SINGAPORE (May 4): PACC Offshore Services Holdings has sunk into the red in 1Q ended March.
The offshore marine services provider posted a loss of US$18.4 million ($25.7 million) compared to earnings of $4.5 million a year ago.
Revenue declined 42% to US$34.3 million mainly due to continued challenging conditions across the industry that resulted in lower utilisation and charter rates across most of its business segments.
The group also recorded a loss of US$4.4 million on share of JV results, mainly due to lower vessel utilisation of POSH Terasea as five vessels underwent drydocking during the quarter in preparation for their projects.
Captain Gerald Seow, CEO of PACC Offshore, said market conditions are expected to remain challenging for FY2017.
However, he says the group will continue to participate actively in tenders in the Middle East and Africa which remain active in current market conditions.
Shares of PACC Offshore closed 1 cent higher at 33 cents on Thursday.
