Posh swings into the red with Q3 net loss of US$12.9 million

Offshore marine services provider Pacc Offshore Services Holdings swung into the red in the third quarter amid a still-depressed market.
Offshore marine services provider Pacc Offshore Services Holdings swung into the red in the third quarter amid a still-depressed market.PHOTO: PACC

SINGAPORE - 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$17.9 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 on Friday.

For the nine months to Sept 30, Posh logged a net loss of US$26.1 million, compared with a net profit of US$18.7 million previously, while revenue slid 30 per cent to US$146.4 million.

Loss per share for the quarter came in at 0.71 US cents, a reversal from earnings per share of 0.69 US cents 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.

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 fourth quarter and full year ending Dec 31, it added.

Posh shares finished flat at 31.5 cents on Friday, before the results were announced.