PACC Offshore Services reports Q3 loss of US$13m

PACC Offshore Services Holdings on Friday posted a third-quarter net loss of US$12.94 million from a profit of US$12.58 million a year ago as market conditions in the offshore marine sector continued to deteriorate.

Revenue plunged 48 per cent to US$41.63 million, largely owing to lower utilisation and charter rates across the major business segments.

Given the depressed market conditions, the company expects the carrying value of the goodwill arising from the acquisition of PSA Marine's offshore business in 2007 and that of its fleet of vessels to be impaired.

The impairment amount will be determined by year-end and will have an adverse impact on the group's results for the fourth quarter and financial year ending December 2016.

Loss per share for the three months to Sept 30, 2016, stood at 0.71 US cents versus an earnings per share of 0.69 US cents a year ago.

For the nine-month period, net loss came in at US$26 million from a US$18.7 million profit on the back of a 30 per cent drop in revenue to US$146.4 million.

The counter finished unchanged at 31.5 Singapore cents on Friday.