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POSH breaking out?
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jeremyow
Master |
05-May-2017 10:47
Yells: "Passionate business investor" |
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I think privatising the company may not be an option for them at least currently since that would mean they have to raise money to buy out their shareholders. But looking at their financials, they cannot even pay their current debts coming due and they still have another hefty sum of non-current debts carried on their balance sheet. Even if they managed to raise funds to privatise their company, what comes after may be a huge nightmare for them in terms of chalking up even more debts upon debts to settle. Thus they have to look at refinancing their current debts or find startegic investors to come in to provide the capital to tide them through. And I doubt any other larger O& M company will be keen to do acquisition to take over POSH in this challenging time and environment for the offshore and marine industry. Everyone including the big O& M boys could be trying to survive and stay afloat ensuring liquidity in this time of harsh operating environment and acquisition of other smaller companies is their last concern. Even large well known O& M companies like HanJin Shipping already went bankrupt on Feb 2017 even though the two POSH and HanJin Shipping may not have exactly similar operations but both are nevertheless affected by this downturn in the O& M industry. So, now is the survival of the fittest because HanJin also fell due to failure to fulfill its debt obligations admist this challenging time in the O& M industry. All the O& M companies that went bankcrupt all due to same downfall which is failure to fulfill their high amount of debts chalked up during the good times of expansion and growth in the industry. Now the downturn in the industry really hit back hard on every O& M company which has chalked up huge debts carrying a high financial leverage on their balance sheet.
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RedEye1811
Master |
05-May-2017 10:25
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I did not have high expectations but I must admit it worse than what I was thinking.... It begins to make you wonder how many OSV firms will actually exist by the time conditions for the sector begin to look up...if things continue to be bad and more existing OSV firms go on the brink it almost seems cheaper to start a new company, buy all the excess capacity vessels at dirt cheap prices (those you only borrow a low amount) and start afresh having to pay little financial expense etc....yes, that an obsurb idea but just makes one feel like why save existing firm when starting a new one likely require far less capital expenditure and debt... As things so bad for PACC wonder if they will go private...take company out of public eye to right the ship... 
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jeremyow
Master |
05-May-2017 09:52
Yells: "Passionate business investor" |
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Yes, just briefly looked through POSH' s 1Q financial results. It shows further deterioriation in the financials as compared to FY2016' s results. The operating cashflows has already started to run into a negative in FY2016 which operations cannot generate cash for the company. The near term concern is the current debts of US$232.6m which will come due within a year and even if we factor in the total current assets of US$174.4m is still not enough to meet this current debt obligation, not to mention the small amount of cash it has which is US$11.8m which hardly can pay the debts. The only course is to refinance the current debts. But if business continue to deteroriate this year, then maybe difficult to get refinancing from banks. Hope they can tide through this current challenging environment. |
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investshare
Supreme |
05-May-2017 07:11
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Very bad result | ||||
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jackson5
Master |
23-Feb-2017 14:44
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Surprised , not so much of selling ? |
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RedEye1811
Master |
22-Feb-2017 12:30
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Can book US$200 million in revenue...does not mean going to have good cash flow too....if cannot collect NO cash, NO pay....
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supertwk
Member |
22-Feb-2017 11:33
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Lol...DBS still have faith in POSH. http://www.theedgemarkets.com.sg/article/stock-set-ride-capex-recovery-oil-gas-services |
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investshare
Supreme |
22-Feb-2017 11:07
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$37m revenue how to have good cash flow. Even don't pay supplier don't pay workers also not enough to pay interest.
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RedEye1811
Master |
22-Feb-2017 11:02
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Revenue not the big danger...the poor free cash flow in Q4 and couple quarters before that a much bigger worry...but if they refinance, shift decks around and get some papa input money then can still muddle through in near term...
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investshare
Supreme |
22-Feb-2017 10:48
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4q revenue $37m only.
