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Offshore downturn unlikely to be prolonged: Pacific Radiance

Offshore downturn unlikely to be prolonged: Pacific Radiance
The current downturn in the offshore sector is not expected to persist over the long term due to growing global demand for oil and gas, according to offshore services firm Pacific Radiance.

The owner of more than 130 offshore vessels believed that from a marco perspective, expenditure for exploration and production of oil and gas is anticipated to continue to grow in the long run, as demand is also expected to continue to increase globally.

“We remain cautiously optimistic about the long term fundamentals of the oil and gas sector as energy demand is expected to grow with the rise in global population and affluence,” said Pang Yoke Min, executive chairman of Pacific Radiance.

The recent plunge in crude oil prices has resulted in lower charter and utilisation rates for both offshore oil rigs and OSVs, hitting the margins of offshore companies.

Pacific Radiance believed that it is well-positioned to weather the present challenges by expanding into key emerging markets, keeping its fleet relevant, strengthening its operational capabilities, and taking into account the eventuality of the oil and gas cycles.

Meanwhile, the Singapore-listed Pacific Radiance has achieved higher profit for its financial year ended 31 December 2014.

Net profit for the year rose 22% to $69.42m from $56.84m in 2013, supported by charters from its newly delivered OSVs as well as its ongoing fleet rejuvenation program and lower interest costs.

Revenue inched up 2% year-on-year to $172.22m largely due to higher contribution from its offshore support services arm.

TAGS: Offshore