This printed article is located at http://posh.listedcompany.com/includes/integration_external_financials.html

Financials

Second Quarter Financial Statement Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Profit & Loss

Consolidated Statement of Comprehensive Income

Balance Sheet

Review of Performance

Income Statement

2nd Quarter 2018 ("Q2 FY18") vs 2nd Quarter 2017 ("Q2 FY17")

In Q2 FY18, the Group registered revenue of US$83.1 million, a 95% increase from US$42.6 million in Q2 FY17. This was mainly due to improved average daily charter rates, particularly for the OA segment, and improved utilisation, for which the OA Semi-Submersible Accommodation Vessel (“SSAV”) segment reported 100% utilisation.

OSV

OSV segment revenue increased by 26% to US$26.0 million (Q2 FY17: US$20.7 million) due to improved utilisation of 76% (Q2 FY17: 64%) mainly attributable to the full contribution of 12 vessels (Q2 FY 2017: 6 vessels) deployed under long term charters to a Middle East National Oil Company. Notwithstanding increased operating expenses and lower average daily charter rates, the OSV segment was able to record a higher gross profit of US$0.8 million in Q2 FY18 compared to US$0.1 million in Q2 FY17.

OA

OA segment revenue increased by 252% to US$45.4 million (Q2 FY17: US$12.9 million), as both our 750 pax SSAVs POSH Arcadia and POSH Xanadu were fully employed during Q2 FY18. In addition to the improved performance of the SSAVs, the other OA vessels also reported higher average daily charter rates and utilisation. With better operating margin, the segment registered gross profit of US$11.6 million compared to gross loss of US$4.1 million in Q2 FY17.

T&I

T&I segment registered a revenue increase of 19% to US$4.6 million (Q2 FY17: US$3.9 million) due to higher vessel utilisation of 75% (Q2 FY17: 48%) which resulted in an improved gross profit of US$0.8 million (Q2 FY17: US$0.3 million).

HSER

HSER revenue increased by 39% to US$7.1 million (Q2 FY17: US$5.1 million) mainly due to higher revenue from salvage jobs and heavy lift vessels.

General & administrative (“G&A”) expenses and other income

G&A expenses increased by US$2.7 million or 39% to US$9.7 million (Q2 FY17: US$7.0 million) mainly due to increased personnel and legal costs as well as higher allowance for doubtful debts.

Finance costs increased by 43% or US$2.2 million due to higher loan balances and higher interest rates.

The Group's share of results from joint ventures (“JVs”) registered a loss of US$1.0 million in Q2 FY18 compared to a profit of US$2.6 million in Q2 FY17. This was largely contributed by the net loss incurred by POSH Terasea in Q2 FY18 as a result of lower vessel utilisation.

The Group recorded a net loss attributable to shareholders of US$5.8 million in Q2 FY18 compared to US$11.0 million in Q2 FY17.

6 Months ended 30 June 2018 ("1H FY18") vs 6 Months ended 30 June 2017 ("1H FY17")

In 1H FY18, the Group registered revenue of US$153.7 million (1H FY17: US$77.2 million), an increase of 99% or US$76.5 million. This was mainly due to improved vessel utilisation across the business segments and higher average daily charter rates for the OA segment. As such, the Group recorded gross profit of US$24.2 million in 1H FY18 compared to gross loss of US$7.4 million in 1H FY17.

OSV

While average daily charter rates were lower against the same period last year, OSV segment revenue increased by 36% to US$47.8 million (1H FY17: US$35.2 million) mainly due to higher vessel utilisation of 72% (1H FY17: 61%). As such, the segment achieved a gross profit of US$0.6 million in 1H FY18 compared to gross loss of US$4.6 million in 1H FY17.

OA

OA segment revenue increased 268% to US$84.3 million (1H FY17: US$22.9 million) mainly due to revenue contribution from POSH Arcadia, from the Shell Prelude project and POSH Xanadu which started work in early March 2018 for the Chevron Big Foot TLP project, and coupled with higher utilisation and higher average daily charter rates from the rest of the OA vessels. Consequently, the segment registered a gross profit of US$21.0 million in 1H FY18 compared to gross loss of US$6.8 million in 1H FY17.

T&I

T&I segment revenue increased by 16% to US$9.7 million (1H FY17: US$8.3 million) mainly due to higher vessel utilisation of 63% (1H FY17: 40%). While vessel utilisation improved, charter rates remained depressed. Consequently, the segment registered a lower gross profit at US$1.3 million (1H FY17: US$1.7 million).

HSER

HSER segment registered an 11% increase in revenue to US$12.0 million (1H FY17: US$10.8 million) mainly due to new salvage projects and higher revenue from heavy lift vessels. The lower gross profit of US$1.4 million in 1H FY18 (1H FY17: US$2.2 million) was mainly due to higher operating costs.

General & administrative (“G&A”) expenses and other expenses/income

G&A expenses increased by 42% or US$5.2 million to US$17.4 million (1H FY17: US$12.2 million) mainly due to increase in personnel expenses as a result of the reversal of prior year bonus provision in 1H FY17, increased legal costs as well as higher allowance for doubtful debts.

Finance costs increased by 43% or US$4.2 million to US$14.1 million (1H FY17: US$9.9 million) mainly due to higher loan balances and higher interest rates in 1H FY18.

Share of joint ventures’ loss decreased by 79% or US$1.7 million to US$0.5 million in 1H FY18 (1H FY17: US$2.2 million loss) mainly due to higher vessel utilisation from our Indonesian JV.

Accordingly, the Group's net loss attributable to shareholders decreased to US$13.0 million in 1H FY18 compared to US$29.6 million in 1H FY17.

Statement of Financial Position

The Group's net asset was US$454.5 million as at 30 June 2018.

The Group had net current liabilities of US$170.2 million mainly due to bank borrowings due within one year.

Statement of Cash Flows

The Group reported a higher cash generated from operations of US$24.2 million for 1H FY18 against US$20.6 million for 1H FY17. However, higher interest expenses for 1H FY18 (US$14.5 million) and taxes (US$4.2 million), reduced the net cash generated from operating activities to US$6.3 million for 1H FY18 against US$11.6 million for 1H FY17.

Net cash used in investing activities was US$9.9 million in 1H FY18 compared to US$40.1 million in 1H FY17. This was mainly due to lower acquisition of fixed assets and increase in proceeds from disposal of fixed assets.

The Group's net cash generated from financing activities in 1H FY18 was US$2.3 million (1H FY17: US$28.1 million) due to substantial decline in incremental bank borrowings

Commentary

Whilst market sentiment is more positive amid signs of increased investment and Capex in offshore oil field development, the oversupply of OSV vessels continues to exert pressure on both utilisation and charter rates.

The two SSAVs will remain employed in current charters until Q3 FY18, and POSH Xanadu will commence her new charter to Petrobras in December 2018 for a firm period of 8 months and with an option to extend for a further 8 months.

Please read our General Disclaimer & Warning carefully.
Use of this Website constitutes acceptance of the Terms of Website Use.
Copyright © 2018. ListedCompany.com. All Rights Reserved.