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POSH Q3 profit dips amid challenging offshore market

POSH Q3 profit dips amid challenging offshore market
PACC Offshore Services Holdings (POSH) has seen its third quarter profit declined while revenue improved in a market challenged by weak oil prices and reduced activities.

Net profit for the third quarter ended 30 September 2015 was registered at $12.58m, down 14% compared to the profit of $14.65m in the previous corresponding period.

The reduced profit was due to a smaller $800,000 one-off gain from the sale of vessels during the quarter, compared to a $11.6m exceptional gain in the year-ago period.

The third quarter revenue was recorded at $80.4m, an increase of 20% year-on-year on the back of strong growth in the offshore accommodation business division.

“Our steady performance this quarter despite continued volatility in oil prices reflects the soundness of our diversified and differentiated strategy,” said Gerald Seow, ceo of POSH.

At current weak oil prices, oil companies are reducing or deferring their capital expenditure, reviewing existing charter arrangements and renegotiating charter rates. POSH is facing similar demands from charterers and expects continued pressure on charter rates and vessel utilisation in the next few quarters.

In the near term, the group said it will concentrate efforts in establishing market share in key markets such as the Middle East and Africa and improve utilisation by exploring more charter opportunities in frontier markets.

TAGS: Offshore