Singapore-based offshore vessel operator Pacific Radiance is looking to diversify into offshore wind, according to its latest presentation related to restructuring plans the company has been negotiating with its stakeholders since September 2017.
According to the market opportunities listed in its business outlook presented to Pacific Radiance noteholders on 19 January, the company – primarily working in the offshore oil and gas sector – is “aiming at diversifying beyond oil price related services and into promising offshore wind and LNG sectors.”
Looking at the offshore wind market, the company stated it retained competitive advantage with key supplier relationships and expertise in ship management. Furthermore, Pacific Radiance targets expanding its customer base to include wind turbine manufacturers and offshore wind farm developers.
On 19 January, the company held a second informal meeting to update its noteholders on the restructuring process, as well to ask them to vote for a resolution at the next extraordinary general meeting (EGM), which would ensure the issuance of 3 shares for every S$1 held by the noteholders. This would see 300 million new shares worth almost S$36 million (based on S$0.119 per share) issued by the end of April 2018.
To recover the business and secure its long-term sustainability, Pacific Radiance has also decided to lay up 36 vessels, reduce its crew headcount by 35%, cut its senior management wages and even lay off some of its corporate management.
As one of its fundamental strengths, the company highlighted having its complementary shipyard facility in Singapore providing repair, maintenance, and modification services to both the Pacific Radiance fleet and third parties, and “a high grade young fleet built for the future.”
Offshore WIND Staff