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POSH posts wider Q1 net loss of US$12.7m

PACC Offshore Services Holdings (POSH) on Wednesday posted a net loss of US$12.7 million for the first quarter ended March 31, widening 77 per cent from a loss of US$7.2 million a year ago.

This came as revenue fell 12 per cent to US$61.8 million from US$70.6 million in Q1 2018. The group attributed the fall mainly to lower contributions from its offshore accommodation (OA) segment, as one of its two semi-submersible accommodation vessels was undeployed in the quarter.

The decrease in OA revenue was partially offset by higher revenue in its offshore supply vessel, transportation and installation, and harbour services and emergency response segments.

Loss per share widened to 0.701 US cent from 0.397 cent a year ago.

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The group said that it expects sustained improvement for utilisation and charter rates for its OA monohull segment for the rest of FY2019. It also expects utilisation and charter rates to improve slightly for its offshore supply vessel segment as offshore projects that were sanctioned in previous years materialise.

"In the longer term, developments such as shale technology and the global transition towards greener energy sources constitute a structural shift in the oil and gas industry," POSH said.

"While oil and gas are expected to remain as the dominant energy source, the share of energy contribution by renewables is projected to see a substantive increase globally. This transition could present both current and future growth opportunities for POSH." 

POSH shares closed at S$0.178 on Wednesday, down 0.6 Singapore cent or 3.26 per cent.