POSH sinks into US$17.5M net loss

Three of four businesses suffered large revenue drops.

Crashing waves were up against PACC Offshore Services Holdings Ltd. (POSH), which reported a whopping US$17.5 million net loss attributable to shareholders (NLAT) in 2Q16, in stark contrast with its US$6.1 million net profit in the same period last year.

Media release from the offshore marine services provider blamed persisting industry-wide challenging conditions and poor performance from major business segments for the overall 35% plunge in revenue YoY to US$46.1 million.

Of its four businesses, only Harbour Services & Emergency Response reported a 16% increase in revenue on improved utilisation from new charters and a higher number of spot jobs for its harbour tugs in 2Q16. POSH’s Offshore Supply Vessels revenue dropped by 38% to US$19.7 million; Offshore Accommodation revenue decreased by 37% to US$16.6 million; and Transportation & Installation revenue decreased by 52% to US$3.9 million. All three businesses suffered lower charter rates and utilisation levels, among other upheavals.

“Our financial performance this past quarter is a reflection of the continued uncertainty surrounding our industry. Management will focus on achieving positive net operating cash generation through cost reduction and improving vessels utilisation. We are encouraged by our recent contract wins including for POSH Arcadia and eight of our offshore supply vessels.” said Captain Gerald Seow, Chief Executive Officer of POSH.