Hong Kong: In a big setback to Pacific Basin’s strategy to focus its business more exclusively on dry bulk, its long discussions with PSA Marine to sell off its towage division has fallen through.
Pacific Basin first mooted the idea of offloading its Australasian focused PB Towage last October. This March it entered exclusive discussions with PSA Marine over the sale of its entire harbour towage and offshore towage businesses. The sale, however, has not materialised.
“This outcome was influenced by the increasingly competitive landscape in the Australasian harbour and offshore towage and infrastructure support markets, which has led the [b]oard 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,” Pacific Basin said in a release to the Hong Kong Stock Exchange.
The failed sale is going to have a deleterious effect on Pacific Basin’s interims, the company warning that it would now record a loss as opposed to an expected $0.3m profit.
Pacific Basin said PB Towage is currently engaged in tenders for potential new business and Pacific Basin is now committed to continuing to support these initiatives and to grow the businesses.
Under head Mats Berglund, Pacific Basin has sought to concentrate its resources on its dry bulk activities, offloading non-core businesses including its ill-fated foray into roros. [26/06/14]