first quarter ended March 31, 2015, from US$17.8 million for the same period last year.
The offshore marine services provider said revenue for the quarter fell 25 per cent to US$31.5 million, as its subsea business saw revenue tumble 71 per cent to US$2.5 million from US$8.6 million in the same quarter last year, while revenue from its offshore support services business declined 13 per cent to US$28.6 million.
It added that this was because of the lower use of vessels from these two businesses as a result of what it called the "soft market conditions" in this quarter.
The group also posted a 63 per cent decline in other operating income to US$3.1 million. It cited the sale of two vessels in the same quarter last year, as it had not sold any vessels in this quarter.
Its earnings per share were 0.1 US cents, a sharp decline from the 2.5 US cents it declared in the same quarter last year. But its net asset value per share increased slightly to 59.6 US cents on March 31 from 59.5 US cents on December 31, last year.
Pacific Radiance said it expected its results over the next few quarters to continue to be affected by the "soft market conditions", but expected to "weather this situation and emerge stronger and leaner".
Citing the recovery of oil prices, it said it remained hopeful that its businesses would improve over the medium term once the market stabilised.
Pacific Radiance executive chairman Pang Yoke Min said the downturn had been "quite severe", but added that the group's support vessels were still being chartered out and sometimes had repeat customers. But even as the group worked to improve fleet utilisation, it had to ensure that its charter rates gave a "reasonable return on our assets", he said.