Triyards Holdings, the yard-operating unit of offshore marine firm Ezra Holdings, has swung deep into the red following the termination of two shipbuilding contracts worth about US$51 million (S$68 million).
The company said its Vietnam facility has received termination notices from a customer, which is claiming reimbursements of all sums paid in advance.
These amount to about US$10.2 million, it said in a Singapore Exchange (SGX) filing yesterday.
Triyards said the two contracts were terminated because it was unable to deliver the projects by the contractual delivery dates as it lacked funding to complete the vessels. The company said it is facing loan-repayment issues that could threaten its ability to carry on as a going concern.
The contract cancellations helped send Triyards into a net loss of US$162.5 million (S$217 million) for the 12 months to Aug 31 against a net profit of US$17.8 million a year earlier. Loss per share stood at 50.06 US cents, from earnings per share of 5.48 US cents. No dividend has been declared for the period.
The group had net current liabilities of US$60.8 million as at Aug 31. Triyards has defaulted on certain bank facilities and is in discussions with lenders over a settlement, it said.
Full-year revenue fell by US$208.7 million, or 64 per cent, to US$116.2 million from a year earlier. This was mainly attributed to lower contributions from its units, cost overruns of certain projects, provisions for liquidated damages due to contract cancellations and the reversal of US$51 million in revenue from the two shipbuilding contracts.
Last week, the company announced that it has applied to the SGX for a waiver of the listing requirements to hold its annual general meeting and announce its first-quarter earnings, citing ongoing restructuring plans.
It has sought an extension to hold the AGM by March 31 and announce the results by Feb 28.
Triyards parent Ezra filed for bankruptcy protection in March.
Triyard stock has been suspended since September.