PACC Offshore posts 49% fall in Q2 net profit

Posh has reported weaker second quarter earnings on Wednesday as vessel rates continued to come under pressure from the oil industry slump.
Posh has reported weaker second quarter earnings on Wednesday as vessel rates continued to come under pressure from the oil industry slump. PHOTO: PACC

SINGAPORE - Offshore support vessel provider PACC Offshore Services Holdings (Posh) reported weaker second quarter earnings on Wednesday as vessel rates continued to come under pressure from the oil industry slump.

Net profit for the three months to June 30 slumped 49 per cent to US$6.1 million (S$8.45 million) from US$11.87 milion in the year-ago period. This was mainly owing to a 71 per cent plunge in other operating income to US$1.9 million from US$6.6 million a year ago.

Posh said the group had a healthier share of profits from joint ventures of US$3.3 million, compared with US$300,000 a year ago, on higher contribution from its Posh Terasea joint venture.

Revenue for the quarter rose 22 per cent to US$71 million, mainly driven by the offshore accommodation segment, which had full maiden contributions from a semi-submersible accommodation vessel and a light construction vessel.

Net profit for the six months to June 30 plunged 87 per cent to US$6.1 million, while revenue rose 16 per cent to US$128.6 million.

The firm said: "Oil prices are expected to remain volatile in the coming quarters despite early signs of stability in the second quarter. In the wake of falling revenues, oil companies initiated cost saving programs, deferring exploration and field-development activities.

"It is expected that there will be limited exploration and greenfield development."

It added that with high availability of vessels, it expects pressure on rates to continue.

Quarterly earnings per share was 34 US cents, down from 68 US cents a year ago, while net asset value per share was 65.92 US cents as at June 30, down from 66.69 US cents as at Dec 31.

rachaelb@sph.com.sg