Brokers' take

PACC Offshore Services Holdings | Hold Target price: S$0.335 May 9 close: S$0.32 OCBC Investment Research, May 9

PACC Offshore Services Holdings (POSH) reported a 42 per cent year-on-year fall in revenue to US$34.3 million and a net loss of US$18.4 million in Q1 FY17, versus net profit of US$4.5 million in Q1 FY16.

There were insignificant one-off items in the quarter. Most of the drop in revenue came from the offshore accommodation segment (-65 per cent year on year to US$10 million in Q1 FY17) as the semi submersible accommodation vessel (SSAV) POSH Xanadu completed its extended charter in March 2017 on reduced charter rate and two of the light construction vessels were not deployed in the quarter.