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Sembmarine to exit shipping partnership with Posh

Singaporean shipyard to sell out of Pacific Workboats joint venture

Offshore marine services provider Pacc Offshore Services Holdings (Posh) has signed an agreement with its partner in Pacific Workboats (PWPL) to acquire the interests it did not already own in the joint venture.

Posh said on Wednesday that it agreed with Dolphin Shipping, a subsidiary of Sembcorp Marine (Sembmarine) to acquire its 50% interest in the Asia Pacific-focused PWPL.

PWPL has been a 50:50 joint venture between Posh and Dolphin since 2003, and has been offering harbour services in Singapore and across the region.

Sembmarine in Sete drillship settlement

The transaction, which is expected to be completed by the end of the year, will see Posh acquire Dolphin’s stake for US$679,464.

Once the deal is complete, PWPL will become a wholly-owned subsidiary of Posh.

“This decision to acquire the rest of PWPL is aligned with Posh’s ongoing comprehensive review of all its businesses and investments. Thereafter, Posh will continue to offer harbor services in Singapore independently while re-deploying select assets from PWPL for longer-term charters overseas,” the company said.

Chief executive of Posh, Lee Keng Lin said: “The prospects for the harbor services sector remain attractive, and we look forward to this next chapter and will work to grow our business both in Singapore and abroad.

“This decision on PWPL marks another proactive step forward in our comprehensive business review, as we continue to sharpen our strategy and be better positioned for our next phase of growth."

Posh reveals potential impairment from loan default

This year has seen Posh increase its losses in the second quarter as revenues slipped.

The company revealed a loss of US$8.6 million for the three months to 30 June, an increase on the nearly US$5.8 million loss recorded in the second quarter of 2018.

The fall deeper into the red came as second quarter revenue slipped 11%, year-on-year, to less than US$74 million.

Posh noted that an increase in revenue from the offshore supply vessel and transportation and installation businesses were offset by lower contributions from the offshore accommodation and harbour services and emergency response business segments.

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