POSH posts US$17.5m loss for Q2
THE deterioration of market conditions in the beleaguered offshore marine sector has pushed PACC Offshore Services Holdings (POSH) into the red for the second quarter.
The offshore marine services provider posted a net loss of US$17.5 million for the three months to June 30, a reversal from the net profit of US$6.1 million it reported in the same period a year ago.
Revenue dropped to US$46.1 million, down 35 per cent from US$71 million previously, POSH said in a Singapore Exchange filing on Tuesday.
The decline in topline earnings was due to falls in its offshore supply vessel (OSV), offshore accommodation (OA) and transportation and installation (T&I) businesses, POSH said.
Receipts from the OSV segment dropped 38 per cent to US$19.7 million, due mainly to lower charter rates from discounts on rates previously contracted, reduced rates of new contracts and lower utilisation levels from project delays, POSH said.
Income from its OA and T&I segments declined to S$16.6 million and S$3.9 million respectively as well due mainly to lower utilisation, the firm said.
The drop in revenue was partially offset by a 16 per cent rise in income from its harbour services and emergency services business, which came in at S$6.0 million, up from S$5.1 million previously.
Commenting on the firm's performance, POSH chief executive Gerald Seow said: "Our financial performance this past quarter is a reflection of the continued uncertainty surrounding our industry.
"(We) will focus on achieving positive net operating cash generation through cost reduction and improving vessels utilisation."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly
HCA beats first-quarter profit estimates on higher patient admissions
F&B operator YKGI to exclusively operate Chicha San Chen in Macau for next eight years