SINGAPORE - Mainboard-listed Triyards Holdings posted a 66 per cent fall in first quarter net profit to US$2.1 million (S$3.01 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, it said in a filing with the Singapore Exchange on Friday (Jan 6).
For the three months to Nov 30, revenue rose 17 per cent to US$91.2 million from US$78.1 million in the year-ago quarter.
The increase in revenue was credited largely to contributions from two units of multi-purpose support vessels, three units of chemical tanker, four units of escort tugs, one unit of scientific research vessel and two units of oil tankers during the first quarter.
There was also contribution from Strategic Marine Group for the construction of aluminium crew boats and wind farm vessels
Triyards said it has successfully diversified its clientele base and expanded its product offerings beyond oil and gas related assets.
But it added that its primary business segment remains focused on fabricating assets for the full O&G value chain - construction and production, as well as decommissioning, inspection and maintenance of offshore infrastructure servicing existing offshore fields.
It said it continues to see interest in its offerings with its diversification strategy initiated despite the current challenging O&G environment.
CEO Chan Eng Yew said that market fundamentals continue to be weak with the demand-supply imbalance largely unresolved.
"We foresee that market conditions for the O&G industry will remain challenging for the next 12-18 months and expect sustained margin pressures for industry players," he said. "We continue to build our product range while maintaining superior quality and safety standards to stay relevant in this difficult market."