Cost of sales fell 28% to US$15.1 million from US$21 million a year ago.
Meanwhile, general and administrative expenses fell 30% to US$3.9 million from US$5.5 million in 1Q17, which the group credits to its continuing cost rationalisation exercise.
Executive chairman Pang Yoke Min says he believes the worst is likely behind Pacific Radiance in view of improving operating fundamentals of the global offshore support vessel (OSV) sector, although OSV charter rates are expected to continue reflecting tonnage oversupply in the near-term.
He attributes the latest quarter’s narrowed loss to cost-control measures that include right-sizing of fleet and crew, suspension of bonus payouts, wage freezes and wage reduction for staff.
“The group is now in full swing with its restructuring exercise and is actively engaging all its stakeholder groups for their support. Once the restructuring is completed, we will see significant deleveraging of the group’s balance sheet and injection of new equity. We believe that these steps we are taking will allow the group to sustain its operations under current market conditions and to position itself for the eventual recovery of the offshore marine sector,” says Pang.
Shares in Pacific Radiance last traded at 10.4 cents.
