Pacific Radiance has seen its fourth quarter loss decline by 25% on the back of higher revenue, reduced costs and a lack of losses from an associate company.
The Singapore offshore vessel operator lost $57.3m for the last three months of 2019, taking full-year losses to $83.3m.
Revenue in the fourth quarter was the one bright spot as it increased year-on-year by 41% to $20.7m, while the cost of sales was largely unchanged at $16.7m.
The increase was attributed mainly to an improvement at its offshore support services business, which reported a 44% increase in revenue to $15.5m.
There were also increases in revenue at its subsea business and shipyard business by 22% and 54% to $3.2m and $2m respectively.
The first two sectors were buoyed by higher vessel utilisation, while Pacific Radiance’s yard division completed more repair works.
“The improved financial performance of the group for 2019 was mainly attributed to higher chartering activities,” said Pacific Radiance executive chairman Pang Yoke Min.
However, he said the outlook for the next 12 months remains unpredictable, with the situation compounded by the recent outbreak of Covid-19.
Pang said these macro uncertainties have “impacted investors’ sentiments and the expected timeline for the group to complete its debt restructuring”.
Nevertheless, he said the group remained focused on its debt restructuring efforts, with “various options” said to be under discussion with the group’s advisors and lenders.
