SINGAPORE (July 21): Shipbuilder and repairer Triyards Holdings sunk into losses of US$63.3 million for 3Q17 ended May compared to a profit of US$4.1 million a year ago.
For the 9M17 ended May, losses came in at US$67.5 million, compared to a profit of US$15.6 million a year ago.
Triyards says the losses were due to a US$45.1 million for the impairment of certain assets in 3Q17, lower revenue contribution and cost overruns from certain projects.
Chan Eng Yew, CEO of Triyards, says, “The prolonged depressed state of the marine and oil and gas industries coupled the fiercely competitive market environment has negatively impacted the carrying value of assets across the industry. In light of the market weakness, the group has taken a prudent approach and made an allowance amounting to US$45.1 million for the impairment of certain assets in 3Q17.”
The group reported revenue of US$30.9 million for 3Q17, a decrease of 62%. Revenue for 9M17 fell by 16% to US$192.8 million.
This comes on the back of lower contributions from strategic marine group for the construction of aluminium vessel projects and significantly lower contributions due to the completed deliveries of five self-elevating units over the past 12 months.
The decreases were partially offset by contributions from two units of multi-purpose support vessels, three units of chemical tankers, four units of escort tugs, one unit of scientific research vessel, two units of oil tankers and one unit of a floating dock during the financial period under review.
As the group pushes ahead with its diversification strategy away from non-oil and gas related projects, Triyards believes that there will be continued interest for its offerings, notwithstanding the competitive and challenging environment.
Chan says, “In the absence of a positive catalytic industry development, we expect the next twelve months to be a challenging period for the industry as a whole and also the Group. On the operational side, the Group continues to focus on its diversification strategy to build up the pipeline as well as improve project execution and cost efficiency.”
Shares in Triyards closed at 16 cents on Thursday.
