Net loss for the third quarter was recorded at $17.97m as against the profit of $1.67m in the same period of 2015.
Third quarter revenue plunged by 44% year-on-year to $18.92m due mainly to lower utilisation and lower charter rates of vessels from its offshore support services business as a result of the softer market conditions.
Pang Yoke Min, executive chairman of Pacific Radiance, pointed out that the company has been focused on strengthening its financials and conserving cashflows since the onset of the oil and gas industry downturn in late-2014.
“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,” Pang said.
“We also expect significant preservation of our cashflow 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 totaling $185m due in the near to medium term,” he said.
With Brent hovering at about $45-50 per barrel, Pacific Radiance has seen a return of enquiries and awards for longer term charters in its key operating areas.
“These suggest that the sector’s downturn may be approaching the trough. However, while we are cautiously of the opinion that the level of activity may slowly pick up from 2017, we remain prudent and conservative in managing cashflows, operations and costs to ensure the sustainability of our businesses,” Pang said.
Just this month, Pacific Radiance landed a $73m multi-year time charter, including options, for its maintenance work boat for work in the Gulf of Mexico.
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