A weaker showing from the offshore support services business plunged Pacific Radiance into the red in the third quarter.
The offshore marine support services firm posted a net loss of US$18 million (S$25 million) for the three months ended Sept 30 - a reversal from the US$1.7 million net profit in the same period a year earlier. Revenue sank 44 per cent to US$18.9 million as turnover from the offshore support services business nearly halved to US$13.5 million.
"The decrease in revenue was mainly attributable to lower utilisation and lower charter rates of vessels from our offshore support services business as a result of the softer market conditions in (the third quarter)," Pacific Radiance said in releasing its results on Tuesday.
The company logged a net loss of US$82.5 million for the nine months to Sept 30, compared with a net profit of US$6.4 million previously. Revenue fell 43 per cent to US$57.3 million. Loss per share came in at 11.5 US cents, down from earnings per share of 0.9 US cent previously. Net asset value per share stood at 45.5 US cents as at Sept 30, lower than the 57.3 US cents as at Dec 31 last year.
"We have focused on improving our cost efficiency, strengthening our financials and conserving cashflows since the onset of the oil and gas industry downturn in late 2014," said Pacific Radiance executive chairman Pang Yoke Min.
"This will be enhanced with the operation of our new ship repair yard since August 2016, which will help to reduce our repair and maintenance costs as well as docking expenses going forward.
AT A GLANCE
US$18 million (N.A.)
US$18.9 million (-44%)
"We also expect significant preservation of our cash flow in the coming quarters from our recently concluded arrangements with our key bankers and financial partners to refinance our term loans and renew our revolving credit facilities totalling US$185 million due in the near to medium term."
Pacific Radiance last month said it had extended existing term loans and renewed its credit facilities on US$185 million due in the near to medium term. The profile of the group's term loans has been refinanced to 12 years from an average of seven years previously, with maturities largely extended from 2019 to 2021. The reduction in loan principal repayments of about US$103 million over the next three years to 2019 is expected to enhance its liquidity position and financing cashflows in the near to medium term, it said.
Shares of Pacific Radiance closed 0.1 cent or 0.6 per cent higher at 15.5 cents yesterday.