PACC Offshore posts Q2 $23m loss

PACC Offshore Services Holdings (Posh) is the latest in the embattled offshore sector to hit rocky waters.

The firm posted a second-quarter net loss of US$17.5 million (S$23.5 million), reversing from a net profit of US$6.1 million a year earlier.

Revenue in the three months ended June 30 slumped 35 per cent to US$46.1 million year on year, as exploration and production firms around the world again cut back on capital spending.

Revenue from offshore supply vessels slumped 38 per cent to US$19.7 million on lower charter rates and a mere 58 per cent utilisation rate after project delays.

Revenue from offshore accommodation slipped 37 per cent, while revenue from transportation and installation was down a sharp 52 per cent.

Posh also recorded a US$3.1 million loss from its share of joint ventures' results, compared with a profit of US$3.3 million in the second quarter last year. The loss was due to an allowance for the doubtful debt of Posh Terasea.

The one bright spot was the harbour services and emergency response business, which posted a 16 per cent increase in revenue on improved utilisation from new charters and a higher number of spot jobs for its harbour tugs.

  • AT A GLANCE

  • REVENUE: US$46.1 million (-35%)

  • NET LOSS: US$17.5 million (not meaningful)

Posh said it has no exposure to Swiber Holdings, which is facing major financial difficulties.

Posh generated net operating cash flow of US$30.6 million in the six months ended June 30. Chief executive Gerald Seow noted that firms with weak financials were being disqualified by oil majors in some recent tenders where Posh participated.

Asked during an earnings call last night if Posh could be a privatisation candidate, as a recent CIMB report suggested, Mr Seow said: "Posh is an independently managed company and we remain committed to being listed on the Singapore Exchange. Any further questions can be directed to our principal shareholder."

Kuok (Singapore) holds about 60 per cent of Posh shares, and chairman Kuok Khoon Ean is also chairman of Posh.

Second-quarter loss per share stood at 0.97 US cent, against earnings per share of 0.34 US cent a year earlier.

Net asset value per share was 57.37 US cents as at June 30, down from 58.53 US cents as at Dec 31. The results were posted after trading hours. The counter closed a cent lower at 34 cents.

A version of this article appeared in the print edition of The Straits Times on August 03, 2016, with the headline 'PACC Offshore posts Q2 $23m loss'. Print Edition | Subscribe