PACC Offshore Services suffers $13m loss in 3Q

More impairment losses expected for the whole year.

PACC Offshore Services Holdings (POSH) reported a 48% YoY drop in revenue to US$41.6m and a net loss of S$13.0m in 3Q16, bringing 9M16 net loss to US$26.1m.

OCBC Investment research notes that market conditions continued to deteriorate and gross loss of the OSV division continued to grow QoQ, while the T&I and offshore accom segments also reported poorer performances on a sequential basis.

Looking ahead, the research house believes the carrying value of the goodwill arising from the acquisition of PSA Marine's offshore business in 2007 and the carrying value of POSH's fleet of vessels will be impaired; this amount will be determined at year end.