POSH’s 2Q hit by project deferrals

SINGAPORE (Aug 4): DBS Group Research is maintaining its “hold” call for PACC Offshore Services Holdings (POSH) with a lower target price of 33 cents from 35 cents, after the oil & gas company reported disappointing 2Q results.

For the quarter to June, POSH reported a net loss of US$17.5 million ($23.5 million), which included US$6.4 million in doubtful debt allowances and a US$5 million provision for the POSH Terasea joint venture.

Revenue fell 31.5% to US$46.1 million and gross profits fell 87.3% to US$1.8 million, dragged down by lower utilisation across the Offshore Support Vessel (OSV), Offshore Accommodation and Transport & Installation (T&I) segments from the early termination of some charter contracts and project deferrals.

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