POSH revenues up on offshore accommodation business growth

February 19, 2016

PACC Offshore Services (POSH), a Singapore-based provider of offshore support vessels, has posted 29% growth in revenues in 4Q 2015 when compared to 4Q 2014, primarily due to growth in the offshore accommodation business.

PACC Offshore Services’ revenues for 4Q 2015 amounted to $71.8 million, up 29% when compared to 4Q 2014 and revenues of $55.8 million.

The offshore accommodation division recorded an increase in revenues to $26.8 million, versus $6.8 million in the corresponding quarter in 2014.

According to the offshore vessels provider, this was primarily a result of chartering of the 750-pax POSH Xanadu semi-submersible accommodation vessel (SSAV) and the chartering of three 238-pax light construction vessels (LCVs) – POSH Endurance, POSH Enterprise and POSH Endeavour.

In the fourth quarter of 2015, POSH recorded a net loss attributable to shareholders of $149.7 million, compared to a net loss of $10 million in the previous corresponding quarter.

The results were affected by impairments of $127 million and $21.4 million on goodwill and fixed assets respectively in the quarter. Excluding impairments, write-offs and disposals, net loss was $2.7 million, compared to net loss of $8 million in 4Q 2014.

Offshore supply vessels segment revenues were marginally lower at $33.9 million versus $34.4 million in 4Q 2014.

Revenue for the transportation & installation division declined by 16% to $6 million compared to $7.1 million a year ago, mainly due to lower charter rates and vessel utilisation.

Pressure on charter rates continues

POSH said that, with crude oil prices staying at current low levels, the macro environment for the global offshore marine industry continues to be challenging. The Group expects continued pressure on charter rates and utilisation.

Captain Gerald Seow, Chief Executive Officer of POSH, said: “The market conditions for 2016 are expected to remain difficult, and we will continue to take proactive action to streamline operations while further sharpening our business strategy to capture new opportunities and markets, particularly in the Middle East.”

Offshore Energy Today Staff