Triyards posts US$6.25m loss for Q2 on Ezra-related allowances

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

SINGAPORE - Triyards Holdings posted on Friday (April 7) a net loss of US$6.3 million (S$8.8 million) for the second quarter ended Feb 28, 2017, against earnings of US$5.3 million for the year-ago quarter.

This was largely due to approximately US$8.4 million in allowance Triyards made for doubtful receivables from related/affiliated entities of debt-laden Ezra Holdings which either face a potential going concern issue or have filed for Chapter 11 of the United States Bankruptcy Code.

Revenue for the quarter was maintained at US$70.6 million, but profit from operations fell 38 per cent to US$4.4 million mainly due to a different mix of projects and the competitive market environment, said the company.

Triyards also said on Friday that it has expanded client base with US$32.9 million of contract secured in April.

The contracts include the fabrication of seven tugboats and one 16-metre aluminium crew transfer vessel from an established Vietnamese vessel owner and operator. The vessels are slated for maritime services and will be delivered by Triyards' Saigon Shipyard.

On the group's latest contract wins, Triyards CEO Chan Eng Yew said: "These contracts deepen the group's portfolio and boost the purpose-built vessel solutions we offer from our yards in Vietnam and Singapore. In addition, it affirms the success of TRiyards' diversification strategy and will contribute the earnings visibility for the group in FY18. We remain committed to strengthening the resilience of our business to tide through these difficult industry conditions."