PACC Offshore Q2 net loss deepens to US$8.6m, embarks on comprehensive review of business

The group said it is undertaking a comprehensive review of its business, including divesting non-performing assets and investments.
The group said it is undertaking a comprehensive review of its business, including divesting non-performing assets and investments.PHOTO: PACC OFFSHORE SERVICES HOLDINGS

SINGAPORE - PACC Offshore Services Holdings (POSH) has sunk further into the red, with its second-quarter net loss widening by 49 per cent to US$8.6 million from a net loss of US$5.8 million in the year-ago period.

Loss per share was 0.48 US cent for the three months ended June 30, compared to a loss per share of 0.32 US cent a year ago, the mainboard-listed operator of offshore support vessels (OSVs) said early on Wednesday morning (Aug 7). No dividend was declared for the quarter.

Revenue tumbled 11 per cent year on year to US$74 million for the quarter, down from US$83.1 million, despite higher contributions from the OSV and the transportation and installation segments.

This was because revenue from the offshore accommodation segment shrank by 43 per cent to US$25.8 million, largely due to POSH Arcadia - one of the group's two semi-submersible accommodation vessels - having only commenced its charter in June 2019.

Contributions also fell from the harbour services and emergency response segment, which recorded an 8 per cent decrease in revenue to US$6.6 million for the quarter.

Oversupply of vessels continued to be a drag on charter rates although there were signs of increased activities in select segments, POSH said.

For the first half-year, the group recorded a net loss of US$21.4 million, 64 per cent bigger than the net loss of US$13 million in the year-ago period. Revenue fell 12 per cent to US$135.8 million from US$153.7 million a year ago. Loss per share stood at 1.18 US cents from 0.72 US cent previously.

The group added that it is undertaking a comprehensive review of its business, including divesting non-performing assets and investments.

Its chief executive officer Lee Keng Lin said: "Headline performance was impacted by ongoing market challenges, but we are encouraged by continued growth in our new businesses, and improved performance from the offshore accommodation monohull."

Shares of POSH ended Tuesday at $0.15, up 0.3 cent or 2.04 per cent, before the results were released.