SINGAPORE - Pacific Radiance narrowed its fourth-quarter net loss to US$76 million from a net loss of US$296.5 million a year ago, thanks to lower costs and reduced losses from its joint ventures, the debt-ridden offshore marine group announced on Friday (March 1).
For the full year ended Dec 31, 2018, net loss shrank from US$332.6 million in FY2017 to $99.4 million in FY2018. This translated to a loss per share of 13.9 US cents, from a loss per share of 46.6 US cents previously. The company will not pay any dividends, similar to the preceding year.
For the three months ended Dec 31, revenue fell 22 per cent to US$14.7 million as subsea revenue fell 64 per cent to US$2.6 million while offshore support services revenue grew 4 per cent to US$10.8 million.
Pacific Radiance's share of losses from joint ventures shrank from US$16.6 million in Q4 2017 to US$279,000 in Q4 2018. The company noted that the higher losses in the fourth quarter last year was attributable to the group's Malaysian joint ventures as a result of vessel impairment.
Other operating expenses shrank by 80 per cent to US$54 million during the quarter, from year-ago expenses of US$274.8 million. This was mainly due to lower impairments, the company said.
Looking ahead, executive chairman Pang Yoke Min said: "Our results for FY2018 reflect the challenging market conditions for the OSV (offshore support vessel) sector. Whilst we are seeing positive trends in chartering activities, charter rates in the near term is expected toremain subdued due to the persistent supply overhang in the OSV sector.
"The path toward a broad-based sector recovery may continue to encounter setbacks, as geopolitical and trade tensions continue to cloud sentiments across markets and outlook for the next 12 months is far less predictable."
Pacific Radiance has been a victim of the overcapacity that has hit the offshore support vessel market, and its shares have been on voluntary trading suspension since late February.
Commenting on the restructuring progress, Mr Pang said: "The group continues to maintain its focus on implementing its restructuring plan. We are concurrently evaluating a merger proposal with a provider of vessel chartering and logistics services, which will kickstart the group's move into adjacent market segments and expand our geographical footprint and service offerings in the OSV space."