Home Capital Broker's Calls

More impairments ahead for this O&G company

Gwyneth Yeo
Gwyneth Yeo11/8/2016 12:17 PM GMT+08  • 2 min read
More impairments ahead for this O&G company
SINGAPORE (Nov 8): OCBC Investment Research is maintaining its “hold” rating on PACC Offshore Services Holdings with a fair value of 30 cents, in anticipation of further impairments going forward.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Nov 8): OCBC Investment Research is maintaining its “hold” rating on PACC Offshore Services Holdings with a fair value of 30 cents, in anticipation of further impairments going forward.

According to OCBC’s analyst Low Pei Han, the carrying value of the goodwill from POSH’s acquisition of PSA Marine’s offshore business in 2007 and the carrying value of POSH’s fleet of vessels are expected to be impaired, with the actual amount to be determined by year-end.

As it stands, POSH has US$168.3 million ($233.9 million) of goodwill in its books from the PSA acquisition, and fixed assets of US$1.33 billion. Back in 4QFY15, the group had already made an impairment of US$127 million on goodwill and a US$21.4 million impairment on fixed assets.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now