Lower margins and revenues due to soft market conditions battered second quarter profits at offshore marine services provider Pacific Radiance.
Net profit for the three months ended June 30 plunged 88 per cent to US$3.8 million. Revenue fell 29 per cent to US$34.8 million.
Gross profit margin for the three months fell from 47 per cent to 29 per cent due to softer market conditions.
Revenue for the three months fell mainly because revenue from the subsea business unit fell of a cliff, falling 97 per cent to US$400,000. This was mainly due to a lower utilisation of vessels as a result of softer market conditions.
Revenue from the offshore support services business also fell 3 per cent to US$32.7 million. The company noted, however, that revenue from this business had risen 17.8 per cent from the previous quarter due to a higher utilisation of offshore support vessels.
It also noted that its general and administrative expenses had fallen 31 per cent to US$5.5 million for the three months compared to the corresponding period last year.
Net profit for the first half of the year plummeted by 91 per cent to US$4.7 million, while revenue fell 27 per cent to US$66.3 million.
Executive Chairman of Pacific Radiance, Pang Yoke Min, said: "Moving forward, we expect to intensify our ongoing efforts to manage our revenue and costs in a lower oil price environment".
Earnings per share for the six months to June 30 was 0.7 US cents, down from 6.9 US cents last year.
Net asset value per ordinary share was 57.6 US cents, down from 59.5 US cents at December 31 last year.
No dividends were declared.
The company said that market conditions would continue to remain challenging and would not likely to improve for the rest of this year.
"However, long term fundamentals and prospects remain, and the Group will continue with increasing intensity its marketing and business development initiatives, cost management measures and prudent balance sheet management in order to weather this difficult year," it said.