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Triyards' Q3 profit falls 24%; revenue jumps 28%
EZRA Holdings' yard-operating subsidiary Triyards Holdings on Friday posted a 24 per cent fall in its net profit for the third quarter, despite a rise in revenue, due to lower gross profit margins from a different mix of projects.
The firm's net profit for the quarter ended May 31, 2016, slumped to US$4.12 million, from US$5.4 million a year ago.
Revenue rose 28 per cent to US$82.1 million but cost of sales advanced even more, by 37 per cent, to US$68.2 million.
This caused gross profit to fall to US$13.9 million, down 2 per cent from US$14.1 million in the same period last year.
The group said it expects market conditions for the oil and gas industry to remain "extremely challenging" for the next 12 months, despite a moderate rebound in the oil price since the beginning of this year.
But it said it has diversified its clientele base and product offerings, and sees continued interest in its products with this strategy.