SINGAPORE (April 7): Triyards Holdings recorded a loss after tax of US$4.2 million ($5.9 million) and US$6.3 million in 1H17 and 2Q17 ended Feb after making a total allowance of US$8.4 million in doubtful receivables.
“These arise from related entities of parent company Ezra Holdings which are either facing a potential going concern issue or have filed for Chapter 11 of the United States Bankruptcy Code,” says Triyards in a filing this morning.
In 1H17, Triyards reported revenues of US$161.8 million, an increase of 9% from a year ago, on the back of contributions from new product offerings related to the diversification strategy, and contribution from Strategic Marine Group for the construction of LNG powered aluminium catamarans ferries. Revenue for the three months ended 2Q17 stood at US$70.6 million.
Gross profit was lower for both 1H17 and 2Q17, mainly due to different mix of projects and competitive market environment. Correspondingly, profit from operations for 1H17 and 2Q17 was down by 47% and 38% respectively, at US$8.0 million and US$4.4 million. Administrative expenses decreased by 5% and 19% in 1H17 and 2Q17 respectively.
Triyards said it recently eecured contracts include seven tugboats and one aluminium crew vessel. The wins bring the group’s order book value to US$321 million, contributing earnings visibility in FY18.
The group added that it will continue to deliver on its diversification strategy with US$32.9 million in new contracts win in April, expanding its client base and regional footprint.
Shares of Triyards closed at 25 cents on Thursday.
