Pacific Radiance (RXS) H1 2023 earnings summary

Executive summary

• 6M 2023 continuing revenue rose 7% YoY to US$16.3m, while gross profit fell 12% to US$5.2m; continuing profit for the period was US$3.5m, versus US$21.0m in 6M 2022.

• Prior-year results included substantial one-off restructuring-related gains; 6M 2023 operating cash flow was positive at US$1.6m and cash ended the period at US$26.9m.

Financial highlights

• 6M continuing revenue US$16.284m, up 7% YoY; gross profit US$5.190m, down 12%; profit before tax US$3.506m and net profit US$3.464m.

• 2Q continuing revenue US$8.065m, down 24% YoY; gross profit US$2.095m, down 56%; profit before tax US$0.349m and net profit US$0.660m.

• 6M 2022 other operating income included US$22.258m debt-forgiveness gain, alongside vessel-sale and financial-guarantee release gains; these restructuring-related items did not recur in 6M 2023.

• 6M 2023 basic and diluted EPS were 0.8 US cents, versus 3.8 US cents total in 6M 2022, including continuing and discontinued operations.

Outlook and guidance

• Offshore oil and gas activity continued improving in 2023; demand was described as supportive, with vessel supply constrained after years of tonnage removals and modest newbuilding.

• Offshore wind investment tied to energy transition and energy security is expected to support demand for vessels used in wind-farm construction and maintenance; opportunities will be pursued cautiously amid geopolitical and economic uncertainty.