POSH profit trimmed by weak Mexico operations

The Asian operator of OSVs posted a first half profit of $48.55m, up 1% from $48.21m in the corresponding period of last year. Group revenue fell 5% year-on-year to $111.2m due mainly to a transfer of deepwater transport and installation operations into a joint venture.

POSH’s share of profit from the joint ventures sank to a loss of $2.9m in the first half due mainly to negative contribution of $7.5m from its Mexican joint ventures, compared to a gain of $5.9m in the first half of 2013.

In Mexico, the group’s joint venture vessels have stopped work due to non-payment by Oceanografia. But POSH said it is continuing to work on securing employment of the joint venture vessels and it has recently secured a two-and-a-half year charter for one of the vessels to national oil firm Pemex.

The drop in joint venture results, lower operating income and higher expenses also hit the group’s results in the second quarter, leading to a quarterly profit of $11.87m, down 57% compared to $27.41m a year ago.

Gerald Seow, ceo of POSH, said the company will continue to focus on maximising the utilisation of its OSVs even as it optimise their mix and number within the fleet.

“The outlook for our industry remains bright with overall growth in offshore capex expected to be driven by key markets, namely Africa, Middle East & the Caspian region and Australasia,” Seow commented.

As at 30 June 2014, POSH’s vessel construction-in-progress amounted to $443m representing 19 vessels on order to be delivered over the next two years. In addition, the group is planning to commit additional capex amounting to $380m in newbuilds over the next six months.

Meanwhile, plans are underway by POSH to refloat and repair its 50% owned semi-submersible barge which sank while undergoing submerging trials in Batam, Indonesia on 18 July this year.

The accident claimed the lives of three while six others were rescued.

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