Energy firm Pacific Radiance, which says it has "doubtful receivables" on its balance sheet due to exposure to embattled offshore marine company Swiber, posted a whopping loss in the second quarter.
It racked up red ink of US$57.7 million (S$77.5 million) for the three months to June 30, a significant reversal from its US$2.2 million profit for the same period a year earlier. Pacific Radiance, which owns and operates offshore vessels and provides subsea services to the energy industry, recorded an impairment of doubtful receivables of US$9.26 million for the quarter, a substantial jump from the US$45,000 for the same period a year earlier.
Revenue fell 42 per cent to US$20 million, compared with $34.8 million a year earlier. It attributed the fall to lower utilisation and lower charter rates of vessels in its offshore support services and subsea business units.
The firm said on Tuesday that it expects to make a provision of about US$10.1 million in relation to doubtful receivables from services rendered to Swiber.
It stressed that it is running a business that is different from Swi- ber's, adding that the firm's troubles will not affect its cash flow.
Loss per share came in at nine US cents for the six months to June 30, compared with earnings of 0.7 US cent for the period a year earlier.
AT A GLANCE
US$20 million (-42%)
US$57.7 million (not meaningful)
LOSS PER SHARE:
9 US cents (not meaningful)
Net asset value came in at 47.7 US cents per share as at June 30, a fall from 57.6 US cents as at Dec 31. Pacific Radiance shares closed up 0.2 cent at $0.125 yesterday.
Lee Xin En