Triyards posts 25% fall in Q1 profit to US$6.2m

SINGAPORE - Offshore marine and engineering group Triyards Holdings announced a 25 per cent fall in net earnings for the first quarter of its 2016 financial year as higher revenue was more than offset by lower-margin projects and the absence of a one-time gain.

Revenue for the three months ended Nov 30 rose 38 per cent to US$78.1 million, from contracts for four units of self-elevating units and two units of multi-purpose support vehicles, and some industrial and offshore fabrication projects.

Net profit however fell to US$6.2 million from US$8.2 million for the year-ago quarter.

Triyards attributed this to lower gross profit margins resulting from a different mix of projects, and the fact that in the comparative quarter last year it provided for a negative goodwill of US$3.9 million from the acquisition of Strategic Marine Group.

Commenting on its performance, Triyards said weakened oil prices since the beginning of 2015 had led to reduction or postponement of oil & gas capital expenditure especially for exploration activities.

It said the group has made conscientious effort, over the past 12 months, to diversify its clientele base as well as to expand its product offering beyond O&G related assets, such as chemical tanker, scientific research vessel and windfarm crew transfer vessel.

It therefore believes that there will be continued demand for its offering, notwithstanding the competitive and challenging environment it anticipates in the next 12 months.