Triyards reports 25% fall in Q1 profit

Efforts to expand and diversify its business boosted first-quarter sales at Triyards Holdings but the lack of a one-off gain, such as that posted a year earlier, meant earnings dived.

Net profit at the offshore marine and engineering firm came in at US$6.16 million (S$8.9 million) for the three months to Nov 30, down 25 per cent on the US$8.2 million posted in the same period a year earlier.

The firm had reaped a one-off gain of US$3.9 million in 2014 from the provisional negative goodwill recognised on the acquisition of Strategic Marine.

Revenue increased 38 per cent to US$78.1 million, largely due to new boat-building contracts secured in the previous financial year. These included four liftboats and and two multi-purpose support vessels that are almost completed.

  • AT A GLANCE

  • NET PROFIT:

    US$6.157 million (-25%)

  • REVENUE:

    US$78.125 million (+38%)

"Our recent wins from new clients such as ABC Maritime, Taiwan Ocean Research Institute and CPC Corporation, as well as new contracts from repeat clients in the past year, demonstrate their trust and confidence in our capabilities and the industry's healthy demand for our products and services," said chief executive Chan Eng Yew in a Singapore Exchange filing yesterday.

Earnings per share for the the first quarter was 1.9 US cents, down from 2.61 US cents a year earlier, while net asset value per share was 66.2 US cents as at Nov 30, up from 64.22 US cents at Aug 31.

The firm said it has reduced or postponed its oil and gas capital expenditure since the beginning of last year due to weaker crude prices and diversified its client base and expanded its product offerings beyond energy related assets.

"Building upon Triyards' ability to service the full value chain - from construction, production and decommissioning to inspection and maintenance - we are working hard to establish other recurrent income streams as we achieve greater inroads for our Triyards-manufactured turrets and cranes," said Mr Chan.

Triyards shares closed 1.5 cents, or 3.16 per cent, higher at 49 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on January 09, 2016, with the headline 'Triyards reports 25% fall in Q1 profit'. Print Edition | Subscribe