Maybulk to keep stake in Posh

KUALA LUMPUR: Malaysian Bulk Carriers Bhd (Maybulk) plans to maintain its stake in associate PACC Offshore Services Holdings Ltd (Posh), which is planning an initial public offering (IPO) on the Singapore Exchange.
Maybulk CEO Kuok Khoon Kuan said its 21.23%-owned Posh is a significant contributor to the group's bottom line.
"When we last had our EGM, we already got the mandate from our shareholders to maintain (the stake) and we're happy with that," he told reporters after the group's AGM here on Friday when asked if the shipping firm would consider increasing its stake in Posh.
The group said it needs to balance what it can return to shareholders against the group's growth plans, namely reinvestment in assets and increasing its stake in Posh.
Maybulk has a financial commitment of RM346.1 million for new ships and S$82.4 million for subscription of new shares in Posh.
It said Posh reported another commendable year in 2013 due to the buoyant offshore marine services sector, benefiting from increased offshore activities, charter rates and utilisation increased compared with the previous year. This, coupled with the addition of new vessels into Posh's fleet, enabled its share of results from Posh to increase to RM48.6 million in 2013 from RM35.3 million in 2012.
The group also said it is in its interest to remain significantly invested in the offshore sector.
As at Dec 31, 2013, the Posh group operated a diversified fleet of 112 vessels (inclusive of vessels operated by joint ventures) across four business segments in the offshore marine sector, namely offshore supply vessels, transportation and installation, offshore accommodation and harbour services and emergency response.
Kuok said this year will see an improvement over 2013.
"The first nine months of last year did not do well but there was a spike in the last quarter. This year started more positively than last year and we're hopeful.
"We're hopeful on Posh and it is going to contribute positively to our results," Kuok said, adding that the other sectors like dry bulk carriers and tankers should also contribute more positively.