In the first half ended 30 June 2016, Singapore-listed Pacific Radiance posted a loss of $64.49m as against the profit of $4.74m in the same period of last year. The loss was due mainly to impairment charges of $46m incurred during the second quarter.
Revenue in the six-month period declined by 42% year-on-year to $38.38m.
“This downturn in the O&G sector has been more severe and longer than expected,” said Pang Yoke Min, executive chairman of Pacific Radiance.
“In view of the challenging times ahead which may last another two to three years, we have prudently taken the step to impair the value of some of our vessels based on the current operating conditions over the vessels’ estimated useful lives. We have also made provisions for doubtful receivables,” he said.
Pang pointed out that the group has commenced operations of its ship repair yard in August this year, allowing it to have greater control over its fleet maintenance programme, as well as reduce repair, maintenance, and docking expenses.
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