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PACC Offshore files notice of 3 years' losses; 6-month market cap still above SGX watch-list threshold
MAINBOARD-listed PACC Offshore Services Holdings filed a notice of three consecutive years' losses on Wednesday morning, after financial results for the year to Dec 31, 2017 saw fresh losses even as turnover improved.
Under Singapore's listing rules, companies go on a watch list if they clock pre-tax losses for three straight years and have an average daily market capitalisation of less than S$40 million over six months.
While PACC Offshore has been mired in the red, its six-month average daily market value still managed to clear the second hurdle.
The offshore marine services provider said that it was worth an average of S$657.88 million over six months, as at April 10, the previous trading day.
The Singapore Exchange holds quarterly reviews to identify which share issuers should be put on the watch list, with the next review taking place on the first market session in June.
PACC Offshore's unaudited financial statements, out in February, showed a pre-tax loss of US$225.43 million for the year to Dec 31, 2017, narrower than a loss of US$370.31 million the year before. The losses came on a 5 per cent year-on-year rise in revenue, to US$192.24 million.
DBS Group Research on April 4 lowered its rating on the stock from "buy" to "hold", with the 12-month price target cut from S$0.48 to S$0.32.
The downgrade came after the company's second-largest shareholder, Malaysian Bulk Carriers, announced it would dispose of its entire 21.23 per cent stake.
PACC Offshore closed flat on Tuesday at S$0.32.