POSH secures charters worth US$85m

PACC Offshore Services Holdings (POSH) has secured long-term charters under two separate contracts for five vessels valued at about US$85 million.

The first contract is for the supply of four new utility vessels to a Saudi Arabia-based national oil and gas major, primarily to support its offshore maintenance work in the Persian Gulf. The charters will commence progressively from the first quarter of 2017, with the first three vessels to be delivered over the first half of 2017, and the fourth vessel to be delivered in June the same year.

The second contract is for a firm five-year charter from Q1 2016 on an anchor handling, towing and supply vessel for a Qatar client.

The contracts were announced after POSH unveiled in January a joint venture, POSH Saudi Company, with Saudi Arabia's Hmood Al-Khalaf Group.

POSH's chief executive, Gerald Seow, said the new contract wins in the Middle East - which include additional charters with the Saudi Arabia national oil and gas major "validates our strategy to diversify into key growth markets and business segments amid ongoing challenges in the (offshore marine) industry".

POSH slipped into the red with a net loss of US$149.7 million in Q4 2015 after goodwill impairment of US$127 million and fixed asset impairment of US$21.4 million.