POSH targets new business opportunities in Middle EastCompany News // February 25, 2016
Offshore marine services provider PACC Offshore Services Holdings (POSH) has announced operating results for the financial year ended 31 December 2015.
Captain Gerald Seow, Chief Executive Officer at POSH, said: "We are pleased to report operating profit of US$13.6 million in FY2015 before impairments, write-offs and gains from disposals amidst the challenging business conditions in the year.
"Market conditions for 2016 are expected to remain difficult, and we will continue to take proactive action to streamline operations while further sharpening our business strategy to capture new opportunities and markets, particularly in the Middle East. Our prudent capital management reinforces our ability to deal with uncertainties in the market and seize opportunities that may arise."
For the three months ended 31 December 2015 the group reported a year-on-year revenue increase of 29 per cent to US$71.8 million primarily due to strong growth in its accommodation business. The strong performance in offshore accommodation came primarily from the chartering of the 750-pax POSH Xanadu semi-submersible
accommodation vessel and a charter for three 238-pax light construction vessels: POSH Endurance, POSH Enterprise and POSH Endeavour.
Gross profit grew 166 per cent year on year to US$17.2 million in the quarter. Share of joint ventures’ results saw a loss of US$12.4 million, compared to a loss of US$5.0 million in the previous corresponding period. This was mainly due to lower charter rates and utilisation in some of the group’s joint ventures and impairments of joint venture assets.
The group reduced general and administrative expenses down year on year to US$6.1 imllion as a result of its proactive cost management initiatives. It remained in a strong financial position as at the end of FY2015. It generated net operating cashflow of US$69.6 million with net gearing at 0.51 times. Subsequent to the financial year end, the group has also secured financing facilities of US$1 billion, part of which will be used to refinance existing loans.
OSV revenue was marginally lower at US$33.9 million (Q4 FY2014: US$34.4 million). Gross profit grew by 73 per cent year on year to US$4.6 million mainly due to lower operating costs following effective cost reduction initiatives. The offshore accommodation division recorded a nearly three-fold increase in revenue to US$26.8 million (Q4 FY2014: US$6.8 million) on the back of contribution from POSH Xanadu and the three vessels mentioned above.