Posh reports wider fourth-quarter losses on impairment and goodwill charges

SINGAPORE - Offshore marine services provider PACC Offshore Services Holdings (Posh) widened its losses during the fourth quarter as it took impairment and goodwill charges amounting to US$148.4 million.

The group on Friday reported a net loss of US$149.7 million for the three months to Dec 31, over the net loss of US$9.6 million in the same period a year ago.

Excluding impairments, write-offs and disposals, net loss was US$2.7 million, less thn the net loss of US$8 million previously.

Revenue expanded 29 per cent to US$71.8 million, thanks to a 297 per cent surge in contribution from the offshore accommodation segment.

For the full year, Posh logged a net loss of US$131 million, well down from the net profit of US$53.2 million previously, while revenue rose 20 per cent to US$280.8 million.

Losses per share for the quarter came up to 8.25 US cents, more than the 0.55 US cents previously. Net asset value per share dropped to 58.53 US cents as at Dec 31 from the 66.69 US cents as at the same time a year before.

The group has proposed a final dividend of 0.5 cents per share, just one-third of the 1.5 cents previously.

Posh said in a statement that it expects to see "continued pressure on charter rates and utilisation", with crude oil prices staying at current low levels.

Chief executive Gerald Seow said: "The market conditions for 2016 are expected to remain difficult, and we will continue to take proactive action to streamline operations while further sharpening our business strategy to capture new opportunities and markets, particularly in the Middle East."

The group in January announced it has entered into a joint venture with Saudi Arabia's Hmood Al-Khalaf Group as part of its plans to expand its presence in the Middle East. This is in line with its strategy to further penetrate the Persian Gulf, which has been identified as a key growth market amid the ongoing global volatility in the oil and gas sector.