Triyards sees 73% fall in Q4 profit as margins are squeezed

Aerial view of a Triyards shipyard in Vietnam.
Aerial view of a Triyards shipyard in Vietnam.PHOTO: TRIYARDS

SINGAPORE - Triyards Holdings reported on Friday (Oct 21) a 73 per cent fall in net profit to US$2.2 million (S$3.06 million) for the fourth quarter ended Aug 31 from the year ago period.

This mainly due to lower gross profit margins resulting from different mix of projects, said the offshore vessel fabrication and engineering solutions unit of Ezra Holdings.

Revenue grew 7 per cent year-on-year to US$94.2 million, driven by contributions across all product and geographical segments.

For the full year, Triyards saw earnings drop 34 per cent to US$17.79 million from a year ago although revenue grew 20 per cent to US$324.9 million. Earnings per share for the full year fell to 5.48 Singapore cents from 8.43 cents a year ago.

No dividend was declared by the company.

Commenting on the Group's performance, Triyards chief executive officer Chan Eng Yew said: "While oil prices have recovered slightly since the beginning of this year, we are keenly aware that customers remain cautious. The group continues to build on our product range and client base, focusing on within-budget and on-time execution of quality and high performance vessels. This strategy has allowed us to grow our revenues despite the challenging market conditions."

The new product lines being added to its orderbook include chemical tankers, scientific research vessels, windfarm crew transfer vessels and LNG-powered aluminium catamarans.

Triyards also announced that it has also secured several new fabrication and service vessel contracts. They add a total of US$27.55 million to its order book which now stands at US$422 million.