Offshore marine services provider Pacc Offshore Services Holdings (Posh) swung into the red in the third quarter amid a still-depressed market.
The group booked a net loss of US$12.9 million (S$17.8 million) for the three months to Sept 30, a far cry from a net profit of US$12.6 million in the same period a year earlier.
Revenue slumped 48 per cent to US$41.6 million mainly due to lower contribution from its major business divisions on lower utilisation and charter rates, said Posh in a statement yesterday.
Turnover in its offshore supply vessels business, for instance, sank 56 per cent to US$16.9 million on lower charter rates and utilisation, resulting in a gross loss of US$4.4 million, compared with a gross profit of US$5.3 million previously.
Loss per share came in at 0.71 US cent, a reversal from earnings per share of 0.69 US cent previously. Net asset value per share was 56.64 US cents as at Sept 30, down from 58.53 US cents as at Dec 31 last year.
Posh said it expects the carrying value of the goodwill arising from the acquisition of PSA Marine's offshore business in 2007 and the carrying value of the group's fleet of vessels to be impaired.
AT A GLANCE
NET LOSS: US$12.9 million (N.A.)
REVENUE: US$41.6 million (-48%)
The impairment amount is to be determined by the end of the year, and will likely have a material adverse impact on the group's financial results for the fourth quarter and full year ending Dec 31, it added.
"We expect that the business environment for the remainder of 2016 and 2017 will remain challenging and could potentially deteriorate further," said Posh's CEO Gerald Seow. "However, we maintained a sound balance sheet and remain focused on extracting cost efficiencies and driving utilisation rates.
"We believe in the long-term fundamentals for our industry, especially for operators with a modern fleet of vessels like ours. Together with our track record of operational excellence, we will be well positioned when the market recovers eventually."
Posh shares finished flat at 31.5 cents yesterday, before the results were announced.