Triyards Q3 profit down 24% with higher revenue outweighed by rise in costs

An aerial view of Triyards' shipyard in Ho Chi Minh City, Vietnam, on Nov 26, 2015.
An aerial view of Triyards' shipyard in Ho Chi Minh City, Vietnam, on Nov 26, 2015.PHOTO: REUTERS

SINGAPORE - Triyards Holdings announced on Friday (July 8) a 24 per cent fall in its net profit to US$4.12 million for the third quarter ended May 31 from US$5.4 million a year ago.

The offshore vessel fabrication and engineering solutions unit of Ezra Holdings said revenue increased 28 per cent to US$82.1 million in the quarter but this was outweighed by cost of sales swelling 37 per cent to US$68.2 million.

This saw gross profit dip 2 per cent to US$13.9 million.

Looking ahead, Triyards said it expects market conditions for the oil and gas industry "to remain extremely challenging" for the next 12 months, despite a moderate rebound in the oil price since the beginning of this year.

"However, over the past 12-18 months, the group has successfully diversified its clientele base and expanded its product offerings beyond O&G-related assets," said Triyards. "This resulted in new product lines being added to its orderbook, such as the chemical tanker, scientific research vessel, windfarm crew transfer vessel and LNG-powered aluminium catamaran."