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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."