Pacc Offshore Services Holdings (POSH) reported a 22% YoY rise in revenue to US$71.0m but saw a 49% drop in net profit to US$6.1m in 2Q15, due to a lower gross profit margin of 20.4% vs. 30.1% in 2Q14, as well as lower vessel disposal gains.

Still, we estimate core net profit fell by about 43% YoY in the quarter. Looking ahead, management expects pressure on charter rates to continue, given the oversupply of vessels. Pending an analyst briefing, we maintain our HOLD rating but put our fair value estimate of S$0.44 under review.

Source: OCBC Research - 5 Aug 2015