SINGAPORE (May 8): PACC Offshore Services Holdings (POSH), the offshore marine services provider, saw 1Q net losses shrink 61% to US$7.2 million ($9.6 million) from US$18.57 million from a year ago.

For the 1Q18 ended March, POSH more than doubled its revenue to US$70.6 million from a year ago. This was mainly due to higher utilisation for three of its four business divisions: Offshore Supply Vessels (OSV), Offshore Accommodation (OA) and Transportation & Installation (T&I).

Correspondingly, POSH reported a gross profit of US$9.9 million. For share of joint ventures’ results, the Group recorded a profit of US$0.6 million compared to a loss of US$4.8 million in Q1 FY2017, primarily on improved contribution from its POSH Terasea joint venture.

The group’s general and administrative expenses increased by US$2.4 million mainly due to higher legal fees and normalisation of personnel expenses from 1Q17 which had a reversal of bonus provision for prior year.

The group also generated higher net operating cash flow of US$12.2 million in 1Q18, up from US$3.2 million cash used in 1Q17 due to increase in revenue contribution from its business segments as well as working capital changes. Net gearing as at March 31 was stable at 1.6 times.

In its outlook, POSH says in the immediate term, charter rates are expected to remain under pressure due to the continued oversupply of vessels. However, there are positive indicators in the market, with oil and gas capital expenditure expected to increase on firmer oil prices and improved financial performance of oil companies.

Shares in POSH closed 0.5 cent higher at 32 cents on Tuesday.