Pacific Basin flags H1 profit warning on failed PB Towage sale

2014-06-27

There seems to be no end to troubles created by Pacific Basin's forays outside its core business, with the minor bulks specialist announcing a profit warning in line with its inability to divest its Australian-based PB Towage harbour and offshore towage business.

Pacific Basin had last October announced that it was in exclusive discussions with PSA Marine for the possible sale of PB Towage.

This has apparently fallen through. "The Board wishes to inform the company’s shareholders and potential investors that the disposal discussionhas not produced any offer and the Company will therefore maintain its ownership of PB Towage. This outcome was influenced by the increasingly competitive landscape in the Australasian harbour and offshore towage and infrastructure support markets, which has led the Board to reassess the prospects for PB Towage, with a particular focus on its likely future cash flows, and to downgrade the outlook for its long-term earnings capability," it said in a stock market announcement.

Pacific Basin will take a non-cash impairment charge of about $58.5m for vessels and related investments and a further provision of approximately $2.5m, it said. This will be reflected in the first half results and is expected to result in a net loss for the period, it added, "We remain committed to providing a secure and reliable service to both our harbour and offshore towage customers. We are currently engaged in tenders for potential new business and are committed to continuing to support these initiatives and to grow our businesses.

Source from : Seatrade Global

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