PACC OFFSHORE SVCS HLDG LTD.
U6C.SI
PACC Offshore Services Holdings - One For The History Books
- Significant role in supporting Shell Prelude.
- POSH Terasea to remain busy.
- But insufficient to offset softness in other areas.
World’s largest offshore facility to sail away soon
- Shell Prelude, the world’s largest offshore facility ever constructed, is set to be delivered in late Jun by Samsung Heavy Industries and should arrive in Australia after a two-month journey1 .
- This revolutionary vessel – bigger than the combined size of four football fields and six times the weight of the world’s largest aircraft carrier – compresses the sprawling mass of a traditional land-based LNG plant into a large custom-built barge.
- Petronas has already deployed the world’s first LNG facility in Malaysia, but Prelude will be far and away the largest.
To play a significant role in supporting project
- It is hence perhaps a source of pride for Singapore that two local companies, PACC Offshore Services Holdings (POSH) and Ezion Holdings, will play a part in supporting this significant project.
- POSH Terasea, a 50-50 JV between POSH and Terasea Pte Ltd (in turn a JV between Ezion and Seabridge Marine Services) will be responsible for the 4800km tow from Samsung, and the positioning of the vessel at the Prelude field in Australia.
- POSH will also be providing its semi-submersible accommodation vessel POSH Arcadia to house up to 750 workers during the hook-up and commissioning phase, a huge undertaking that could take up to four months, according to Upstream’s sources.
- For the towing work, five vessels will be deployed – the AHT vessels Terasea Osprey, Terasea Falcon, Terasea Hawk and Terasea Eagle, plus the 16,000 BHP AHTS vessel POSH Champion.
POSH Terasea a bright spot but not enough
- Besides this, POSH Terasea is also scheduled for work for the INPEX Ichthys CPF and FPSO, as well as Egina FPSO unit. Hence after a relatively quiet 1Q17, POSH Terasea is expected to ramp up and remain busy for the rest of the year. This compares to net loss of US$7.8m in 2016 and net profit of US$15.7m in 2015.
- Meanwhile, the overall operating environment for the broader sector remains challenging, especially for the OSV segment and some parts of the offshore accommodation segment.
- We tweak our USD/SGD assumptions and our FV eases slightly from S$0.335 to S$0.325. Maintain HOLD.
Low Pei Han CFA
OCBC Investment
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http://www.ocbcresearch.com/
2017-05-31
OCBC Investment
SGX Stock
Analyst Report
0.325
Down
0.335
