PACC Offshore Services, a Singapore-based provider of offshore support vessels, has issued a profit warning for the fourth quarter and full year 2015. The company, also known as POSH, has said that it expects to record a loss for the year.
In a statement on Tuesday, POSH said low crude oil prices have had an adverse impact on the global offshore marine industry.
The company, which owns a fleet of 120 offshore support vessels, further said that as a result of the challenging market condition, and the uncertainty when the offshore marine industry will recover, the Group carried out a preliminary assessment of the goodwill arising from the acquisition of PSA Marine’s offshore business in 2007.
“Pursuant to the said review, the group is of the view that an impairment for part of the goodwill value has to be made, while the value of the goodwill to be impaired is yet to be determined, it is expected that this will have a significant adverse impact on the financial results of the Group, for 4Q2015 and FY2015, such that it will likely be a loss for the year,” POSH said, adding that there may also be impairment in the company’s investment in certain subsidiaries.
POSH last month reported a third quarter revenue increase of 20% at $80.4 million, citing a “strong growth” in the Offshore Accommodation (“OA”) business division. The group’s net profit fell to $12.6 million, down from $14.6 million in the previous year. POSH said profit was down due to a smaller, $800.000 one-off gain from the sale of vessels during the period, compared to a $11.6 million gain in the same period of 2014.
Offshore Energy Today Staff