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POSH posts 53% fall in full year profit

POSH posts 53% fall in full year profit
PACC Offshore Services Holdings (POSH) has reported a drop in full year profit while revenue remained steady.

The OSV owner booked a profit of $53.24m in the year ended 31 December 2014, a decrease of 27% compared to $73.37m in the previous financial year. The earnings were slashed as gross profit fell due to lower utilisation and higher operating costs.

Revenue remained stable at $234.04m last year compared to $237.26m in the previous year.

Singapore-listed POSH said the decline in oil prices since the middle of 2014 has resulted in reduced capital expenditure by many oil companies. The impact will be lower charter rates for OSVs.

“With oil price volatility and uncertainties in the global economy, the group will focus on cost efficiency and maximise utilisation of vessels,” said Gerald Seow, ceo of POSH. In addition, the group has deferred certain planned newbuildings.

Seow added that the Mexican offshore oil and gas sector remains uncertain due to various local factors and the declining oil prices as well. In the fourth quarter of 2014, POSH booked a loss of $8.3m due to its joint venture in Mexico.

“Whilst the group continues to pursue opportunities in the Mexican market, it is also actively seeking employment opportunities in other regions and taking steps to reduce operating expenses,” he said.

As at 31 December 2014, POSH operated a fleet of 109 vessels with another 21 vessels on order.

TAGS: Offshore POSH