SINGAPORE (Aug 1): PACC Offshore Services reported a second straight quarter of losses for FY17, registering a loss of US$9.1 million ($12.4 million) for 2Q17 compared to a loss of US$17.5 million posted a year ago.
See: PACC Offshore sinks into the red in 1Q
This comes as revenue declined 8% over the quarter to US$42.4 million from US$46.1 million in 2Q16 due to lower contributions from the offshore accommodation (OA) and harbour services and emergency (HSER) segments by 24% and 15% to US$12.7 million and US$5.1 million, respectively.
Revenue from the OA segment fell over the quarter in the absence of contributions from deploying POSH Xanadu, a semi-submersible accommodation vessel (SSAV), and two of the light construction vessels (LCVs).
On the other hand, HSER revenue fell mainly due to lower overseas and spot charters for harbour tugs.
The revenue decline was more than offset by lower general & administrative (G&A) expenses, which fell 48% to US$7 million from US$13.4 million a year ago due to allowance for doubtful debts of US$6.5 million provided in 2Q16.
Finance costs increased by 53% or US$1.8 million due to higher loan balances and higher interest rates in Q2 FY17.
Share of results from joint ventures (JVs) in 2Q came in a profit of US$4.6 million compared to a loss of US$3.1 million a year ago, largely contributed from POSH Terasea as the JV executed and completed several major towage and positioning projects in 2Q17.
Noting how oil prices have remained below US$50/bbl despite efforts by oil-producing countries to curb oil production, PACC Offshore says it will continue to participate actively in tenders and focus in the Middle East and West Africa, which remain as key regions where oil majors continue to issue tenders for vessel requirements.
Shares in PACC Offshore closed flat at 28 cents on Tuesday.
