Triyards profit climbs 13% in Q1 FY15

OFFSHORE engineering group Triyards Holdings recorded a 13 per cent jump in net profit to US$8.2 million for the three months ended Nov 30, 2014.

Revenue over the same period tumbled 37 per cent to US$56.7 million. Revenue in the same period a year ago had recorded higher contributions from a subsea construction vessel, Lewek Constellation, and three self-elevating units (SEUs), all of which were either fully completed or at final completion stage as at Nov 30, 2014, resulting in lower revenue recognised in Q1 FY15, the company said in a statement.

Triyards' revenue in Q1 FY15 was mainly from three SEUs, which were at an advanced stage of construction as at Nov 30, 2014, an offshore fabrication project as well as the acquisition of Western Australia's Strategic Marine Group for A$23.3 million in October 2014.

Its improved profit was mainly from higher margins from an offshore fabrication project and different mix of projects at their respective completion stages, Triyards said in a statement.

For the three months ended Nov 30, 2014, earnings per share stood at 2.61 cents, while net asset value per share was 59.48 cents.

Triyards acknowledged that the recent slide in oil prices could potentially lead to reduction or delay of oil & gas capital expenditure, especially for exploration activities.

However, as a full value chain player, Triyards believes there will be continued demand for its offerings, notwithstanding the competitive and challenging environment which it anticipates in the next 12 months.

Before market opening on Thursday, Triyards' share price stood at S$0.505, a 2.02 per cent rise from Tuesday's closing price.