PACC Offshore files notice of losses for three years

Mainboard-listed PACC Offshore Services Holdings filed a notice of three consecutive years of losses yesterday, after financial results for the year to Dec 31, 2017 saw fresh losses even as turnover improved.

Under Singapore's listing rules, companies may be put on a watch list if they clock pre-tax losses for three straight years and have an average daily market capitalisation of less than $40 million over six months.

While PACC Offshore has been mired in the red, its six-month average daily market value still managed to clear the second hurdle.

The offshore marine services provider said it was worth an average of $657.88 million over six months, as of April 10.

The Singapore Exchange holds quarterly reviews to identify which share issuers should be put on the watch list, with the next review taking place on the first market session in June.

PACC Offshore's unaudited financial statements, out in February, showed a pre-tax loss of US$225.43 million (S$295 million) last year, narrower than a loss of US$370.31 million in 2016.

They came on a 5 per cent year-on-year rise in revenue to US$192.24 million. On April 4, DBS Group Research lowered its rating on the stock from "buy" to "hold", with the 12-month price target cut from 48 cents to 32 cents, after the company's second-largest shareholder, Malaysian Bulk Carriers, announced it would dispose of its entire 21.23 per cent stake.

A version of this article appeared in the print edition of The Straits Times on April 12, 2018, with the headline 'PACC Offshore files notice of losses for three years'. Subscribe