Triyards Holdings reported a 66 per cent fall in first-quarter net profit to US$2.1 million (S$3 million) from US$6.2 million a year ago, despite higher revenue.
The integrated service provider for the offshore oil and gas industry blamed the fall mainly on lower gross profit margins resulting from a different mix of projects and the competitive market environment.
For the three months to Nov 30, revenue rose by 17 per cent to US$91.2 million, largely because of contributions from two multi-purpose support vessels, three chemical tankers, four escort tugs, one scientific research vessel and two oil tankers.
Earnings per share slipped to 0.64 US cent from 1.9 US cents previously, while net asset value per share climbed to 69.52 US cents from 68.9 US cents as at Aug 31.
Triyards said it had successfully diversified its clientele base and expanded its product offerings beyond the oil and gas sector in the past year and a half.
This has resulted in new product lines being added to its order book, it added.
Offshore-support vessel provider Vallianz Holdings is closing certain non-core business units to allow the group to focus on its core vessel chartering business.
This streamlining of operations was in response to the challenging market conditions in the offshore and marine industry, Vallianz said.
At the end of last year, the group had ceased operations at its Singapore shipyard, owing to the industry slowdown and discontinuation of business with a key local customer.
Vallianz will consolidate its yard operations at its marine base in Batam. This marine base will continue to service the group's fleet of vessels and support activities required to fulfil its chartering contracts.
The decision to cease the shipyard operations in Singapore follows the closure of the group's businesses in the provision of crew management services to external parties and travel services to the offshore oil and gas industry, said Vallianz.