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Pacific Radiance books Q1 loss amid weak offshore operating conditions

Pacific Radiance books Q1 loss amid weak offshore operating conditions
Offshore marine services provider Pacific Radiance saw its first quarter results sink into the red due to lower charter and utilisation rates of its offshore vessels amidst very challenging market conditions.

Pacific Radiance’s first quarter loss was reported at $6.76m as against the net profit of $2.53m in the same period of last year.

Revenue for the quarter was registered at $18.37m, down 42% from $31.54m in the year-ago period due mainly to the significantly weaker operating conditions in the oil and gas market arising from the severe drop in oil prices.

The group saw lower charter rates and utilisation of its fleet of subsea and OSVs, which affected contributions from its core subsea and OSV businesses.

“The sector outlook remains challenging and uncertain over the medium term. We will stay focused on enhancing cash flow management, whilst executing the strategic tactical initiatives we have put in place to sustainably overcome the downturn,” said Pang Yoke Min, executive chairman of Pacific Radiance.

The company noted that oil prices seem to have been stabilising around $40 per barrel recently, although this glimmer of hope will take time to manifest into financial results as the sector typically experiences a lag period for the effect of higher oil prices to boost activities.