PACC Offshore Services (POSH) has turned red in the third quarter and is bracing investors for an impairment charge in the following months.
The Singaporean company booked a net loss of $12.9m, compared to earnings of $12.6m a year earlier.
Its red bottom line came on the back of squeezed revenue, which was halved from $80.4m to $41.6m.
Gerald Seow, chief executive of POSH, said: “Our financial performance in the third quarter reflected the continued challenges facing our industry.
“We expect that the business environment for the remainder of 2016 and 2017 will remain challenging and could potentially deteriorate further.”
POSH had to face lower utilisation and charter rates between July and September and said the value of its fleet would be impaired.
But it did not give any guidance on the impairment charge the company is expected to recognise.
Seow noted that POSH maintained a sound balance sheet while it will remain focused on extracting cost efficiencies and driving utilisation rates.
“We believe in the long-term fundamentals for our industry, especially for operators with a modern fleet of vessels like ours,” he added.
