Pacific Radiance has exercised an option to build another two platform supply vessels (PSVs) with an un-named China-based shipyard at an undisclosed price.

The two additional units are part of an option with the same shipyard that the group used when it ordered the first two Ulstein PX121 design PSVs in September this year.

BT understands that the shipyard is likely to be China's Shanghai Waigaoqiao Shipbuilding (SWS), which had in June this year announced that it secured a contract to build two Ulstein PX121 PSVs with two options from an un-named Singapore customer.

All four vessels are due for delivery by 4Q 2015.

Shanghai Waigaoqiao Shipbuilding is part of the giant, state-owned China State Shipbuilding Corporation consortium which plans to develop SWS as a leading offshore shipyard to tap into the growing offshore oil and gas equipment and vessels market.

The Ulstein PX121 PSVs are designed to meet the requirements of Det Norske Veritas, with each PSV having a load capacity of 4,000 tonnes and a top speed of 14.5 knots.

They are considered medium sized PSVs being about 83.4 metres in length and 18 metres in breadth, and can accommodate 30 crew.

As an indication of the contract value, in January this year, Cosco Guangdong announced it had secured a contract to build two Ulstein PX121 PSVs for Vroon Offshore Services BV for US$54 million in total.

Pacific Radiance's latest orders come on top of 17 new vessels it already has on order in a US$320.8 million capex programme, bringing the group's current newbuild programme to 19 vessels in total.

In an earlier interview with BT, group managing director (commercial and business development) James Pang had highlighted that the group is looking at expanding its fleet by five or six vessels each year to cater to demands from its clients.

"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", he said.

The group expects to fund the investments internally, and from net proceeds of $150.6 million raised in its November public listing.

"Our project management team will be working hand-in-hand with Ulstein's design engineers when the vessels are built in China. With the group's unique understanding of the newbuild process, we have been able to manage overall expenses well and keep acquisitions costs low for the entire fleet expansion programme," Mr Pang added.

Mr Pang expects this to benefit the group's bottomline and profitability.

Pacific Radiance has an existing fleet of more than 130 offshore support vessels.

After its November listing, Pacific Radiance market capitalisation now stands at $617 million.

The stock closed at 85 cents yesterday, down from its IPO price of 90 cents.