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POSH hit by 2015 loss on impairment charges

POSH hit by 2015 loss on impairment charges
Offshore marine services provider PACC Offshore Services Holdings (POSH) has plunged into the red in 2015 due mainly to a huge impairment charge of $144.58m.

Net loss for the financial year ended 31 December 2015 was registered at $130.96m as against the profit of $53.24m in 2014.

The loss was blamed on impairments, write-offs and gain from disposal amounting to $144.58m. Excluding the impairments in 2015 and gains from vessels disposal in 2014, POSH would have recorded a net operating profit of $13.62m, up 40% from $9.73m in 2014.

Revenue for last year was recorded at $280.82m, an increase of 20% from $234.04m in 2014 due primarily to higher contribution from the offshore accommodation business.

“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,” said Gerald Seow, ceo of POSH.

The group expects continued pressure on charter rates and utilisation, but nonetheless sees growth opportunities in new markets with its recent expansion in the Middle East via a joint venture in Saudi Arabia being a prime example.