Pacific Radiance takes a hit on H1 earnings

Net profit for the six-month period was recorded at $4.74m, a plunge of 91% compared to the gain of $50.2m in the previous corresponding period.

Revenue also fell by 27% year-on-year to $66.32m due mainly to lower utilisation of vessels from the subsea and offshore support services businesses.

“Moving forward, we expect to intensify our ongoing efforts to manage our revenue and costs in a lower oil price environment,” said Pang Yoke Min, executive chairman of Pacific Radiance.

The first half earnings were also hit by a 81% drop in other operating income to $5.2m due primarily to lower gain on sale of vessels, as five vessels were sold in the first half of 2014 as opposed to two in the first half of 2015.

Pacific Radiance said current market conditions continue to remain challenging and it expects that the situation is not likely to improve for the rest of this year.