Triyards' Q4 earnings hit by revenue fall

Singapore

TRIYARDS Holdings registered a 49 per cent drop in net profit to US$5.3 million for the fiscal fourth quarter ended Aug 31 as revenue fell 36 per cent to US$48.8 million.

The year-on-year fall in earnings for the offshore engineering group would have been higher if not for a margin rise which helped gross profit drop just 9 per cent to US$13.2 million. The three months saw administrative expenses up 138 per cent at US$5.81 million. Financial expenses rose 54 per cent to US$1.2 million.

Full-year net profit (FY2014) declined 15 per cent to US$26.7 million while revenue slipped 2 per cent to US$268.6 million. Triyards said the slip in revenue was due to lower revenue recognised from two self-elevating units (SEUs) of BH450 series. Both units were at the peak of the construction progress in FY2013, which resulted in recognition of higher revenue then. FY2014 earnings per share stood at 9.04 US cents, down from 11.71 US cents.

The group - which provides engineering, fabrication and ship-construction solutions for the offshore and marine industries - proposed a dividend of one Singapore cent per share (FY2013: two cents).

Chief executive officer Chan Eng Yew said of Triyards' outlook: "Our future earnings will be enhanced by our newly-acquired aluminium shipbuilding and fabrication capabilities and the rising momentum of our liftboat contract wins. We have set our sights on being one of the few Asian players able to construct hybrid steel and aluminium vessels and complex structures." Last week, the group announced that it had acquired Strategic Marine's facilities in Singapore and Vietnam for A$23.3 million.

The counter ended trading on Tuesday down half a cent at 66 Singapore cents.