Pacific Radiance says the offshore market’s downturn may have approached the bottom as the company swung to a third quarter loss.
The Singaporean owner booked a net loss of $18.1m including impairment charges of $16.9m, compared to a $1.6m profit at the same stage of 2015.
Lower utilisation and charter rates continued to erode the company’s revenue at $18.9m, a decline of 44%.
The owner is now focusing on managing cash flows after stretching its loan maturity dates from 2019 to 2021.
Pang Yoke Min, executive chairman, said: “We have focused on improving our cost efficiency, strengthening our financials and conserving cash flows since the onset of the oil and gas industry in late 2014.
“We expect significant preservation of our cash flow in the coming quarter from our recently concluded arrangements with our key bankers.”
With Brent hovering around $45-50 per barrel, Pacific Radiance said it has seen a return of enquiries and awards for longer term charters.
“These suggest that the sector’s downturn may be approaching the trough,” Pang added.
