Pacific Radiance - Annual Report 2014 - page 12

Financial & Operations Review
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sustainable growth. Over the past year, we have continued
to roll out key initiatives intended to improve operational
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competitive edge.
During this time, the oil and gas (O&G) sector has been hit
by a downswing in oil prices, particularly in the second half
of 2014. Subsequently, projects were deferred as weak oil
prices reduced their viability and upstream players moved
to rein in spending.
Supported by a robust business model that caters to
clients’ needs across the entire O&G project lifecycle and
that focuses our resources in high-growth and/or cabotage-
protected markets, we have been able to hold our own
despite these challenges.
OVERALL PERFORMANCE IN FY2014
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strong performance was driven by demand for our newly
delivered offshore support vessels (OSVs), as well as the
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interest costs.
Even though the industry experienced considerable volatility,
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secured a 2% rise in revenue to US$172.2 million for the full
year. We locked in more than US$200 million in long-term
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oil prices that led industry players to reassess budgets and
drilling projects. The contracts included one for a vessel due
to be delivered only in 2016/17.
OPERATIONS BY SEGMENT
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This division is the major contributor to overall earnings,
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base and landed fresh contracts.
The Group took delivery of a range of new OSVs, mainly
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(PSVs), anchor handling tugs and supply vessels (AHTS) and
maintenance work vessels (MWVs). Some of these newbuilds
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Thanks to these new charters, the division was able to
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the sale of vessels as the Group continues to rejuvenate its
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The Group’s share of results from joint venture companies
declined marginally from US$12.6 million to US$12.1 million
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at its Malaysian joint venture, Alam Radiance (L). Another
reason was a lower contribution from its listed Indonesian
joint venture partner, PT Logindo Samudramakmur Tbk,
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a year ago after PT Logindo’s initial public offering.
Subsea Business
For the subsea services unit, revenue came in lower at
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vessels (DSVs) were drydocked for enhancement works
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The division took delivery of a remotely operated vehicle
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