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RedEye1811
Master |
22-Feb-2017 09:53
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As at Dec 31 2015 they had USD$559 million due in 12 months of that end year, and they had cash and cash equivalents of USD$13 million....Current ratio last year worse then right now....just need to get refinancing like did for 2016...with Kuok money backing them refinancing should not be issue...
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earlybird14
Supreme |
22-Feb-2017 07:27
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Ask money from Datuk kuok Loh.
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investshare
Supreme |
22-Feb-2017 07:06
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How to pay???
The listed group has US$269.11 million of unsecured and secured borrowings and debt securities payable in one year or less as at Dec 31, 2016. Unsecured borrowings and debt securities repayable after one year stood at US$439.23 million. Cash and cash equivalents as at Dec 31, 2016 were US$15.06 million compared to US$13.78 million a year ago. |
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Wind22i
Supreme |
21-Feb-2017 22:27
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http://www.businesstimes.com.sg/companies-markets/poshs-q4-loss-widens-on-massive-impairments | ||||
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Wind22i
Supreme |
21-Feb-2017 22:26
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The impairment and losses is massive....sell.. | ||||
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supertwk
Member |
21-Feb-2017 22:18
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Oil price small recovery has little impact on these kind of stocks. Usually, it will impact more for Keppel FELTS or Sembcorp marines. OSV stocks depends very much on higher end Capex and O& M, it has already been cut a long long time ago. POSH is a much bigger company as compare to its competitor, so its really not surprising their revenue drop. Poor DBS, invest small small in posh and write good review about them, but yet still let them down. Poor Me :( |
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kerier
Veteran |
21-Feb-2017 22:15
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The majors are watching to see if OPEC can maintain this production cut and what shale players will do. Without a sustainable oil price above $60, they won' t be adding any rigs into the water anytime soon. |
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HB8289
Master |
21-Feb-2017 22:13
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POSH' s Q4 loss widens on massive impairmentsTuesday, February 21, 2017 - 18:24
FOURTH quarter net loss for PACC Offshore Services Holdings (POSH) widened to US$345.44 million from US$149.67 million on lower revenue and huge impairments to goodwill and vessels.
PHOTO: PACC
FOURTH quarter net loss for PACC Offshore Services Holdings (POSH) widened to US$345.44 million from US$149.67 million on lower revenue and huge impairments to goodwill and vessels. Loss per share was 19.06 US cents compared to 8.25 US cents for a year-ago period. For the quarter ended Dec 31 2016, revenue fell 49 per cent to US$36.67 million mainly due to lower utilisation and charter rates across its major business segments. POSH booked US$111.18 million and US$198.95 million of impairments for Q4 on goodwill and vessels, respectively. Full year loss is US$371.45 million compared to US$130.96 million. POSH said that the outlook for the oil and gas sector continues to remain depressed and the timing of recovery is uncertain. " Whilst Opec (Organization of the Petroleum Exporting Countries) had reached an agreement to cut oil production in November 2016, supply and demand balances are still slow to return to equilibrium. " The group will continue to focus on managing costs and maximising the utilisation of its fleet," it said. The listed group has US$269.11 million of unsecured and secured borrowings and debt securities payable in one year or less as at Dec 31, 2016. Unsecured borrowings and debt securities repayable after one year stood at US$439.23 million. Cash and cash equivalents as at Dec 31, 2016 were US$15.06 million compared to US$13.78 million a year ago. |
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investshare
Supreme |
21-Feb-2017 22:07
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The fact that revenue drop so much in 4q when oil price recover, prove that production cut is not good for supplier. | ||||
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supertwk
Member |
21-Feb-2017 21:47
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Anyway, i' m surprise their cash flow is rather high, should be able to stay afloat for the time being. The entire industrial has already been over supply since 2 or more years ago, these impairment are expected, obvious and calculated one. IPO 2 years ago has been a clever move to transfer the risk to the public since that time the stock price for offshore marines are very high. The kouk can now buy back at a cheaper value. |
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