Pacific Radiance (PACRA) has reported a significant turnaround in its financial performance for the first half of 2025, with a 28% year-on-year increase in revenue, reaching $24 million. This growth aligns with expectations, largely due to the reactivation of its entire fleet, including an accommodation work barge, and a favourable shift towards ship management services.
The company’s gross margin improved to 49% in 1H25, up from 32% in the same period last year, attributed to the reactivation of vessels and a strategic revenue mix. PACRA’s core profit after tax and minority interests (PATMI) exceeded forecasts, reaching $6 million, surpassing the anticipated $5 million for the full year.
PACRA’s ship leasing and chartering revenues rose by 31% year-on-year to $9 million, driven by the reactivated vessels. The company currently has four vessels operating in the Middle East under contracts ranging from one to three years, with resilient demand expected to boost charter rates.
In Taiwan, PACRA has expanded its fleet of crew transfer vessels (CTVs) servicing offshore wind farms, delivering one of two new CTVs to its joint venture. The second CTV is pending sale, which will increase the fleet to six units.
CGS International has reiterated an “Add” rating for PACRA, raising the target price to S$0.09, based on a 7x FY26 forecast price-to-earnings ratio. The company’s sustainable profit turnaround and potential new vessel additions are seen as key catalysts for future growth. However, risks remain, including potential weak demand for ship repairs and lower-than-expected fleet utilisation.
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