Wednesday, 10 May 2017

SGX Shares: PACC Offshore Services Holdings Update ( 2017 to Remain Weak )
  • US$18.4m net misfortune in 1Q
  • Genuinely esteemed
  • Privatization a probability
  • Still in a Loss
PACC Offshore Services Holdings (POSH) revealed a 42% YoY fall in income to US$34.3m and a net loss of US$18.4m in 1Q17, versus net benefit of US$4.5m in 1Q16. There were inconsequential irregular things in the quarter. The greater part of the drop in income originated from the seaward convenience portion (- 65% YoY to US$10m in 1Q17) as the SSAV POSH Xanadu finished its augmented contract in Mar 2017 on decreased sanction rate and two of the light development vessels were not conveyed in the quarter. As at 31 Mar 2017, POSH had undrawn bank lines of about US$274.1m versus US$282.9m on 31 Dec 2016. Net adapting was 1.05x as at end Mar. 

Armada and Operational Updates

Out of the two LCVs that were sit in 1Q17, we comprehend that one of them initiated work in late Apr and will work for around six months, while the other is as yet searching for work. Concerning the gathering's staying two LCVs, one will go to Africa in mid May, while the last one is working in Thailand till the finish of this current year. With respect to the gathering's SSAVs, POSH Xanadu is as of now offering for work while POSH Arcadia is as of now working in Indonesia till Jun.

Work for Shell Prelude will begin for POSH Arcadia generally in Jul, for no less than 100 days. After a generally calm 1Q17, the gathering's JV POSH Terasea is likewise anticipated that would increase in 2Q17 and stay occupied for whatever is left of the year, with work booked for the INPEX Ichthys CPF and FPSO, the Shell Prelude FLNG stage, and in addition Egina FPSO unit. 

See More - Bullish market for Stocks Investment
Starting at 1Q17, the gathering had four vessels which initiated sanction with an oil major in the Middle East and the staying eight vessels will be conveyed continuously in the following seventy five percent of FY17. In all out it has 10 vessels under development, of which US$75.4m in capex are exceptional.

Look after HOLD

Keep up HOLD with S$0.335 reasonable esteem appraise (in light of 0.7x mixed FY17/18F book). With the present privatization subject in the market, there is likewise the likelihood of privatization by primary shareholder, Kuok Group.

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