Pacific Radiance: Results below expectations with 4Q14 net profit of US$5.1m (-69% y/y), as revenue dropped 12% to US$37.2m, mainly weighed by lower utilisation of diving support vessels, partially offset by newly delivered vessels.
Gross margin crashed from 36% to 9%, mainly attributable to the subsea business and offshore support services segment, on softer market conditions.
Bottom line was also weighed by FX loss (US$0.2m), partially offset by a lower provision for doubtful debts (US$3.6m) and finance expenses (-24%).
Management proposed a first and final DPS of 3¢ (FY13: 2¢).
We do not rule out earnings downgrades in the near term on its disastrous results.
At $0.725, Pacific Radiance is valued at 0.9x P/B.
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