DECEMBER 19, 2013 — Singapore headquartered Pacific Radiance Ltd. has exercised its options to add two further Ulstein PX 121 design platforms supply vessels to the two that it ordered in September from a Chinese shipyard. The latest pair are set to be delivered in fourth quarter 2015. This latest order brings the Group's newbuild program to 19 vessels in all.
Mr. James Pang, Managing Director (Commercial and Business Development) of Pacific Radiance, said: "Fresh from our successful initial public offering (IPO) in November 2013, we are keen to press home the advantage and accelerate plans to build up our presence in key markets. The latest vessel orders will enhance our ability to widen our foothold in the high-growth markets of Malaysia, Indonesia, Africa, Australia and Latin America."
Pacific Radiance says the two latest PSV newbuilds will be internally funded, using the net proceeds of Singapore $150.6 million raised in the November listing and internally generated cash.
"Our project management team will be working hand-in-hand with Ulstein's design engineers when the vessels are built in China," said Mr. Pang. "With the group's unique understanding of the newbuild process, we have been able to manage overall expenses well and keep the acquisition costs low for the entire fleet expansion program. This will feed through our bottom line via higher margins and better profitability."
Currently, Pacific Radiance owns and operates what it says is a "young and diverse" fleet of more than 130 offshore support vessels.
The group's associate company, PT Logindo Samudramakmur, also listed recently, debuting on the Indonesia Stock Exchange on 11 December 2013. The offshore vessel owner and operator, which plays a key role in the Group's plans to ramp up growth in Indonesia's cabotage-protected market, raised Rp356.7 billion, or approximately US$31.4 million (based on the prevailing exchange rate of US$1 : Rp 11,350) in gross proceeds through the IPO, most of which will be used to expand its locally flagged fleet.