Pacific Radiance - Annual Report 2014 - page 9

As the new year
unfolds, we will be
ramping up initiatives
WR SURPRWH VWD᯲
welfare, training and
development across
the board, so we
can grow together,
maximising potential
and performance.
Offshore support services remained
our key revenue contributor, bringing
ˆ˜ 1-f£Ón°£ “ˆˆœ˜ ̜ >ÌÌ>ˆ˜ > £Ç°£¯
rise with stable utilisation and
contributions from new vessels. At
the subsea arm, revenue came down
̜ 1-fÎΰ{ “ˆˆœ˜] vÀœ“ 9Óä£Î½Ã
US$45.2 million, because our two
diving support vessels (DSVs) were
drydocked for enhancement works
during the year and also experienced
lower utilisation.
The prudent management of our
working capital enabled us to
“œÀi Ì >˜ `œÕLi Ì i ˜iÌ V>à yœÜ
generated from operations to US$62.2
million and the Group remained in a
ÃÌÀœ˜} w˜>˜Vˆ> «œÃˆÌˆœ˜° - >Ài œ`iÀý
v՘`à }ÀiÜ Ìœ 1-f{Ón°ä “ˆˆœ˜ >˜`
net gearing improved a notch down to
ä°x ̈“ià >à >Ì Î£ iVi“LiÀ Óä£{°
œÀiœÛiÀ] *>VˆwV ,>`ˆ>˜Vi iÃÌ>LˆÃ i`
a S$1 billion multi-currency debt
issuance programme in August 2014
that will help support ongoing growth
initiatives. To date, we have issued
-f£ää “ˆˆœ˜ ܜÀÌ œv {°Î¯ «iÀ >˜˜Õ“
wÝi`‡À>Ìi ˜œÌià `Õi ƂÕ}ÕÃÌ Óä£n°
In line with the year’s performance,
the Board is recommending an
ordinary tax-exempt dividend of
ΰä -Z «iÀ à >Ài vœÀ 9Óä£{] > ÃÌi« Õ«
vÀœ“ 9Óä£Î½Ã Ó°ä -Z° / ˆÃ ˆÃ ÃÕLiVÌ
to shareholder approval at the Annual
i˜iÀ> iï˜} ̜ Li i` œ˜ Ón
April 2015. If approved, the total
«>ޜÕÌ œv -fÓ£°n “ˆˆœ˜ ܜՏ` Li
made on 20 May 2015.
DELIVERING STEADY GROWTH
While the recent weak oil price climate
may impact our performance in the
short term, we are committed to build
a long term sustainable business
where our proven business model
and our people will enable the Group
to deliver steady growth over the
medium to long term.
We have always maintained an
ivwVˆi˜Ì VœÃÌ ÃÌÀÕVÌÕÀi Ü ˆV >Ã
seen us through many cycles in the oil
and gas (O&G) sector. First, we have
V>ÀivՏÞ Ì>ˆœÀi` œÕÀ yiiÌ Vœ“«œÃˆÌˆœ˜
so that our vessels readily meet market
needs across the O&G project life
cycle, thus achieving a more stable
and sustainable income stream within
this cyclical sector. Next, our focus on
widening and deepening our reach
in high-growth and/or cabotage-
protected markets will help drive
demand for our vessels, as the need
̜ w `œ“iÃ̈V i˜iÀ}Þ ÀiµÕˆÀi“i˜Ìà ˆÃ
expected to shore up exploration and
production spending in these areas.
Just as critical is our management
team’s considerable expertise in
building vessels and the processes
involved, which has allowed us to keep
costs down when working with third-
party shipyards to build and acquire
vessels. And when we complete
our ship repair yard as expected by
early 2016, we will be able to further
strengthen our supply chain by
reducing downtime for dry-docking
and repairs, and improving response
times while increasing vessel reliability.
BUILDING A COMPANY
WITH HEART
Even while our energies were focused
on meeting our agenda for growth,
we did not lose sight of the people
who are at the very heart of our
success. Apart from streamlining
processes to improve productivity,
we took steps to strengthen our
corporate culture and nurture our
team. As the new year unfolds, we
will be ramping up initiatives to
promote staff welfare, training and
development across the board, so
we can grow together, maximising
potential and performance.
PROSPECTS AND OUTLOOK
Despite the current weakness in oil
prices, we remain cautiously optimistic
about the longer term prospects
for the industry. Global population
}ÀœÜÌ >˜` ÀˆÃˆ˜} >vyÕi˜Vi ˆ˜
emerging economies will continue to
boost energy consumption, which will
in turn bolster demand for oil. Global
demand for hydrocarbon based
fuels remains robust despite current
developments. Furthermore, ageing
offshore infrastructure around the
world will sustain the need for subsea
inspection, repair and maintenance
(IRM) services – a segment where we
are steadily expanding our presence.
Our tried and tested strategies have
served us well, enabling us to win over
clients with cost-effective solutions
that still offer the versatility and variety
they need, while paving the way for us
̜ ÃiVÕÀi > wÀÃ̇“œÛiÀ >`Û>˜Ì>}i ˆ˜
key markets. We believe this proven
and scalable business model gives
*>VˆwV ,>`ˆ>˜Vi Ì i Vœ“«ï̈Ûi
edge required to ride out the current
downturn in oil prices and successfully
seek out fresh market opportunities
while staying responsive to changes in
the business environment.
ACKNOWLEDGMENTS
AND APPRECIATION
Speaking for the Board, I would like
our staff and management team
to know how much we appreciate
their staunch dedication to the
œ“«>˜Þ >˜` Ì i “>˜Þ Ã>VÀˆwViÃ
they have made. Our recent win as
Ì i - ˆ«œÜ˜iÀ œv Ì i 9i>À >Ì Ì i
Annual Offshore Support Journal
Conference held in London in
February 2015, would not have been
possible without their concerted
efforts and commitment. This award
was presented in recognition of the
Group’s exemplary record in the
management of its business and
success in expanding into new markets
over the past year.
To our shareholders, clients and
business partners, we thank you for
your long-standing support and faith
in the Group. We hope to share the
œÕÀ˜iÞ ÜˆÌ ÞœÕ >à *>VˆwV ,>`ˆ>˜Vi
continues to make its mark.
Delivering Steady Growth 07