Pacific Radiance (RXS) H2 2023 earnings summary

Executive summary

• FY2023 marked a transition from restructuring toward ship management-led operations; continuing-operations revenue rose 5% YoY to US$31.4m, while adjusted EBITDA was positive at US$5.0m.

• Reported net profit was US$14.5m, including material receivables and asset write-backs; FY2022 profit was dominated by debt-restructuring gains, limiting year-on-year comparability.

• A rights issue completed in February 2024 strengthened the balance sheet and supports planned growth in offshore oil and gas and offshore wind.

Financial highlights

• Continuing-operations revenue was US$31.405m, up 5% from US$29.883m in FY2022; gross profit fell ~9% to US$12.540m.

• General and administrative expenses declined 6% to US$12.444m; adjusted EBITDA, excluding non-recurring receivables and PPE write-backs, was US$5.0m.

• Profit before tax was US$15.466m; net profit was US$14.516m and basic EPS was 3.2 US cents, versus FY2022 net profit of US$342.903m and EPS of 167.1 US cents, which included restructuring gains.

• Operating cash flow was US$8.921m versus US$1.889m in FY2022; cash and bank balances were US$26.676m, including US$2.021m restricted cash.

Outlook and guidance

• FY2024 began with positive tailwinds in key markets and a stronger balance sheet; strategy prioritises expanding ship management and pursuing growth opportunities aligned with the rights issue.

• OSV demand from oil and gas and offshore wind is expected to strengthen, while vessel supply is expected to stay constrained by limited newbuilds and reactivations.

• Asia offshore wind is expected to grow over the next five years, with rising demand for specialised installation, maintenance and survey vessels.