Company Briefs: Pacc Offshore Services Holdings

Pacc Offshore Services Holdings

Offshore marine services provider Pacc Offshore Services Holdings (Posh) has won a contract through its subsidiary Posh Semco to support Shell's Prelude floating liquefied natural gas (FLNG) facility.

The contract - for an undisclosed sum - was awarded by Technip Oceania, Posh announced yesterday. Under the agreement, Posh will deploy its 750-person semi-submersible accommodation vessel, the Posh Arcadia, to provide accommodation support for the hook-up and commissioning phase of the Shell Prelude FLNG project in the Browse Basin, off the north-west coast of Western Australia.

This is Posh's second contract for the Prelude FLNG project. In January, its Posh Terasea joint venture was appointed to provide towage and positioning services for the facility.

The Posh Arcadia is among the world's largest semi-submersible accommodation vessels, designed to operate in deep water and harsh environments.

The contract award is not expected to have a material impact on the net tangible assets or earnings per share of the group for the financial year ending Dec 31, said Posh.

Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Reit)

The manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Reit) yesterday said that prior to S&P Global Ratings downgrading and then withdrawing its latest credit rating for the Reit on Thursday, it had already requested that all ratings be removed.

The move was to avoid unnecessary costs following the recent amendment to the Code on Collective Investment Schemes, which now allows Reits to adopt a single-tier leverage limit of 45 per cent without the requirement for a credit rating.

The manager said it had told S&P on June 14 it no longer required the agency to provide further ratings on the Reit, and that it was informed of S&P's consent to withdraw its rating only when the firm published its report on the Reit on Thursday.

S&P downgraded the Reit's rating from BBB- to BB+, or from investment grade to junk, with a stable outlook, as the Reit's balance sheet has "weakened on prolonged difficult industry conditions". It also said it withdrew the rating at the company's request.

The manager, in its announcement yesterday, also said that it intends to take the necessary creditor-friendly measures to preserve its balance sheet strength.

A version of this article appeared in the print edition of The Straits Times on June 25, 2016, with the headline 'Company Briefs'. Print Edition | Subscribe