Dyna-Mac posts higher Q1 profits, secures $50 million of new orders

SINGAPORE - Higher demand for its offshore structures led to an increase in first-quarter revenue and profits for Singapore-listed Dyna-Mac Holdings.

The offshore fabrication specialist said on Monday night that its revenue rose 31.3 per cent in the first three months of the year over a year ago to $78.9 million.

This was due to higher activity levels across all the group's yards, it said.

But higher operating and finance costs ate into profit margins. Dyna-Mac said its gross profit margin slipped to 22 per cent in the first quarter from 24.4 per cent a year earlier, while its net profit margin dipped to 10.1 per cent in the quarter from 11.2 per cent a year ago.

As a result, net profit rose a smaller 18.5 per cent in the quarter over the previous year to $7.9 million.

Dyna-Mac also said on Monday night that it has secured new fabrication orders worth $50 million, bringing its order book to $342 million.

The new orders are to build eight units of topside modules and three units of structural blocks, the group said.