Pacific Radiance wins $100M charter contract

Pacific Radiance Ltd., a Singapore-based provider of integrated offshore marine services in Asia and beyond, has bagged a contract worth up to US$100 million for its latest maintenance work vessel (MWV).

The vessel is also the first of the 14 newbuilds scheduled for delivery in the current financial year FY2014.

Under the terms of the contract, the MWV, which joined the Group’s diverse fleet in the first quarter of FY2014, will be chartered to an international oil major for up to seven years, including extensions. The Group expects the MWV, which will be deployed to provide maintenance services for a project in South East Asia, to contribute to its earnings from 2QFY14.

The MWV has accommodation for 208 men and is equipped with a 64 tonne crane. The Dynamic Positioning Class 2 enabled MWV is also able to work in deeper waters and enhances Pacific Radiance’s overall fleet capabilities.

Pang Yoke Min, the Executive Chairman of Pacific Radiance, said: “This latest win reinforces Pacific Radiance’s firm standing in the sector and underlines our strategy to add larger and more sophisticated vessels while keeping our fleet diverse and relevant to market trends.

“Furthermore, our strategic newbuild programme places the Group in a prime position to widen our footprint in Asia as well as make inroads into our target markets in Africa, Australia, South and Central America where E&P spending is expected to rise.”

Under the Group’s strategic newbuild programme, Pacific Radiance expects 13 more vessels ranging from Platform Supply Vessels and Anchor Handling Tug & Supply Vessels, to a ROV support vessel, to be delivered in FY2014. These diverse newbuilds which are more technologically advanced, will enhance the Group’s medium to deepwater capabilities to capture opportunities in the market as its clients move into deeper waters.

Last month, Pacific Radiance announced a 76% jump in Group net attributable profit to US$56.8 million in FY2013, on the back of revenue growth of 29%. This is the result of higher utilisation and firm charter rates of its fleet of offshore support vessels.

The Board has also proposed a final tax-exempt ordinary dividend of 2 Singapore cents per share for FY2013 which is expected to be paid on 23 May 2014 when approved by shareholders at the upcoming Annual General Meeting.

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Press Release, April 01, 2014