Singapore's Pacific Radiance Ltd. (Pacific Radiance or the Group), a provider of integrated offshore marine services in Asia and beyond, reported Thursday a 20 percent rise in net attributable profit (PATMI) to $68.3 million for the full year ended Dec. 31, 2014 (FY14).
The year's higher earnings was mainly supported by charters from its newly delivered offshore support vessels as well as its ongoing fleet rejuvenation program and lower interest costs.
Group revenue also rose to $172.2 million, largely due to higher contribution from its Offshore Support Services arm despite the challenging operating conditions in the Oil & Gas (O&G) sector, especially in the fourth quarter (4QFY14). The division posted a revenue of $128.1 million in FY14, 17 percent above FY13's $109.3 million on the back of new charters secured.
At the Subsea Services unit, revenue came in lower at $33.4 million, as its two diving support vessels (DSVs) were drydocked for enhancement works and experienced lower utilization in the second half of the year.
The Board of Pacific Radiance has proposed an ordinary dividend of $0.024 (SGD 0.03) per share for FY14 compared with FY13’s $0.016 (SGD 0.02). This higher dividend is well supported by the Group's strong net operating cashflow which more than doubled to $61.3 million in FY14, and its improved financial position, as well as after considering its working capital and capital expenditure requirements. As at end December 2014, the Group had grown its shareholders’ funds by 14 percent to $428.0 million, and pared its net gearing to 0.5 times from 0.6 times a year ago.
Pang Yoke Min, the executive chairman of Pacific Radiance, said: “Our results reflect the resilience of our business model, buttressed by our steps to strengthen the Group’s financial position during the year.”
In spite of the difficult operating conditions in 4QFY14, the Group successfully secured long term charters worth more than $200 million for its newbuilds, including a 5-year contract worth over $70 million with extension options for a newly delivered offshore support vessel in 2014. Revenue from the Offshore Support division increased by 12 percent to $29.7 million in the quarter. However, the lower DSV utilization and decline in revenue from the Complementary Business unit resulted in a 12 percent drop in Group revenue to $37.2 million.
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